Propertymark has responded to the Senedd Finance Committee’s consultation on the 2025-26 Welsh Budget, calling for fiscal policy to be geared towards stimulating supply in the private rented sector, boosting homeownership, and tackling the scourge of empty commercial properties that blight Welsh communities.
The chancellor Rachel Reeves announced in her Autumn Budget in October that the Welsh Government will be provided with a £21bn settlement in 2025/26 – the largest in real terms in the history of devolution.
However, given the cost-of-living challenges that impact all nations of the UK, Propertymark used their Welsh Budget response to argue that Welsh local authorities must be adequately funded to support new and existing legislation demands such as ensuring property standards and enforcement of building safety.
The professional body welcomed the increase in funding for the Housing Support Grant, which they called for in their previous budget representation. However, given the scale of homelessness, they challenged the Welsh Government and local authorities to use this fund more radically to support private landlords and their agents to reduce the impact of homelessness.
Propertymark has also called for greater stimulation of supply of private rented accommodation by calling for the Welsh Government to use their tax leavers positively. This included renewing the call for the Welsh Government to exempt new long-term rental properties from the four per cent Land Transaction Tax (LTT) levy on additional homes, and to incentivise landlords to decarbonise with grants and interest free loans like the support offered for homeowners through the Development Bank of Wales’s Green Homes Wales Scheme.
To boost homeownership, which would have a substantial positive impact on the Welsh economy, Propertymark called for Welsh government Help to Buy to be extended to the ‘second hand homes market’ to include older properties and new builds put back on the market.
The professional body also called for the Welsh government to adopt high street rental auctions, which the Labour led UK government will be unveiling soon which will give English local authorities new powers to auction long term empty properties giving businesses and community groups a ‘right to let’ these long-neglected town-centre commercial properties.
Tim Thomas, policy and campaigns officer at Propertymark, said: “The next Welsh Budget, despite receiving more money from the UK government than previous years, will still be challenging for public finances. Given the challenges that the housing sector faces, now is the time to encourage investment from landlords, support vulnerable households, ensure local authorities are funded to support communities and boost our towns and city centres. This will ensure more homes, higher standards and bring economic growth across the country.”
The Welsh government has announced that its outline and detailed draft Budget will be published on Tuesday 10th December 2024. This will set out the tax, spending and financing plans for Wales for 2025-26. The final budget will be published 25 February 2025.
