1.              As part of the Local Government and Housing Committee’s inquiry into the private rented sector, the Citizen Engagement Team proposed a qualitative approach to engagement, comprising focus groups with private sector landlords and tenants.

2.            This summary paper is based upon contributions made by private sector landlords and tenants during three focus groups which took place between 22 February and 4 April.

3.            Contributors were recruited through Tai Pawb, Acorn and Carmarthenshire People First.

4.            Six landlords and thirteen tenants participated in the focus groups. Contributor composition varied with contributions received from individuals in five local authority areas, across three Senedd regions.

5.            Thank you to everyone who contributed to the programme of engagement.

6.            The format of engagement was informal and largely comparable across all focus groups, but varied slightly to meet the specific needs of contributors. Two focus groups were held face-to-face with one focus group taking place online.

7.             The following themes emerged from the discussions.

8.            The majority of tenants contributing during the focus groups were keen to emphasise that the cost of renting in the private sector was increasingly challenging, particularly against the backdrop of the rising cost of living.

9.            A number of tenants shared examples of what they considered significant rent increases, along with unreasonable conditions of payment. This included being required to pay rent in full up to 6 or 12 months in advance, and requiring a high level guarantor if a tenant was on a fixed term contract.

10.        One contributor explained that the property they had rented for £600 per month in 2016 had now increased to £1,300 per month in 2024.

11.           Some contributors also shared the view that bidding wars for rental properties in Cardiff are encouraged by letting agents, which is further driving up rents.

12.         Whilst the aim for most tenants was to own their own home, many explained that it was extremely difficult to save whilst renting. Those who were able to live with family may be able to purchase a property more easily, but this is not an option for many. The lack of autonomy over their own home and the nature of their tenancy agreement (which may, for example, prohibit children and/or pets) were cited as key reasons for wishing to own their own property.

13.         Whilst many contributions explicitly or implicitly expressed largely negative relationships between a landlord and tenant, some contributors shared examples of positive landlord and tenant relationships.

14.         These positive relationships were largely as a result of clear and consistent communication between landlord and tenant, which some contributors offered as a pragmatic solution to many of the issues that arise between landlords and tenants.

15.         A number of tenant contributors participating in the focus groups shared anecdotal accounts of rented properties in poor states of disrepair. Some experienced issues with landlords failing to acknowledge and/or address problems within the property, whilst others were frustrated with the lack of responsiveness from their landlord. 

16.         Some participants called for legislation to be introduced to compel landlords to respond to their tenants within a specified timescale, when issues concerning the poor standard of their property are raised.

17.         One tenant shared an example of issues with mice and mould in the property, which she shares with her daughter. She keeps the property in good condition and tried to clean the mould. Whilst she was initially reluctant to tell her landlord for fear of the consequences, the issues were raised with the letting agent but the issues persisted. The issues were only raised with the landlord when a support service intervened to advocate on behalf of the tenant. In the meantime, the rent has increased and the issues remain unresolved.

18.         Some explained they were apprehensive of raising the poor condition of their property with their landlord for fear of retaliatory action such as eviction or a rent increase.

19.         Conversely, landlords shared examples of tenants failing to maintain their property to a reasonable standard. Some landlords gave examples of tenants deliberately damaging their property once served with an eviction notice. As such, not only were they incurring costs associated with evicting a tenant, but were also needing to spend in order to rectify the damage caused.

20.       This process is often further complicated by the fact that some landlords are unlikely to be reimbursed for costs incurred, whilst also having to be mindful that local authority representatives are encouraging tenants to remain at the property until they evicted.

21.         Some contributors, both landlord and tenant, acknowledged that it is entirely possible that some landlords may discriminate against prospective tenants who may be in receipt of low or irregular income.

22.        Benefit claimants and those with unreliable income streams were given as examples of tenants who may be considered less desirable, due to the perceived negative connotations associated with their ability to honour the terms of a tenancy agreement.

