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Renting Homes (Fees etc.) (Wales) Act 2019
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Payment in the event of default
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6(1)A payment that is required, under a standard occupation contract, to be made in the event of a default by the contract-holder is a permitted payment, but this is subject to sub-paragraph (3).
(2)In this paragraph, “default” means—
(a)a failure by the contract-holder to make a payment by the due date to the landlord, or
(b)a breach by the contract-holder of a term of the contract.
(3)In the case of a default to which sub-paragraph (4) applies, if the amount of a payment required in the event of the default exceeds the prescribed limit, the amount of the excess is a prohibited payment.
(4)This sub-paragraph applies to—
(a)a failure by the contract-holder to make a payment of rent by the due date to the landlord;
(b)any additional description of default which is specified by regulations.
(5)In sub-paragraph (3), the “prescribed limit” means a limit specified by, or determined in accordance with, regulations.
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