The government in Wales has launched its formal consultation on a Welsh letting fees ban in preparation for legislation, with a deadline for agents and landlords to respond of 27th September.
Once the consultation process finishes, it expects to bring forward a Fees Charged to Tenants Bill, most likely next year.
Wales has already gone several steps further than other parts of the UK in reforming the private rental market following its launch of Rent Smart Wales, its compulsory licensing system for landlords and agents.
In its consultation document the Welsh government criticises agents for not supplying tenants with a breakdown of the services they charge for and instead charging flat fees. But although this makes it easier for tenants to compare costs between different agencies, “It lacks transparency” the document says.
Welsh letting fees ban
Its move to ban fees has been influenced by housing charity Shelter Cymru, which last year released a report on the Welsh private rental market called “Letting go: why it’s time for Wales to ban letting agents’ fees”.
In it the charity said fees charged to tenants ranged from £39.99 to £480 and that a third of tenants in Wales pay £200 or more in fees to begin a tenancy, on top of a month’s rent in advance and a month’s rent deposit.
It also carried out a mystery shopping exercise which found that half of Welsh agents did not display their lettings fees clearly.
“I believe the time has come to ask serious questions about the future ability of anyone to charge fees to tenants when they enter into a tenancy,” says Carl Sargent, says the Welsh government’s Cabinet Secretary for Communities and Children.
“I want to know the extent of the fees charged, what those fees cover and understand the implications of the removal of these fees for letting agents, landlords, tenants and any third parties involved in the private rented sector.
“I encourage everyone with an interest to participate in this consultation, which will help to inform what fees, if any, can be charged in the future.”
The Welsh government also says that 15% of all housing stock is now in the hands of private landlords, and that there are approximately 1,000 high street agents operating within its borders.”
If you’re a Welsh landlord or agent, add your thoughts to the consultation here.
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