Welsh Tenant Fee Ban likely for September 2019
Following the announcement recently of the tenant fee ban being passed this year, it now seems that Welsh landlords will be next in line to be affected by these new legislations.
First Minister Mark Drakeford recently met with 400 people at Cardiff University Students Union, where he revealed that the likelihood of the tenant fee ban being made law in Wales in September 2019 was high.
He went on to say that he was confident that the legislation would be passed before the next academic year, and that it is expected to be almost identical to the law recently passed in England.
Although the emphasis of his discussion concerned the impact of affordable housing for students and young people, there has long been a concern about the ‘widespread abuse’ of tenants on fees, with some landlords taking advantage of the system and grossly overcharging tenants.
What does it mean?
The new law means that landlords in Wales, as is already agreed for England and Scotland, will no longer be able to charge for administrative items which include referencing fees and credit checks, check-in and check-out inventories, deposit registration, administration and paperwork, such as guarantor forms and tenancy agreement signing.
All of these charges will now have to be picked up by the landlord instead of the tenant, at an average cost of £400.
We believe that once the law is passed in Wales, landlords will seek to recoup the additional fees agents will be forced to pass on to them via the rent.
There’s no doubt that both landlords and agents will need to be much more savvy in order to keep up, but we can all agree that high-quality service between landlords and agencies is still needed, and good, well maintained rental properties are still very much in demand.