Law to ban letting fees in Wales given Royal Assent

The Act makes it an offence to charge a tenant any payment that is not specified as a ‘permitted payment’ by the legislation.

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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 today (15th May), the Renting Homes Bill became an Act of the Assembly.

The Act officially 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 is also said to give 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 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 provide greater confidence that tenants are getting a fair deal.

“I want private renting to be a positive choice that is accessible to everybody.

She added: “This important legislation will come into force on 1st September this year, to balance the need for landlords and agents to adjust their business models with the need for these changes to come into force as soon as possible.”

Pictured: Minister for Housing and Local Government Julie James and First Minister Mark Drakeford.

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