Renting in Wales: Concern over cost of tenancy changes 20 May 2013 Last updated at 07:05 Changes to how social and private homes are rented in Wales may cost £45m, says a landlords' organisation which claims it is better spent building houses. The Welsh housing minister is expected to announce plans to simplify tenancy agreements. It is understood Carl Sargeant wants to make it easier for tenants and landlords to know their rights. But the Residential Landlords Association (RLA) said the changes will significantly increase their costs. Local authority-owned rented properties currently operate under secure tenancies, which allow tenants to live in their properties indefinitely. Private rented and housing association tenants, however, are subject to assured shorthold tenancies. The millions that would be spent on the Welsh government's proposals are simply too high at a time when that money could be much better spent on building more homes End Quote Douglas Haig RLA director for Wales These give tenants the right to occupy a property for a fixed period of time, but at the end of this the landlord has the right to terminate the tenancy. It is understood that proposals being published by Mr Sargeant later on Monday will bring housing association properties in line with local authority-owned homes - meaning they will both operate under the secure tenancy regime. The RLA said private rented homes would be on a yet to be defined "standard contract." It believes the reforms will cause a significant rise in legal and administrative costs for landlords. "The laudable intention of the government's proposals, namely simplification, are ones which we wholeheartedly share," said Douglas Haig, RLA director for Wales. In our view, tenure reform can be achieved in a less radical way and without the huge upheaval and expense involved for landlords, tenants and others involved in all sectors of rented housing including the need to re-learn and re-skill across the board as a result of a completely new system. He added: "The millions that would be spent on the Welsh government's proposals are simply too high at a time when that money could be much better spent on building more homes." Anti-social behaviour In April, the Law Commission, the statutory body which reviews the law, recommended improvements to the legal framework governing rented housing in Wales. It suggested replacing many different forms of rental contract with just two types. Under the proposals, Welsh ministers would ensure the use of contracts that would set out clearly the rights and responsibilities of landlords and tenants and the circumstances under which either party can bring the contract to an end. The proposals would also help people faced with cases of domestic violence or housing-related anti-social behaviour. Following the commission's recommendations, Mr Sargeant said: "These proposals will provide a fair, simple and efficient legal basis for renting a home in Wales. The Welsh government will take forward the recommendations with the aim of making the law easier for tenants and landlords to understand. Doing this will create a more effective rented housing system in Wales. The Welsh government said Mr Sargeant will set out "ambitious legislative plans to improve arrangements for renting homes in Wales" with the launch of the Renting Homes White Paper consultation on Monday.