Landlord letting fees banned in Wales to help tenants

A ban on letting fees in England came into force on 1 June

A ban on landlord letting fees has come into force in Wales.

The new law aims to make the process simpler and fairer for tenants and will save them an average of almost £200 per tenancy, the Welsh Government says.

They now cannot be charged for services such as an accompanied viewing, receiving an inventory, signing a contract or renewing a tenancy.

It also gives the Welsh Government the power to limit the level of security deposits in future.

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Letting agents and landlords are now only permitted to require a payment for rent, security deposits, holding deposits, a payment in default (when a tenant breaches a contract), and payments related to council tax, utilities, a television licence or communication services.

Fixed penalty notices of £1,000 may be issued against anyone seeking a prohibited payment and landlords could lose their licence if prosecuted.

The Residential Landlords Association warned a fees ban could see rent charges increase, or agents opting for certain tenants who may not need as much help for their application.

Douglas Haig says the changes may mean agents avoid tenants who are on universal credit or from overseas

Douglas Haig, director for Wales, said: "Agents do spend quite a lot of time helping those who find it more challenging to go through a standard referencing process, some of those people might be on low incomes or from overseas and not used to the system.

"Because fees are being banned agents are more likely to say: 'I'm going to choose that person because they understand the system, they've got a good paying job'... over someone who may be presenting under universal credit which is a very complex system.

"That's really one of our bigger long-term concerns is in a hot rental market with under-supply of rental properties, that landlords and agents have the ability to pick and choose who goes in there before they even get to the point of being able to apply for the tenancy."

Housing and Local Government Minister Julie James said: "A significant proportion of people in Wales live in private rented housing, and it is vital that they can be confident they are getting a fair deal.

"I want renting privately to be a positive choice which is accessible to everyone."

A ban on lettings fees in England came into force in June.