The Welsh government has rejected a proposal to hand two months of rent relief to tenants issued with no fault eviction, known as a Section 173 notice.
The government said giving two months of rent relief would increase the risk of homelessness by persuading tenants to delay securing alternative accommodation.
It would also undermine the policy intention of the six month notice period.
The Cabinet Secretary for Housing and Local Government, Jayne Bryant, sent a letter to the Senedd’s Local Government & Housing Committee confirming the decision.
Tim Thomas, policy officer at Propertymark, said: “We are pleased that the Welsh government agreed with our concerns and have rejected the proposal.
“Propertymark have campaigned against this proposal right from the start. We immediately wrote to the Cabinet Secretary with our concerns and were one of the groups that took part in discussions with Welsh government officials.
“We used the opportunity to highlight to the Welsh government that if this proposal went ahead, it could result in less supply of privately rented accommodation in Wales, with the propensity of increased rents for tenants.
“This was not a practical solution for tenants, especially for those who are in receipt of benefits and pay their rent through managed payments.
“The proposal also gave no regard for the ongoing costs landlords have in sustaining tenancies including mortgage and insurance costs.
“There have been significant changes in recent years to legislation in Wales and we are keen to continue to work with the Welsh government to ensure these bed-in and landlords, tenants and agents have time to understand and apply the existing rules before further reforms are looked at.”