Propertymark appeals for a strategic approach in the forthcoming Welsh Budget to stimulate the housing sector.
- The 2025-26 Welsh Budget sees a historic financial settlement to aid devolved governance.
- Emphasis placed on reinforcing the private rented sector and supporting homeownership.
- Suggestions include tax incentives and legislative funding to combat property issues.
- Measures to encourage landlord participation in solving homelessness are proposed.
In response to the Senedd Finance Committee’s deliberations on the 2025-26 Welsh Budget, Propertymark has urged a shift towards policies that invigorate the private rented sector and support homeownership. Their proposals aim to address the prevalent issue of derelict commercial properties affecting various Welsh communities.
The upcoming fiscal year will witness Wales receiving a substantial £21bn in financial aid from the UK Government, marking the largest budget allocation in real terms since devolution began. Propertymark stresses that local authorities require sufficient funding to meet new legislation demands, such as maintaining property standards and ensuring building safety.
Propertymark has expressed approval over the increased allocation for the Housing Support Grant. However, given the looming homelessness crisis, they argue that the Welsh Government should leverage this fund more aggressively, enabling private landlords and agents to alleviate housing shortfalls.
Further recommendations include exempting newly established long-term rental homes from the four per cent Land Transaction Tax on additional properties. They also advocate for financial incentives, like grants and interest-free loans, to encourage landlords to pursue environmentally friendly upgrades, similar to those offered through the Green Homes Wales Scheme.
To bolster homeownership and invigorate the economy, Propertymark calls for the extension of the Help to Buy scheme to include second-hand homes, covering both older properties and new builds being resold. Moreover, they urge the adoption of High Street Rental Auctions, akin to the upcoming UK Government initiative, allowing for the auctioning of long-term vacant commercial properties, thus offering businesses and community groups a ‘right to let’.
Propertymark’s policy and campaigns officer, Tim Thomas, accentuated the complexities facing the housing sector despite the increased budget. He highlighted that now, more than ever, it is pivotal for landlords to invest, for vulnerable families to gain support, and for towns and cities to be revitalised through robust financial planning, ensuring more housing availability, enhanced living conditions, and overall economic vitality across Wales.
Propertymark’s advocacy underscores the need for innovative fiscal measures to reshape the Welsh housing landscape effectively.
