Recognising the pressure the rising cost-of-living is placing on already struggling household budgets, the government said it is committed to helping tenants by delivering adequate housing and access to fair and affordable private renting.

Launching the green paper consultation, Julie James MS, minister for climate change, said: “This Green Paper consultation is to support and develop our Programme for Government’s commitment, and the commitment in the Co-operation Agreement with Plaid Cymru, to ‘publish a White Paper to include proposals for a right to adequate housing with a view to establishing (a) system of fair rents (rent control) in the private rental market so that they are affordable for local people on local incomes and (b) new approaches to making homes affordable for those on local incomes’.

“Whilst there are international examples and academic work on the concept of housing adequacy and fair rent measures, these are not directly transferable to Wales and the Welsh housing sector.

“The Green Paper is a call for evidence so that we can better understand the rental market in Wales, in particular what factors influence landlord behaviour in setting rents and taking on tenants and what do tenants consider is an affordable and adequate property.”

The consultation will run over the Summer until 15th September, and a number of workshops will also be held around Wales with stakeholders, to ensure that everyone has the opportunity to give their views.

Ms James added: “Increasing housing availability is critical to addressing rising rent increases, which is why we have committed to delivering 20,000 low carbon social homes for rent over the next five years. However, I am keen that all tenures work more cohesively together in the future, and therefore we are keen to look at how the supply of new build affordable private rental properties could be delivered.

“I would like to thank the external stakeholder panel members who have been involved in the development of this Green paper, and I look forward to their continued involvement in the Autumn once the consultation closes.”

Propertymark said it does not agree with rent controls as they “disincentivise investment” and “lead to low stock levels and reduced property standards”.

“We have also seen that they inflate advertised rents which is most recently evident in Scotland,” Timothy Douglas, head of policy and campaigns at Propertymark added.

“Propertymark does not agree with rent controls as they disincentivise investment and lead to low stock levels and reduced property standards. We have also seen that they inflate advertised rents which is most recently evident in Scotland.

“The failures of rent controls have also been evidenced time after time again across Europe, and the United States.

“We believe that there must be a clear focus on introducing measures that satisfy tenant demand and ease landlord costs in order to increase the number of properties to rent and buy across Wales.

“We all want to see a thriving, safe, and secure private rented sector in Wales, but in order to do this, the Welsh Government must ensure the shortage of housing is addressed and not inadvertently exacerbated.

“In recent years, tax and mortgage rate changes have squeezed the budgets of many landlords, and the shortage of housing supply fails to keep up with rising tenant demand, impacting rent levels, the cost of living, and the overall renting of property in Wales.

“We will continue to engage with the Welsh Government with these warnings and encourage agents operating in Wales to respond to the Welsh Government’s Green Paper.”