Welsh legislation banning fees to tenants will come into force on September 1 after receiving Royal Assent.
At an official sealing ceremony today (Wednesday 15 May), the Renting Homes (Fees etc) (Wales) Bill became an Act of the Assembly. First minister Mark Drakeford is pictured with housing and local government minister Julie James at the ceremony.
The Act makes it an offence to charge a tenant any payment that is not specified as a ‘permitted payment’ by the legislation. This means tenants cannot be charged for things like an accompanied viewing, receiving an inventory, signing a contract, or renewing a tenancy. Welsh Government estimates the Act will save tenants almost £200 per tenancy.
Letting agents and landlords will only be permitted to require a payment for rent, security deposits, holding deposits, a payment in default (when a tenant breaches a contract), and payments in respect of council tax, utilities, a television licence, or communication services.
The Act will cap holding deposits, paid to reserve a property before the signing of a rental contract, to the equivalent of a week’s rent and create provisions to ensure their prompt repayment. It will also give the Welsh Government the power to limit the level of security deposits in future if it wants.
Julie James said:
‘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.
‘This important legislation will come into force on September 1 this year, to balance the need for landlords and agents to make adjustments to their business models with the need for these changes to come into force as soon as possible.’