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.