23.        A number of landlords participating in the focus groups explained that where there may be a number of applicants for a tenancy, the decision a landlord will ultimately need to make is not rooted in discrimination but rather, long-term business viability. A landlord needs to ensure that a tenant is able to pay their rent on time and maintain the property in a reasonable condition. Failure to do so can result in significant ramifications for a landlord who may have a mortgage to pay and/or repairs to make to rectify any damage to their property.

24.        Individuals who lead chaotic lives or those with complex needs may not have identification documents, a bank account or the necessary skill and/or capacity to maintain a tenancy agreement. However, some participants, both landlord and tenant, were eager to emphasise that it is unjust to vilify all private landlords when there are so many who support their tenants.

25.       In addition to the criticism aimed at landlords according to some contributors, the need to keep abreast of changes in legislation affecting the sector, was a reason given for some landlords exiting the private rented sector. This, in turn, would impact upon housing stock in what many viewed as an already depleted market.

26.       Whilst discussion on housing legislation was fairly limited, some contributors shared the view that some clause of the Renting Homes Act are optional and are therefore disapplied. Anecdotal evidence suggests that some letting agents are removing ‘fit and habitable’ requirements from contracts and that this is legal.

27.        Some contributors explained that a consequence of a lack of privately rented accommodation is that landlords can be selective about who they choose to accommodate as tenants in their property.

28.       Some tenants participating in the focus groups said that the Welsh Government should intervene in order to control rents whilst the lack of supply is addressed. A combination of rent caps and ending ‘no fault’ evictions could be helpful and were described as ‘sticking plasters’, whilst issues concerning supply are addressed.

29.       Contributors said they would be happy to live in social housing, but did not consider this a realistic option due to the high demand for social housing.

30.       Some offered the view that due to the lack of housing stock, students are having to sign leases in October for the following academic year because there is no guarantee they would be able to secure accommodation at short notice. Additionally, contributors with experience of the private rental market in Cardiff said that whilst there is a great deal of luxury student accommodation, much of it is unaffordable. There is also a perception that there are more student properties than there are students to fill them.

31.         The lack of privately rented accommodation was considered particularly acute in rural areas, where some contributors explained that people are often priced out of their communities.

32.        A number of landlord contributors were of the view that private landlords are often negatively characterised as unreasonable and greedy. These generalisations, which one participant described as ‘landlord bashing’, are unwarranted and is an unfair reflection on those who support and care for the wellbeing of their tenants.

33.        Despite often unjust media coverage of private landlords evicting tenants, landlords participating in the discussions stressed that it is not in their interests to evict a tenant without good reason. Evicting a tenant is a time-consuming, costly and often contentious process and it is therefore unlikely that a landlord would evict a tenant without justification.

34.        Some participants explained that the demographic makeup of the private rented sector covers a wide spectrum. Whilst the needs and circumstances of tenants vary, the nature of the support (or lack thereof) and accommodation provided by landlords also varies.

35.       The needs and level of support required by some tenants can be multifaceted and complex, which may render certain accommodation unsuitable. However, some landlords participating in the focus groups emphasised that they do accommodate vulnerable tenants and provide support for those with particular needs.

36.       One participant gave an example of the level of support they provide their tenants, with the aim of encouraging them to live as independently as possible within the community. This involves helping them with debts, managing utilities and preparing food. They also support their tenants with benefit entitlement.

37.        Whilst much of the discussion during focus groups focused on the challenges within the private rented sector, some shared possible solutions to some of the issues raised. These included:-

§    Landlords currently have no social responsibility towards tenants. Some contributors would like to see a statutory duty on landlords to co-operate with tenants.

§    Consistent and clear communication between landlord and tenant.

§    Ensuring information relating to the private rented sector in Wales is accessible to different groups of people with varying needs.

§    Views on Rent Smart Wales were largely positive from both landlords and tenants participating in the focus groups, however some felt that it  is a ‘paperwork exercise’. Some said they were concerned that there have only been three prosecutions in South Wales and that Rent Smart Wales needs ‘more teeth’ and resources.