Tuesday 3 September 2019

Tenant Fee Ban now in force

The Renting Homes (Fees Etc.) (Wales) Act 2019, banning landlords and letting agents from charging fees to tenants, came into effect this week. It is now illegal for tenants to be charged by landlords or letting agents in Wales in order to set up or renew a tenancy in the private rented sector.

The new law will not just mean a ban on letting fees, but also the majority of other upfront fees payable by tenants to rent a property in Wales.

The Welsh government estimates the new law will save tenants, on average, close to £200 per tenancy.
However, the cost of referencing, credit checking etc will now fall on landlords and agents and as an increase in rents is likely as landlords and agents loook for ways to replace this lost income. After all they are not charities. 

Landlords and letting agents re now only allowed 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.


One industry pundit 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.”

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

10 comments:

  1. Funded Trader was founded for one reason and one reason only. To FINANCIALLY EMPOWER Traders and help them to make an INCOME doing what they LOVE. The firm was established by Traders for Traders who understand that a lot of people spend tons of money on expensive Trading courses and perfecting their skills but unfortunately lack the funds to actually take their newly acquired skills and actually make a living from it look at this website fully funded trading account and get quality results.

    ReplyDelete
  2. Thanks for sharing the best information and suggestions, If you are looking for the best Land Capability Assessment South Gippsland, then visit The 4 Spheres. Highly energetic blog, I’d love to find out some additional information.

    ReplyDelete
  3. Funded Trader was founded for one reason and one reason only. To FINANCIALLY EMPOWER Traders and help them to make an INCOME doing what they LOVE For more information click this website forex funding for traders and get quality results.

    ReplyDelete
  4. I always dream about my home, recently I full fill my dream and I bought a home. A mortgage loan helped me to fulfill my dream. Mortgage Agents Whitby helped me a lot to take this loan you also can try it.

    ReplyDelete
  5. A home equity loan, also known as a home equity installment loan or a second mortgage, is a type of consumer debt. Home equity loans allow homeowners to borrow against the equity in their home. You can borrow a home equity loan to fulfill your regular needs. Home Equity Loan London

    ReplyDelete
  6. 소액대출도 쇼핑하라 모든 무직자대출 대출 비교해보자 모바일대출과 자동차담보대출을 내맘대로 알아보는 대출몽이 있으니까 더 많은 정보를 원하시면 여기를 클릭하세요 더 많은 정보를 원하시면 여기를 클릭하세요 소액대출.

    ReplyDelete
  7. Yes, Really very nice information, this information is excellent and needy for everyone. I am very thankful for you for providing this kind of information. Palo Alto townhomes for sale

    ReplyDelete
  8. This comment has been removed by the author.

    ReplyDelete
  9. Such an helpful post you have shared here about Agent Property. I got some helpful knowledge from this post. Thanks for sharing such post. Keep it up. Port Alberni Real Estate Agent.

    ReplyDelete
  10. I am definitely enjoying your website. You definitely have some great insight and great stories Solar Panels Parker.

    ReplyDelete