Clwyd West MS Darren Millar is concerned that a new trend of claim farming is impacting tenants and landlords in Wales and called on the Welsh Government to take action against the practice.
Claim farming involves third party companies known as "claims farmers" or Claims Management Companies (CMCs), aggressively targeting tenants to encourage them to make legal claims against their landlord for repairs and compensation.
Speaking in yesterday's Business Statement in the Senedd, Darren warned that the trend, which started in big cities, is now becoming more prevalent in Wales.
Calling for a Welsh Government Statement on the matter, he said:
"It's been brought to my attention that there's a growing trend of 'claim farming' that is taking place against landlords in Wales.
"I'm very concerned that this is going to cause even further pressure in the housing market, meaning fewer properties will be available at affordable prices for rent.
"I'd like to know what the Welsh Government is doing about this particular issue in Wales, to make sure that we are protecting tenants and protecting landlords."
Responding, the Trefnydd (Business Manager) Jane Hutt MS said:
"This is something that I'm not aware of. Obviously, we work very closely with the private rented sector and Rent Smart Wales. It's something that I know the Cabinet Secretary for Housing and Local Government will be interested in, the point of any examples that you have that can be shared."
Speaking afterwards, Darren said:
"Wales is already experiencing a housing crisis and if these sorts of practices go unchecked, they could result in even fewer properties being available for rent.
"This is a serious problem which needs urgent attention by the Cabinet Secretary for Housing and I urge her to do everything she can to protect both landlords and tenants from this practice."
Ends
Watch Darren’s contribution in the Welsh Parliament below:
