Campaigns Wales

Wales fees ban: regulations on default fees to come into force next week

Victoria Barker
Written by Victoria Barker

New regulations on the maximum allowable level of fees landlords in Wales can charge when a tenant defaults on their contract will come into force next week.

The tenant fees ban was introduced in Wales last September, as part of the Renting Homes (fees etc) (Wales) Act 2019. It has been rolled out in different stages.

The Renting Homes (Fees etc.) (Prescribed Limits of Default Payments) (Wales) Regulations 2020 will come into force on 28th April 2020.

What can be charged for replacing keys or changing the locks?

The new regulations mean that from 28th April, landlords in Wales will only be able to charge tenants for the actual cost of replacing keys, and the actual costs of changing, adding or removing a lock. (this can be evidenced via an invoice or receipt).

What can be charged for late payment of rent?

Landlords will still be able to charge for late payment of rent, but only after seven days-meaning nothing can be charged in respect of late rent before this. Landlords will be able to charge the Bank of England base rate, plus 3% on an APR basis. (the calculation formula can be found in the Explanatory Memorandum).

This differs to the situation in England, where under the Tenant Fees Act landlords can’t charge for late payment of rent until after a longer period of 14 days.

The Wales fees ban

Since Sunday 1st September 2019, when the fees ban was introduced in Wales, landlords entering into new tenancies have only been able to charge for rent, security deposits, holding deposits (though limited to one weeks rent), payments in default, payments in respect of council tax, payments in respect of utilities, tv licence payments and payments in respect of communication services.

About the author

Victoria Barker

Victoria Barker

Victoria is the Communications Officer for the RLA.

She is responsible for producing articles for our Campaigns and News Centre, the weekly E-News newsletter and media review, and creating social media content. She also contributes to our members magazine, Residential Property Investor.

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