Law to ban letting fees receives Royal Assent
A new law to ban letting fees in Wales has been given Royal Assent by Her Majesty the Queen.
At an official sealing ceremony held yesterday, the Renting Homes (Fees etc.) (Wales) Bill became an Act of the Assembly.
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 such things as an accompanied viewing, receiving an inventory, signing a contract, or renewing a tenancy.
It is estimated 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, should it wish to use it in the future, to limit the level of security deposits.
Housing Minister and Local Government Minister Julie James yesterday 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.
Latest News from
Welsh Government boosts support for valued charities and third sector organisations in Wales05/03/2021 11:05:00
The Welsh Government is once again backing volunteers, charities and third sector organisations in Wales who have played a vital role in response to Covid-19, with additional funding support to help meet their needs.
Town Centres in Wales to benefit from £15.2 million placemaking fund05/03/2021 09:05:00
It’s all part of Welsh Government's £110 million town centre regeneration programme, Transforming Towns.
Business rates holiday extended for 12 months04/03/2021 14:05:00
The rates holiday for the retail, leisure and hospitality sectors in Wales will be extended for a further 12 months, the Finance Minister Rebecca Evans yesterday announced.
Health Minister outlines improvement plans for Betsi Cadwaladr University Health Board04/03/2021 11:05:00
A new Targeted Intervention framework for the Betsi Cadwaladr University Health Board has been published following its de-escalation from special measures in November last year.
Additional funding for hospitality, leisure and tourism businesses04/03/2021 10:05:00
The Welsh Government yesterday announced a further £30 million for hospitality, leisure and tourism businesses affected by ongoing coronavirus restrictions.
More pupils to have opportunity to return to schools before Easter04/03/2021 09:05:00
The Education Minister, Kirsty Williams, has announced plans for more pupils in Wales to have the opportunity to return to the classroom ahead of the Easter break.
A Budget to protect public services and boost Wales’ economy03/03/2021 14:05:00
Finance Minister Rebecca Evans has unveiled a Final Budget with plans to protect public services and the Welsh economy, providing timely support to protect lives and livelihoods in the months ahead.
Transport Minister rallies north Wales community against plans to weaken rail services03/03/2021 11:05:00
Minister for Economy, Transport and North Wales Ken Skates has called on community leaders in north Wales to rally support in opposing plans which, if selected, would be detrimental to the region’s rail commuter experience and cross border connectivity.
Wales aims to become world number one recycler as it announces Circular Economy strategy03/03/2021 09:05:00
Welsh Government yesterday published an ambitious strategy to support a green recovery in Wales by transitioning into a ‘circular economy’, as we deal with the triple challenge of the pandemic, climate change and Brexit.