Welsh fee ban passes into law

On 15 May the Renting Homes (Fees etc.) (Wales) Bill received Royal Assent. It is now an Act and will come into force on 1 September 2019.

Motehr and daughter looking in branch window

The Renting Homes (Fees etc.) (Wales) Act will ban most fees charged to tenants. Letting agents and landlords will not be able to require tenants to make a payment if it is not listed as a ‘Permitted Payment’ under the Act.

Permitted Payments are:

  • Rent
  • Security Deposit
  • Holding Deposit (capped at one week’s rent)
  • Default Fees
  • Utilities (electric, gas or other fuel, water, sewerage and Green Deal)
  • Council Tax
  • Television Licence
  • Communication Service

The Act does not currently specify a cap on Security Deposits or Default Fees.

The legislation will apply to Assured Tenancies (including an Assured Shorthold Tenancy or AST) entered into after the legislation comes into force. When the Renting Homes (Wales) Act 2016 comes into force, all new tenancies will be Standard Occupation Contracts. All pre-existing Assured Shorthold Tenancies will also be converted into Standard Occupation Contracts.

Propertymark is expecting further guidance from the Welsh Government to be published imminently.

It is essential that agents get to grips with this legislation and understand the impact on their business, making the preparations that they need well in advance of 1 September. The experience that agents operating in other parts of the UK are currently going through demonstrates that this is a highly complex area with many areas of uncertainty and agents need to draw on the support of their professional body.

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David Cox Chief Executive | ARLA Propertymark
The private rented sector now accounts for 13% of all housing in Wales. This legislation brings clarity which will help to improve the reputation of the sector overall, and also provide greater confidence that tenants are getting a fair deal. I want private renting to be a positive choice that is accessible to everybody.
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Julie James AM Housing Minister and Local Government

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