Welsh government to consider financial incentives for landlords

The Welsh Senedd has listened to calls from Propertymark for financial incentives to decarbonise the private rented sector and listed them among recommendations for the Welsh government.

As part of the Senedd Climate Change, Environment, and Infrastructure Committee’s inquiry into the decarbonisation of the PRS, Propertymark provided written and oral evidence to members of the Senedd.

The UK government has consulted on a proposal for all new tenancies to meet an Energy Performance Certificate (EPC) rating of C from 1 April 2025 and existing tenancies by 1 April 2028, but landlords and property agents are still waiting on clarity on the decarbonisation targets.

To level the playing field for landlords and agents operating in Wales, Propertymark recommended that the Development Bank of Wales could offer grants or interest free loans to landlords to help them decarbonise and to finance retrofit. Other examples of incentives could be through the taxation system with possible reduced rates of land transaction tax (LTT) or council tax rebates for both landlords and homeowners. The industry body also called for a clear strategy to support landlords contribute towards Net Zero as current targets for different tenures was causing confusion across the sector.

In total, the committee made 29 recommendations which will go to the Welsh government

Timothy Douglas, the organisation’s head of policy and campaigns, said: “Propertymark supports the Welsh government’s aims of achieving net zero and moves to improve the energy efficiency of homes in Wales. A long-term housing decarbonisation strategy with cross-party support and realistic targets can help to achieve this.

“We’re really pleased to see that our proposals such as the availability of interest-free grants for landlords, requests for an agreed timetable and milestones for the sector, the production and inclusion of a clear decarbonisation strategy, alongside calls for the minister to provide clarity on how she will raise awareness have all been recommended to the Welsh government.

“We now urge the Welsh government to act upon these recommendations and work with the UK government to introduce policies that allow landlords and homeowners to decarbonise their homes and properties in Wales.”

Source: Property Industry Eye