Wales' Rental Bill: what the 2027 shake-up means for landlords and tenants

Wales is gearing up for a major overhaul of its private rented sector, and while the legislation itself is not expected until 2027, the groundwork is already being laid. The Welsh Government's legislative programme for the next 18 months includes a Rental Bill that will start with rent data collection and a strengthened enforcement role for Rent Smart Wales, before opening the door to much wider reforms later in the Senedd term. For anyone letting, renting or investing in Welsh property, the next couple of years will shape the rules of the game.

The first phase may sound technical, but it matters. The Welsh Government intends to make rental data reporting compulsory, giving it a clearer picture of rents across Wales to inform decisions on Local Housing Allowance, benefits administration and future rent policy. Propertymark's Policy and Campaigns Officer, Tim Thomas, met officials on 23 July 2026 to stress the practical burden this could place on agents. Larger agencies hold substantial tenancy and rent data, but extracting, formatting and submitting it is no small task, while smaller firms with fewer staff and limited technical capacity may struggle most. Details on what data will be required, who must submit it and how often are expected later in summer 2026.

Enforcement is the other early priority, and there are signs the sanctions system could be simplified and streamlined, with larger financial penalties available. Local authorities may even be allowed to keep income from fines, giving them a greater incentive to act. Propertymark supports effective enforcement against landlords and agents who fail to meet their legal duties, but insists it must be consistent and proportionate, with Rent Smart Wales itself held accountable and transparent about its priorities.

The bigger changes are being signalled for later in the term. The First Minister told the Senedd that the initial legislation would lay the groundwork for measures to make rents fairer, limit no-fault evictions and strengthen tenants' rights, alongside separate proposals for a legal right to adequate housing. Wales currently allows landlords to regain possession without establishing fault through Section 173 of the Renting Homes (Wales) Act 2016, though with six months' notice and no notice in the first six months of a contract, giving contract-holders at least 12 months' security. England's Renters' Rights Act 2025 has abolished no-fault evictions entirely, but Propertymark argues the two nations have different tenancy frameworks and Welsh reforms must reflect the Welsh market. It has stressed that any removal of Section 173 must come with stronger, workable possession grounds and a hard look at court capacity and the time taken to regain possession.

Propertymark is firmly opposed to rent controls, pointing to evidence from other markets that restricting rents can deter investment, reduce the number of homes available and limit tenants' choices. It has asked the Welsh Government to use the next 18 months to gather robust evidence before bringing forward detailed proposals, followed by a formal working group involving landlords, agents, tenants and housing organisations, plus a full public consultation. It has also sought clarity on a Welsh Housing Survey, arguing better evidence on conditions, rents and supply would reduce reliance on new reporting duties loaded onto businesses. CEO Nathan Emerson wrote to the First Minister setting out this position following the announcement on 14 July 2026, and the association has offered to convene a roundtable of agents so Ministers hear directly about the practical effects.

So what does this mean for you? Welsh landlords should expect more reporting obligations, potentially tougher penalties and, in time, changes to possession rules, so keeping records in good order and staying compliant with Rent Smart Wales is a sensible starting point. Tenants can anticipate stronger rights and security over the course of the Senedd term, though the detail is still to come. And for agents, the message is engagement: with consultation and scrutiny still ahead, there is a genuine window to shape reforms that protect tenants without undermining investment, housing supply and confidence in the Welsh rented sector.