Evaluation of Rent Smart Wales: summary

Introduction

The evaluation considers stakeholder perceptions of the role and effectiveness of Rent Smart Wales (RSW) drawing on quantitative and qualitative data to assess the impact of RSW on the private rented sector (PRS) in Wales. The findings highlight key areas where RSW has contributed positively, alongside ongoing challenges and potential areas for service development.

Introduced under the Housing (Wales) Act 2014, Rent Smart Wales, as the designated licencing authority for the PRS, intends to improve standards, enhance access to landlord and agent information for local authorities and tenants, and raise awareness of landlord and tenant rights and responsibilities. The legislation requires all landlords to register their rental properties. Those involved in letting or managing properties must also obtain a licence or appoint a licensed agent to do so on their behalf.

Methodology

This study builds on the 2016 Baseline Evaluation^{[footnote 1]} and the 2018 Implementation and Delivery Review.^{[footnote 2]}

A mixed-methods approach was used, consisting of online surveys with landlords and tenants, focus groups and one to one interviews with Local Authorities, Rent Smart Wales and Landlord, Managing Agent and Tenant representative groups.  Rent Smart Wales datasets were used to analyse changes in registration, compliance and enforcement rates. Changes in these rates over time and differences by region have been described.

Five focus groups were conducted in total, with RSW staff (n=10), local authorities (n=12), tenant representatives (n=5), and landlord and managing agent representatives (n=5). One-to-one interviews were held with senior RSW management (n=7). 

The online survey for landlords and managing agents resulted in 2,640 responses. 74 tenants responded to the online tenant survey. 

It is important to note that there has not been any analysis undertaken to assess the representativeness of the survey samples. The tenant survey resulted in a small sample size of 74 respondents. It is also possible that response and participation bias has been introduced into the sample.

Data collection

RSW has strengthened its data collection, transparency, and reporting, introducing public dashboards on enforcement activity and energy efficiency compliance as examples. These developments have been welcomed, but stakeholders noted the need for more frequent updates to ensure PRS compliance data remains current.

Local authorities, particularly Housing Enforcement Officers, Trading Standards, and Housing Options teams, reported that limited data-sharing restricts effective enforcement and tenant support. This affects their ability to monitor PRS compliance, enforce housing standards, and assist tenants. Expanding access to landlord compliance history, enforcement records, and rental trends would improve enforcement efforts and support tenant decision-making. Tenant organisations highlighted that tenants lack access to compliance data, preventing informed rental decisions. Expanding public access to landlord registration and compliance data could help tenants identify non-compliant landlords before entering into agreements.

There was strong support, among tenant representatives and local authority focus groups, for expanding the public register to include landlord compliance history, enforcement actions, and dwelling-level EPC ratings. This would allow tenants to make more informed decisions and improve public confidence in the PRS.

Enforcement and compliance

RSW’s enforcement framework has improved compliance among letting agents, with agent audits increasing awareness of legal obligations. Local authority focus groups and RSW personnel observed that audits have been effective in educating agents on regulatory requirements, with many demonstrating improved compliance following audit interventions.

However, landlord compliance remains inconsistent, and enforcement approaches vary across local authorities. Some enforcement teams face resource constraints, limiting their ability to proactively investigate non-compliance. Rent Smart Wales officers also reported concerns that Fixed Penalty Notices (FPNs) under the Housing (Wales) Act 2014 are set at fixed amounts (£150 or £250), which do not vary based on the severity or recurrence of breaches. As a result, they are perceived as having limited deterrent effect, with some landlords opting to risk penalties rather than comply. Additionally, there is concern that courts may reference these fixed amounts when setting fines, potentially leading to penalties that do not reflect the seriousness of the offence.

Local authorities stated that funding for RSW-related enforcement is limited. The current funding model, which relies on retrospective claims for enforcement activity, does not provide sufficient financial support for proactive enforcement. Some local authorities do not prioritise RSW-related enforcement due to resource constraints. Local authorities recommended establishing a dedicated enforcement fund, allowing local authorities to allocate consistent resources to enforcing compliance.

