The Renting Homes (Fees etc.) (Wales) Act 2019 (Transitional Provision for Assured Shorthold Tenancies) Regulations 2019

EXPLANATORY NOTE

(This note is not part of the Regulations)

The Renting Homes (Fees etc.) (Wales) Act 2019 (“the Act”) prohibits a landlord, letting agent or any other person from requiring a prohibited payment to the landlord, letting agent or any other person—

(a) in consideration of the grant, renewal or continuance of a standard occupation contract, or

(b) pursuant to a term of a standard occupation contract which purports to require the payment to be made.

Payments are prohibited unless they are permitted under Schedule 1 to the Act. The Act also makes provision about holding deposits and in relation to requirements to publicise certain fees charged by letting agents.

Regulation 3 makes transitional provision so as to apply Parts 1 to 5 and 7 of the Act to an assured shorthold tenancy under Part 1 of the Housing Act 1988 (“the 1988 Act”). The transitional provision made in respect of section 20 of the Act in regulation 3(d) restricts a landlord of a dwelling that is subject to a standard occupation contract from giving a notice under section 21(1)(b) or (4)(a) of the 1988 Act (“section 21 notice”) in relation to the dwelling if the landlord has required a prohibited payment and, as a result of that requirement, a payment has been made but not repaid. Similarly, if a holding deposit paid in relation to a standard occupation contract has not been repaid and the circumstances are such that the failure to repay the deposit amounts to a breach of the requirements of Schedule 2 to the Act, a section 21 notice may not be given.

Under the Renting Homes (Wales) Act 2016 (“the 2016 Act”) an assured shorthold tenancy converts to a standard occupation contract by virtue of section 240 of, and Schedule 12 to, the 2016 Act. The 2016 Act makes provision about tenancies and licences which confer the right to occupy a dwelling as a home, including provision establishing two kinds of contract for the purpose of renting homes. A “dwelling” is defined in section 246 of the 2016 Act as a dwelling which is wholly in Wales. The Act follows the 2016 Act definition of “dwelling”, therefore, these Regulations do not apply to an assured shorthold tenancy of a cross border property (i.e., a dwelling which is not wholly in Wales).

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, it was not considered necessary to carry out a regulatory impact assessment as to the likely costs and benefits of complying with these Regulations.