Project requirements

The Welsh Government commissioned RHE Global to undertake an independent evaluation of Rent Smart Wales (RSW), the national registration and licensing scheme for landlords and letting agents in the private rented sector (PRS) in Wales. Introduced under the Housing (Wales) Act 2014, RSW was established to improve standards in the PRS, enhance professional practice among landlords and agents, ensure compliance with housing legislation and support tenants through better regulatory oversight. In particular, the evaluation aimed to assess:

• Whether RSW had delivered its core objectives around professionalisation, compliance and tenant protection

• How the scheme was perceived and experienced by key stakeholders: landlords, agents, tenants, local authorities and RSW staff

• The operational effectiveness of registration, licensing and enforcement processes

• Opportunities for improving the scheme’s governance, communications, training and partnership working.

Project delivery

The evaluation was delivered by RHE’s specialist housing team with particular expertise in housing regulation, policy, research and local authority service delivery. The methodology was designed to meet government research criteria and good practice in evaluation principles. A mixed-methods approach was used, comprising:

• Quantitative surveys: Over 2,600 landlords and agents responded to a nationally promoted online survey, providing robust data on licensing experiences, registration processes, compliance behaviours and perceptions of RSW’s effectiveness. A separate tenant survey (74 participants) gathered views on their perception of  RSW, general housing quality and rights awareness.

• Qualitative research: Five focus groups were held with landlords, agents, tenant advocacy organisations and local authority enforcement officers. These explored in-depth perceptions of the scheme, operational challenges and practical experiences of engagement with RSW.

• One-to-one interviews: Structured interviews were conducted with senior RSW staff to understand service development, delivery challenges and strategic direction.

• Secondary data analysis: RSW’s operational datasets were analysed to assess trends in compliance, enforcement activity (e.g. FPNs and prosecutions) and registration and licensing outcomes, including breakdowns by region where possible.

Project outcomes

The evaluation report highlighted several significant findings:

• Positive impact on agent compliance and sector professionalism: Letting agents were found to have responded well to the scheme, with agent audits identified by local authorities and RSW staff as being a strong driver of compliance. Audits were having a positive behavioural effect, and commercial agents managing large portfolios showed improved awareness of regulatory responsibilities.

•  Inconsistent landlord compliance and limited tenant awareness: While many compliant landlords saw little disruption from the scheme, others, particularly those managing small portfolios or operating informally, remained unclear of registration and licensing requirements. Tenant engagement with RSW was low, with many unaware of its role in housing regulation or the fact that their website facilitated  the checking of a landlord’s status.

• Enforcement variation across Wales: The evaluation found wide regional variation in the use of fixed penalty notices (FPNs) and prosecutions. While the South Wales region recorded the highest volume of enforcement activity, proportional analysis showed other regions (e.g. West Wales) had higher rates relative to the number of rental properties. Many local authorities cited limited resources and inconsistent funding as barriers to proactive enforcement.

• Operational effectiveness of registration and renewals: The licensing and registration system was largely considered efficient and well-managed, with most landlords and agents navigating renewals successfully. However, the distinction between registration and licensing remained confusing for some landlords; stakeholders called for clearer guidance, templates and online support tools.

• Governance and policy alignment: Stakeholders raised concerns about inconsistencies in how RSW policies such as the enforcement policy and memorandum of understanding with local authorities were reviewed and updated (e.g. frequency of review).

The evaluation made 20 evidence-based recommendations, including:

• Improving access to data and systems: Local authorities, tenant organisations and landlord groups reported the need for wider access to landlord compliance data, enforcement action, dwelling-level EPC, housing and safety condition data (gas/electrical safety) audit ratings and rent levels, to make informed choices and aid enforcement. Improved data-sharing with frontline services such as Housing Options and Trading Standards teams would also help local authorities respond more effectively to issues in the PRS.

• Strengthening compliance and enforcement: There was a reported need to review whether current penalties such as FPNs are strong enough to deter non-compliant landlords, especially those who repeatedly fail to comply. Exploring alternative enforcement tools, such as improvement notices, and wider use of licence conditions controls and remedies could offer a more balanced approach for less serious breaches. Councils would also benefit from more collaboration between RSW and LAs on a nationwide basis to access and cross-reference Council Tax data to help identify unregistered landlords. Tightening the rules around reapplying after licence revocation would assist in closing potential enforcement ‘loopholes.’ A clearer, more consistent enforcement policy, a through review and the provision of consistency training would also support local authorities in applying enforcement fairly and effectively across Wales.

• Registration and licensing support: Some landlords, especially those with smaller portfolios, continue to find the licensing and registration system confusing. Accessible guidance provided through simplified step-by-step guides for landlords, together with tutorial aids and expanded public access support services could help improve take-up and compliance. Reviewing how landlords update their details would also reduce the risk of missed renewal notices or out-of-date entries remaining on the register.

• Improving engagement and tenant communication: RSW’s compliance messages could be more constructive and easier to understand, helping landlords take action without feeling penalised. Tenants would benefit from clearer guidance on how to check if their landlord is registered and what to do if something goes wrong. Closer working with organisations like Shelter Cymru and TPAS could also strengthen RSW’s outreach, especially to vulnerable tenants or those unaware of their rights.

• Resourcing local enforcement teams: Local authorities highlighted the need for more consistent funding to support planned enforcement rather than relying on retrospective claims. Dedicated resources would make it easier to investigate non-compliance and carry out strategically led enforcement.

• Expanding training and CPD recognition: Landlords and letting agents welcomed current training but called for more coverage of emerging issues, compliance orientated training, as well addressing discrimination, hate crimes, and mental health awareness. Recognising equivalent training from external accredited landlords bodies CPD programmes would also reduce unnecessary duplication and lower costs for landlords and agents who already meet industry standards elsewhere.

• Governance and strategic oversight: Stakeholders supported regular reviews of key documents such as RSW’s Enforcement Policy and Memorandum of Understanding with local authorities, to ensure they stay up to date with legal and policy changes. A clear, public-facing strategic plan would also improve transparency and help align RSW’s work with current Welsh Government housing priorities.

The Rent Smart Wales evaluation provided an evidence-based assessment of one of the UK’s most advanced PRS registration schemes. It confirmed RSW’s role in improving agent standards and professionalising the sector, while highlighting areas for development in compliance, enforcement, tenant participation and governance. We hope to see the findings influence policy and regulatory change in Wales and generate wider interest across the UK. Thankyou to all those that gave their time to participate in the evaluation of Rent Smart Wales, your insights will be influential in shaping future proposals around landlord registration in Wales and form part of broader discussions around PRS reforms, nationally and regionally. 

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