Wales’ flagship landlord licensing body is facing renewed criticism as it approaches its 10-year anniversary.

James Evans, MS for Brecon and Radnorshire, has warned that Rent Smart Wales - the compulsory registration and licensing scheme for landlords and agents - “still isn’t fit for purpose” a decade after its launch.

Rent Smart Wales was introduced by the Welsh Government in November 2015. It requires landlords to register their properties, obtain licences and undertake mandatory training. The scheme is run by Cardiff Council on behalf of all Welsh local authorities.

But Mr Evans said he continues to receive complaints from landlords across Powys about poor communication, a difficult-to-navigate IT system and a lack of practical support when dealing with non-paying tenants or serious property damage.

He challenged ministers in the Senedd earlier this year, raising concerns that the organisation collects “millions of pounds” in fees while offering “little clarity” about how that money is spent.

Rent Smart Wales describes itself as a “non-profit, self-funding service”. A 2021 report by the National Residential Landlords Association (NRLA) suggested the scheme may generate more revenue than it uses. The Welsh Government confirmed it had commissioned an independent evaluation, published in May 2025, which included recommendations to strengthen scrutiny. An action plan in response is still being developed.

Sector bodies have also raised concerns. A report by Propertymark highlighted “unhelpful communication” and a system “difficult to navigate”, while trade publication The Negotiator reported that agents wanted Rent Smart Wales to “be less abrasive” towards compliant landlords.

Landlords currently pay £102 for registration, £327 for a standard licence, and more than £100 for periodic training courses.

Mr Evans said: “10 years on, Rent Smart Wales still isn’t fit for purpose. Landlords tell me they pay hundreds of pounds in fees, yet when they face rent arrears, antisocial behaviour or properties being destroyed, Rent Smart Wales is nowhere to be seen. Welsh Labour created this system, but it provides regulation without support, pressure without partnership and cost without accountability. I challenge Welsh Government to publish a clear set of accounts for Rent Smart Wales alone, showing a breakdown of its income, costs and surplus and be fully transparent to the Welsh public.”

He continued: “I previously challenged Welsh Government on how much surplus Rent Smart Wales generates and where that money goes, but still no answers. If a government-backed body is taking millions from the sector, then full transparency is not optional, it is essential.

“The independent evaluation published this year listed clear failings and recommendations. That was months ago, and still no action plan has been presented. Every day of delay means more landlords left struggling and more tenants stuck in a broken system.

“The vast majority of landlords are good, they want high standards, safe homes, and proper enforcement. But right now, they see Rent Smart Wales as a hindrance not a help. We need urgent reform, better transparency, and a system that actually helps drive improvements rather than just collecting fees.”

A spokesperson for the Welsh Government said: “Rent Smart Wales plays a vital role in improving standards and professionalism in the private rented sector. Following an independent evaluation earlier this year, we’re working closely with our partners in the sector to develop a comprehensive action plan to enhance transparency, usability, and support of the service.”

The government added that Rent Smart Wales has been working to tackle challenges faced by landlords and agents and is committed to ongoing improvements. Operating on a cost-recovery basis, Rent Smart Wales reinvests all income from registration and licensing into administering and enforcing the scheme. The body is also upgrading its IT system and introducing clearer guidance to make processes more user-friendly.