Social and private tenants will be protected from eviction for at least three months under an emergency bill to be introduced by Welsh Government in response to Coronavirus.
A package of measures will also give mortgage borrowers a three-month payment holiday.
The Welsh Government has agreed that measures being developed by the UK Government, to suspend evictions from social or private rented accommodation will apply to Welsh tenants.
New protection under the emergency bill will mean:
- Landlords will be unable to start possession proceedings to evict tenants for at least a three month period during the crisis
- The three-month mortgage payment holiday will be extended to Buy to Let mortgages to protect landlords.
The announcement follows more action by the UK Treasury late on Friday that will see the Local Housing Allowance (LHA) restored to the 30th percentile at a cost of £1 billion.
The measure reverses the effects of a four-year freeze in benefits that has led to rising shortfalls between rents and LHA rates and contributed to evictions and homelessness.
Housing minister Julie James said:
‘We are taking action to protect Welsh tenants and landlords affected by Coronavirus. Whilst it is right that tenants in Wales benefit from this measure, we need to do more to address the underlying issue of possession notices being issued in the first place. We will continue to do all we can to support tenants in Wales.
‘It is vital that no renter in Wales will be forced out of their home during this difficult and unprecedented time. These measures will alleviate pressures on landlords to meet mortgage payments and will further reduce pressure on tenants as a result.’