Senedd Committee: Renters in Wales could get compensation for no-fault eviction

A Senedd Committee is calling for private renters to be given more rights, including the possible right to compensation if they are evicted, in a new report out today.  

The Local Government and Housing Committee's inquiry into privately rented homes is urging the Welsh Government to tackle numerous issues in the housing market to make renting a better experience.  

No-fault eviction compensation  

The Committee is urging the Welsh Government to ease the pressure on tenants facing a no-fault eviction by looking into a proposal where landlords would give renters the last two months' rent of their tenancy as compensation.  

Jeffrey Walters, from Newport, was served a no-fault eviction notice by his landlord in 2022. He said, “I felt like the world had collapsed in on us; it was one of the most stressful times of my life. One day out of the blue, the owner of the property came to the house and said he was planning on evicting us and we needed to make plans to leave. It came as such a shock. 

“As a single parent of two children, it didn't just affect me, it affected my children as well. They kept on saying ‘What's the point of going to school if we'll be living somewhere else in a few weeks?'.  

“Trying to find a new home for us all was so hard; it was hurdle after hurdle with each barrier being bigger than the last and you never knew when you'd gotten over the last one. 

“I think that some compensation from the landlord would be a good idea. Although it wouldn't take away from that initial stress of finding a new place, if the scheme can help people with a deposit for their next home, then that's a positive thing. And I think that good landlords would feel that they're at least helping their tenant move on.”  

The Welsh Government told the Committee that outright banning no-fault evictions would contravene human rights laws and that the existing six-month warning that a landlord must give a tenant means that Wales currently has the toughest protections for tenants in the UK.   

But with no-fault evictions still a worry for thousands of renters in Wales, the Committee is telling the Welsh Government that by April 2025 they should publish their reasoning on whether two-month rent compensation to renters facing eviction is feasible.   

And with a law banning no-fault evictions currently making its way through the House of Commons, the Committee says the Welsh Government should monitor the situation in England to ensure that tenants in Wales don't end up worse off.  

Discrimination  

Worryingly, the Committee also finds widespread discrimination against people on benefits by landlords. A 2022 survey by Shelter Cymru showed that 37 per cent of landlords in Wales say they do not, or prefer not, to let to tenants on benefits.  

Coupled with this are demands from some landlords for several months' worth of rent in advance which can make it near impossible for people on low incomes to afford to rent.   

Another barrier faced by Jeffrey while he was looking for a new home, was regarding his guarantor. He said, “When I was trying to find another place to stay, I had to give a holding deposit of over £200 to a company while they checked over my application.   

“But what they kept hidden in the fine print was that they wouldn't accept a guarantor who was abroad, so they rejected my application and kept my money – just because my guarantor had answered his phone when he was on holiday.” 

Finding an acceptable guarantor is a severe issue for many people leaving care, or for refugees and people who have moved to Wales from outside the UK. 

The Committee is calling for the Welsh Government to regulate the sector to remove these types of financial and bureaucratic barriers that tenants face.  

Pet problems  

During its inquiry, the Committee heard of widespread evidence of discrimination by landlords of potential tenants including those with pets.  

The Committee is calling for the Welsh Government to explain how they intend to make pet ownership in rented accommodation a right, and to also launch a myth-busting campaign with landlords to eliminate discrimination against pet owners.  

Many landlords fear that allowing pets in their property increases the risk of damage, but the Committee was told that polling shows around three-quarters of landlords who allow pets reported no issues at the end of the tenancy.   

Evidence given to the Committee also outlined how landlords could make more money renting to pet owners as they are likely to stay in a property longer.   

The Committee heard that reducing discrimination against pet owners would stop people having to choose between giving their pets away or turning down accommodation.   

John Griffiths MS, the Chair of the Local Government and Housing Committee, said, “Having a safe place to call home is a fundamental part of people being able to live happy, healthy and fulfilling lives, regardless of whether that home is owned or rented.  

“Unfortunately, this Committee heard far too much evidence of people unable to find a stable home because they were on benefits, couldn't afford huge up front deposits or had a pet. This discrimination, and the many other barriers in people's way, must be addressed as soon as possible.  

“And despite rules making no-fault evictions harder than they used to be, we know that many people are still living with the possibility of eviction hanging over their heads.   

“The private rented sector has to work for both tenants and landlords. This is why we're urging the Welsh Government to implement our recommendations so that high-quality, affordable homes are available to all.”  

ENDS   

Notes   

- The full report is available here:  Private Rented Sector - EMBARGO EN.pdf