The identification of unregistered landlords remains a challenge. Local authorities recommended expanding cross-referencing Council Tax data with the RSW register to identify properties being rented without registration. Additionally, some landlords whose licences have been revoked or refused can immediately reapply under the current system. This allows them to continue operating while their new application is being assessed, which local authorities identified as a legislative concern requiring further review.

Licensing and registration process

The RSW licensing and registration system is perceived by Rent Smart Wales Officials to be operating effectively, with high levels of compliance among engaged landlords and agents. Landlords and agents also indicated positive experiences with the system, particularly regarding renewals, as noted in survey responses and focus groups. The streamlined renewal process, in particular, was noted as having benefitted agents and landlords, with fewer renewal-related complaints compared to earlier evaluations.

However, some landlords, particularly those with smaller portfolios, find the process and guidance complex and unclear. Feedback from landlords and agents who participated in surveys and focus groups, as well as local authority officers in focus groups, highlighted challenges with the complexity of RSW guidance and communications. Many respondents indicated that the distinction between registration and licensing remained unclear, leading to confusion about compliance requirements. Stakeholders suggested that clearer, step-by-step guidance and more user-friendly resources, such as simplified procedural manuals, video tutorials, or visual aids, would improve accessibility and understanding, particularly for renewals and the licensing process.

Communication and tenant engagement

RSW officers described how they have improved communication with landlords and agents, particularly through newsletters and online guidance. However, some landlords and agents reported that compliance notifications can feel overly formal or discouraging.

Tenant awareness of RSW remains low. Many tenants only become aware of RSW when experiencing issues with a landlord. Some tenant groups perceived RSW as a regulatory body that primarily interacts with landlords rather than a resource tenants can access for information and support. Some reported not knowing RSW existed before participating in the research. The scheme was designed to raise awareness among both landlords and tenants about their rights and responsibilities, but findings indicate further work is needed to achieve this objective.

Tenant groups stated that RSW should improve outreach, particularly for vulnerable tenants who may not engage with digital services. Some suggested RSW should collaborate more with tenant support organisations to help raise awareness.

Training and development

RSW’s training programmes, including CPD courses, are well received by landlords. Some landlord groups raised concerns that RSW does not recognise CPD from other professional bodies, resulting in duplicate training requirements. They suggested mutual recognition of CPD to reduce financial and administrative burdens.

Strategy and policy review

RSW has improved governance processes, but landlord and managing agents representatives suggested more structured policy reviews and greater transparency. Local authorities recommended that RSW’s enforcement policy be updated regularly to clarify responsibilities and ensure consistency across Wales.

The evaluation found that RSW has contributed to improving professionalism in the PRS and increasing awareness of landlord and agent responsibilities. However, inconsistencies in compliance, low levels of awareness of RSW amongst tenants, and enforcement resource constraints remain key challenges. To address these issues and strengthen RSW’s effectiveness, it is recommended that RSW and the Welsh Government explore the following.

Data collection and transparency

Expanding public access to compliance data

Including landlord licensing status, enforcement actions, and dwelling-level energy efficiency ratings, to improve transparency for tenants and enforcement bodies. This would provide tenants with more detailed information concerning the landlord’s compliance history before entering a tenancy and further aid enforcement officers in identifying high-risk properties.

Enhancing data-sharing with local authorities

Ensuring relevant teams (e.g., Trading Standards and Housing Options teams) can access PRS compliance data for cross-sector enforcement, to support wider and more effective enforcement and tenant protection support services within local authorities.

Reviewing the frequency and scope of compliance data updates

To ensure that the RSW shared access database remains current and comprehensive, enabling local authorities and enforcement teams to act on up-to-date compliance information and apply risk-based enforcement strategies effectively. To ensure that enforcement bodies receive timely and accurate information to support regulatory action and develop risk-based enforcement strategies.

Enforcement and compliance

Exploring alternative enforcement mechanisms

Modelled on approaches such as improvement notices under the Housing Act 2004 (Part 1) and licensing condition enforcement under Parts 2 and 3. To provide proportionate responses to varying levels of non-compliance before financial penalties or prosecution are considered.

