Advertisement
Sponsored by Wales & West Housing Association

Should tenants get two-months’ rent compensation from their landlord when they’re evicted?

The Welsh government has rejected a proposal to allow tenants to be compensated for being kicked out of their home. Here’s what renters in Cardiff thought about it

Sponsored by Wales & West Housing Association

Being evicted can cost tenants an estimated £2,000 on top of the stress of finding a new place to live – but a new proposal to give renters compensation to ease the pain has been rejected.

The Welsh government published a feasibility study last week assessing a proposal for tenants to be given two months of rent as compensation when they are hit with a no-fault eviction.

Generation Rent proposed the idea to deter landlords from opting for an eviction and to protect tenants from costs. The Senedd’s Local Government and Housing Committee recommended the Welsh government adopt the idea at the end of 2024.

But the government assessment rejected the idea over fears it will increase private rents, lead to higher costs for landlords and see low-income renters have their benefits stopped.

For Cardiff renter Kate, the idea of receiving compensation for being evicted is a positive one.

Speaking to Big Issue as part of our Community Roadshow in the Welsh capital, the 23-year-old, who asked not to use their surname, said she received an eviction notice at the end of 2024 that was later found to not be valid after they challenged it.

Advertising helps fund Big Issue’s mission to end poverty
Advertisement

The renter, who is a member of the Acorn community union, said the HMO they live in has been beset with issues, including damp and mould, a rodent infestation and water leaks.

Kate, who shares £1,100 rent with a friend, said: “I think that tenants should be compensated if they are evicted because they have got a right to enjoy the place that they’re in.

“If they are being forced to move out for no good reason, they should absolutely have something to help ease that position. Moving is a big stress on anyone, emotionally, physically and financially, so I think compensation should happen.” 

Dan Snipe, a representative of Acorn’s Cardiff branch, added: “I think tenants are fully in the right to be given some kind of compensation.

“Obviously in Wales we have six months notice and that’s good, but my position is that no-fault evictions shouldn’t be a thing in the first place. 

“Moving home is a very stressful and difficult thing to do, especially when you thought you were going to be in one place, your job is in that place, you’ve settled in the community and you need to find somewhere really close by. I think it’s absolutely fair that two months of rent in compensation is more than justified.”  

Advertising helps fund Big Issue’s mission to end poverty

Ministers’ response, published last week, rejected the idea, citing “unintended consequences”.

The study warned that some tenants may choose to delay securing alternative accommodation in order to benefit from the last two months of rent. This risked undermining the extended six-month notice period introduced in Wales in 2022.

The government also warned landlords could increase rents to cover costs across 10 months rather than 12, leading to a general rise in private rents across Wales. This would “impact on all tenants and could see those on low incomes or in receipt of housing benefit pushed into  rent arrears”.

Not paying rent for two months could also see tenants encounter problems with the Department for Work and Pensions.

Housing benefit or the housing element of universal credit requires a tenant to have a legal liability to pay rent so two months without that requirement could see their benefits stopped and lead them to fail any credit checks for a new property. Tenants could also see their state support reduced.

The study concluded that the “unintended consequence” of the plan would benefit tenants with higher disposable incomes and savings while adversely impacting low-income tenants.

Advertising helps fund Big Issue’s mission to end poverty

In response, Ben Twomey, chief executive at Generation Rent, told the Big Issue that ministers needed to acknowledge how much an eviction costs tenants.

“We’re disappointed the Welsh government has decided renters should not be compensated for no-fault evictions. Packing your entire life away when you have done nothing wrong is stressful and painful, while an unwanted move costs the average two-person UK household over £2,200,” said Twomey.

“Half of private renters have no savings at all. The cost of moving means we have to wait until the last moment to find a new home to avoid paying double rent. But these short windows make it difficult to find a new home in time, contributing to record levels of households currently trapped living in temporary accommodation in Wales at huge cost to local councils. 

“The fact the Welsh government has emphasised potential risks to landlords, without properly recognising the enormous harm of evictions to renters, means that renters in Wales will also continue to stare down the barrel of homelessness, debt and poverty.”

Robin White, Shelter Cymru’s head of campaigns, said that compensation would be useful across a range of situations, including for low-income tenants who end up in temporary accommodation and often face indirect costs such as storage for their possessions.

“We’re disappointed the Welsh government didn’t see an opportunity to explore this idea further,” said White. “In particular, we would have liked to have seen a commitment to work with the DWP to find a way forward that protects the incomes of those in receipt of welfare, a group that could benefit hugely from a policy like this.

Advertising helps fund Big Issue’s mission to end poverty

“With rents rising faster in Wales than anywhere else in Britain it’s clear that something needs to change to protect tenants from the risk of homelessness following eviction. This proposal could be part of that and it merits further work to identify solutions to the risks.”

Landlord and letting agent representative bodies have welcomed the decision to reject the idea.

Tim Thomas, policy officer at letting agents body Propertymark, said: “We used the opportunity to highlight to the Welsh government that if this proposal went ahead, it could result in less supply of privately rented accommodation in Wales, with the propensity of increased rents for tenants. This was not a practical solution for tenants, especially for those who are in receipt of benefits and pay their rent through managed payments.

“The proposal also gave no regard for the ongoing costs landlords have in sustaining tenancies including mortgage and insurance costs. There have been significant changes in recent years to legislation in Wales and we are keen to continue to work with the Welsh government to ensure these bed-in and landlords, tenants and agents have time to understand and apply the existing rules before further reforms are looked at.”

Do you have a story to tell or opinions to share about this? Get in touch and tell us moreBig Issue exists to give homeless and marginalised people the opportunity to earn an income. To support our work buy a copy of the magazine or get the app from the App Store or Google Play.

Advertising helps fund Big Issue’s mission to end poverty

Never miss an issue

Take advantage of our special subscription offer. Subscribe from just £9.99 and never miss an issue.

Recommended for you

Read All
Mum's fury after baby son is bitten by bed bugs in London horror home: 'It makes me feel hopeless'
Alleged bed bug bites on an arm
Social housing

Mum's fury after baby son is bitten by bed bugs in London horror home: 'It makes me feel hopeless'

This Prince William-backed project helps homeless young people into careers: 'I want to work my way up'
Prince William
Work

This Prince William-backed project helps homeless young people into careers: 'I want to work my way up'

How can I help homeless people during a UK heatwave?
uk heatwave
Homelessness

How can I help homeless people during a UK heatwave?

Homelessness hit new record highs in England in 2024: 'The system is at breaking point'
A couple in temporary accommodation with a dog
Homelessness

Homelessness hit new record highs in England in 2024: 'The system is at breaking point'

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Citroën Ami: the tiny electric vehicle driving change with The Big Issue
4.

Citroën Ami: the tiny electric vehicle driving change with The Big Issue