Interview with Huw Lewis, Welsh Housing Minister

UK Landlord: How would you assess the housing market in Wales at the moment?

Huw Lewis: The market in Wales remains relatively flat, though we do not seem to be experiencing the wide ranging and regional variance that is being experienced in England. The picture is not universal across Wales, as we do have more localised variation, with areas in north Wales reporting a 1.3 per cent rise in prices.

Extraneous factors like the uncertainty over jobs, for which the significance of the public sector in Wales is salient, low consumer confidence and national economic and Eurozone uncertainty continue to be influential factors for the market.

We remain clear that demand continues to outstrip supply, including that for affordable properties, and we are pursuing innovative means, for example, the Welsh Housing Partnership, of increasing supply both in the private and social sectors in light of low levels of development by volume builders and cuts in our capital budgets.

Although hard and fast data doesn’t exist (the proxy is the Court orders), the level of repossessions across Wales has not risen to the level anticipated by the Council of Mortgage Lenders.

UKL: How will the proposed Housing Bill for Wales tackle increasing housing supply and boost housing quality?

Huw Lewis: The First Minister’s Legislative Statement to the National Assembly on 12th July included a Bill on Housing during this Government’s term of office. The Bill will help us meet our Manifesto commitments in areas such as tackling homelessness and improving standards and tenants’ rights in the private rented sector. It will also build on the three strategic priorities identified in our National Housing Strategy. These are to increase the supply of housing; improve its quality; and improve housing-related services, particularly for those who are vulnerable or homeless.

We will work with stakeholders over the coming months as we develop proposals for inclusion in the Bill. The Government is committed to consulting fully on legislation and we will publish our proposals in due course.

UKL: To what extent have the recommendations by the Communities and Culture Committee on Making the Most of the Private- Rented Sector in Wales been implemented in the Government’s housing strategy?

Huw Lewis: There were 10 recommendations contained in the Report. These were:

1. The Welsh Government actively seeks to promote a positive public image of the private rented sector as a tenure of choice in Wales.
2. The Welsh Government promotes the development and use of Social Letting Agency schemes and Private Leasing schemes by local authorities.
3. The Welsh Government produces a specific strategy for making the most of the private rented sector in Wales.
4. The Welsh Government continues to promote Landlord Accreditation Wales, working with publicly funded bodies and bodies representing the interests of both landlords and tenants to share and develop understanding and incentives for landlords to become accredited.
5. The Welsh Government researches the potential effectiveness of a mandatory licensing or registration scheme for all managers of private rented sector accommodation (including landlords) in Wales. 
6. The Welsh Government takes appropriate legislative action to enable the introduction of statutory regulation for all letting agencies in Wales. 
7. The Welsh Government encourages Local Authorities to continue to improve the strategic co-ordination of their different departments’ engagement with the private rented sector. 
8. The Welsh Government works with local authorities to develop ways of increasing tenants’ knowledge of their legal rights. 
9. The Welsh Government works with local authorities to develop and disseminate further guidance on bringing empty homes back into use, including the provision of examples of good practice, and monitors the outcomes of such guidance. 
10. The Welsh Government examines the potential for developing a ring-fenced fund, from which local authorities can allocate grants or recyclable loans to landlords and property developers, with the purpose of improving empty properties, recycling them back into use for renting to vulnerable people.

All recommendations were accepted either in full or in principle last February. Since then, two significant changes have occurred in Wales. The first was the yes vote in the Referendum* and the second was the result of the Assembly elections.

I remain supportive of the Committee’s findings and recommendations and am exploring all options for improving the private rented sector, not only to deliver on the Committee’s recommendations but also on the commitments given in our manifesto which has become our Programme for Government. Our plans for the sector will be clearer in the coming months as we develop the planned Housing Bill but I repeat that we will work with stakeholders over the coming months and one of our first actions will be to reconvene our Private Rented Sector sub group – which includes the NLA and other key stakeholders.

UKL: Are there any plans to support or further promote Project Barry, the partnership of housing bodies, organisations and professionals that seeks to create a best practice model for housing standards in Wales that will bring value for the community and value for money?

Huw Lewis: In 2010, Barry Regeneration Area was awarded £9m of investment from the Welsh Government; we are also investing through the Castleland Renewal Area scheme. Housing is a key priority for the Regeneration Area programme. The private rented sector accounts for 20 per cent of the stock in the town, which is high for Wales, and we need to make sure tenants have consistently high living standards. I’m not aware of any concrete proposals from Project Barry, but meanwhile we are in touch with all the key players, and I am determined to work across Government and with public, private and third sector partners, to make sure that people in Barry really feel the benefits of the regeneration effort.

UKL: Given that the private-rented sector is set to overtake social housing in Wales by 2020 what is your message to private landlords in Wales?

Huw Lewis: Quite simply that we are committed to working to improve the quality of accommodation in the private rented sector but will seek to achieve this by working with all parts of the sector. As ever, good landlords will have nothing to fear and potentially much to gain but less good landlords will have to improve to stay in the game. Organisations like the NLA will have a vital role in helping us deliver that improvement.

UKL: Finally, do you have any personal experiences of renting or being a landlord that have shaped your views on the private-rented sector?

Huw Lewis: My experience of renting dates back to my student days – mostly low quality stuff but it was a long time ago!