Expanding the use of existing datasets

Such as Council Tax records, to identify unregistered rental properties would strengthen local authority enforcement efforts. Some local authorities already cross-reference RSW registration records, but this should be implemented nationally to ensure consistency and effective proactive investigations into non-compliant landlords.

Update RSW’s enforcement policy

To provide clearer guidance for local authorities on when to apply different enforcement actions, improving consistency across Wales. RSW’s enforcement policy has improved clarity on compliance expectations however, further refinement is recommended to ensure greater consistency in enforcement practices across Wales. The policy should provide clear guidance to local authorities on when different enforcement actions should be used, such as FPNs, improvement notices, or prosecution, and set out clear escalation criteria. To reduce variations in enforcement approaches across different areas and improve transparency.

Communication and tenant engagement

Reviewing RSW’s communication approach to ensure compliance messages are clear, neutral, and constructive

Some landlords and agents perceive compliance notifications as overly formal or discouraging, which may create barriers to engagement. Refining the tone and presentation of communications could improve engagement, encouraging compliance.

Expanding tenant-focused communication

Including reviewing the potential for clearer guidance on checking landlord compliance (see recommendation 1) and how to report concerns. This aims to improve tenants’ awareness of RSW’s role in safeguarding housing management and lettings standards in Wales.

Strengthening partnerships with tenant advocacy groups and community organisations to improve outreach and tenant rights awareness

Closer collaboration with organisations such as Shelter Cymru and TPAS would enhance information-sharing, signposting, and tenant engagement. This could include exploring appropriate access to relevant RSW data, where legally permissible, to support tenant advocacy services in providing accurate advice and assisting tenants in verifying landlord compliance.

Database and public register

Improving integration between RSW’s database and local authority database systems

To facilitate real-time data-sharing and compliance tracking. This would reduce delays in enforcement action, improve information accuracy, and avoid duplication and inconsistencies in data management across different systems.

Resourcing and enforcement support

Reviewing funding mechanisms to ensure local authorities have access to dedicated resources for PRS enforcement

With an emphasis on proactive rather than reactive enforcement. Respondents noted the current retrospective funding model does not sufficiently support planned enforcement activity to support targeted compliance monitoring, intelligence-led investigations, and enforcement action against unregistered landlords. To ensure financial support for proactive enforcement would improve regulatory outcomes and reduce reliance on reactive interventions.

Training and development

Expanding CPD training topics

Incorporating mental health awareness, tenant vulnerability, and legal compliance responsibilities for landlords and agents as examples. To ensure course content is updated regularly in response to legislative changes and sector needs.

Recognising equivalent CPD qualifications from external professional bodies

To avoid duplicative training costs for agents already subject to mandatory CPD requirements. To reduce duplicate training costs and administrative burdens for landlords and agents while maintaining regulatory standards and requirements.

Strategy and policy review

Establishing a structured policy review process

To ensure that RSW’s ‘Enforcement Policy’ and ‘Memorandum of Understanding’ with local authorities are reviewed and updated at defined intervals. This would ensure ongoing alignment with evolving legislation, enforcement practices, and best practice in housing regulation.

Developing a formal strategic corporate plan for RSW

Outlining long-term objectives, governance structures, and enforcement priorities. A clear strategic framework and strategy document aims to improve accountability, transparency, and alignment with Welsh Government housing policy objectives.

[1] Welsh Government (2016) Evaluation of Rent Smart Wales: Baseline Evaluation Report. November. [Accessed 18 September 2024].

[2] Welsh Government (2018) Evaluation of Rent Smart Wales: Implementation and Delivery Final Evaluation Report. June. [Accessed 18 September 2024].

Report author: RHE Global (2025)

Views expressed in this report are those of the researchers and not necessarily those of the Welsh Government.

For further information please contact:
Becca McEwan
Social Research and Information Division
Welsh Government
Cathays Park
Cardiff
CF10 3NQ

Email: HousingResearchTeam@gov.wales

Social research number: 35/2025
Digital ISBN: 978-1-83715-617-7