New regulations for landlords now in force in Wales
Mary-Anne Bowring 01/05/2020
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New regulations are now in force for landlords in Wales. The Renting Homes (Fees etc.) (Prescribed Limits of Default Payments) (Wales) Regulations 2020 came into force on 28 April and sets the maximum fee that landlords can charge if a tenant defaults on their rental contract. If a tenant doesn’t pay their rent, the new regulations set a limit on the amount which can be charged.
- Up to the end of a period of seven days from when the rent is due, zero can be charged.
- After the end of the period of seven days from due, 3% above the Bank of England base rate may be charged.
The formula for calculating the 3% plus base rate is: the aggregate of the amounts found by applying, in relation to each day after the due date for which the rent remains unpaid, an annual percentage rate of three per cent above the Bank of England base rate to the amount of rent that remains unpaid at the end of that day. The Renting Homes (Fees etc.) (Wales) Act 2019 came into force in Wales on 1 September last year, with the legislation being similar but not identical to the Tenant Fees Act 2019 in England. In Wales, landlords may now only charge tenants entering into new rental agreements for
- rent
- security deposits
- holding deposits of one weeks rent
- council tax
- utilities
- tv licence payments
- communication services or
- payments in default.
Replacement locks and keys
Replacement locks and keys Also with effect from 28 April, if tenants lose their keys and/or need their locks changed, landlords in Wales can only charge them for the actual cost of replacing keys and of changing, adding or removing a lock. They cannot levy an additional service charge for doing so, although they can pass on the charge for a contractor to do the work, as long as evidence of the additional cost is provided in the form of an invoice or receipt.
Landlords who are members of the Residential Landlords Association (RLA) can click here for guidance on the differences between the Welsh and English legislation, download a number of fee ban compliant documents, find out what charges can be made under the fee bans and read some practical tips on adapting to the new requirements. www.planetrent.co.uk Why not READ our Property Blog too at www.ringleypropertyblog.co.uk
Planetrent Properties
info@planetrent.co.uk
0208 0599 550 (for sales)
Under Offer: This term applies to a property where the landlord is considering an offer but remains on the market. It implies that further offers may still be considered until the landlord formally accepts or declines the current offer.
Let Agreed: This term indicates that a landlord has provisionally agreed to enter into a rental agreement with a prospective tenant, pending additional checks and referencing. It doesn't require the prospective tenant to have paid a holding deposit.
Let: This term signifies an established binding rental agreement between the landlord and tenant.
For both lettings and sales, the guidance addresses additional terms:
New On The Market: This term is used for a property not advertised since its last sale or rental. It should only be used for a brief period.
New Instruction: It applies to a property assigned to an agent for marketing recently, even if it was previously listed with another agent without being sold or rented.
New and Exclusive: This term refers to a property that is either new on the market or a new instruction, exclusively available through a specific agent or portal.
New Method of Sale/Let: This term is used when a property is being marketed for sale or rent using an alternative approach to the original advertisement, such as transitioning to an auction or sealed bid.
Reduced: This term indicates that a property's price has recently been reduced. The reduction should be genuine and comply with the Chartered Trading Standards Institute's guidelines on pricing practices.