Law News,Tenant Fees Ban

Welsh Tenant Fees Ban to come into Force on 1st September

Rose Jinks - May 20, 2019

The Welsh tenant fees ban will come into force on 1st September 2019 for all private rental properties in the country, after it received royal assent last week. 

From 1st September, landlords and letting agents across Wales will no longer be able to charge tenants fees to set up, renew or continue a standard occupation contract, except those explicitly permitted by the Renting Homes (Fees etc.) Bill.

The Welsh tenant fees ban will prohibit landlords and agents charging for the following tasks, amongst others:

  • Accompanied viewings
  • Inventory charges
  • Signing contracts
  • Tenancy renewals

Many landlords may not yet be familiar with standard occupation contracts, but they will replace Assured Shorthold Tenancies (ASTs) in Wales when the Renting Homes (Wales) Act 2016 is introduced – possibly later this year.

The Welsh tenant fees ban means that it will be illegal for landlords and agents to charge tenants anything other than permitted payments, which are: rent, security deposits, holding deposits, utilities, communication services, Council Tax, Green Deal charges, and default fees.

Under the new law, holding deposits will be restricted to one week’s rent, with provisions to ensure their prompt repayment. 

The National Landlords Association (NLA) hopes that the Welsh Government looks closely at the impact of England’s planned five-week security deposit cap and the negative impact that this may have on vulnerable tenants.

The Welsh tenant fees ban will be introduced just three months after the similar Tenant Fees Act is implemented across all private tenancies in England, on 1st June 2019.

To keep up to date with both the English and Welsh tenant fees ban, make sure to regularly check the dedicated page on our site, where you will find the latest information on these legal changes: https://www.landlordnews.co.uk/category/tenant-fees-ban/

Landlords, what are your thoughts on the upcoming tenant fees bans across England and Wales?