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Renting Homes (Fees etc.) (Wales) Act 2019

Changes over time for: Renting Homes (Fees etc.) (Wales) Act 2019 (Schedules only)

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Renting Homes (Fees etc.) (Wales) Act 2019 is up to date with all changes known to be in force on or before 26 May 2022. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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(as introduced by section 4)

SCHEDULE 1E+WPermitted Payments

RentE+W

1(1)A payment of rent under a standard occupation contract is a permitted payment.E+W

(2)But, subject as follows, if the amount of rent payable in respect of a relevant period (“P1”) is more than the amount of rent payable in respect of another relevant period (“P2”), the additional amount payable in respect of P1 is a prohibited payment.

(3)Where there is more than one relevant period other than P1, P2 is whichever one of those other relevant periods is the period in respect of which the lowest amount of rent is payable.

(4)In a case where the duration of one relevant period (P1) differs from that of another (P2), to determine—

(a)whether a prohibited payment has been made by virtue of sub-paragraph (2), and

(b)if so, the amount of the prohibited payment,

the following steps are to be taken.

  • Step 1 For each of P1 and P2, the applicable daily rate of rent (the “ADR”) is to be calculated (and in the case of an amount that is not a whole number of pennies, then rounded up to the nearest penny) by dividing the total amount of rent for the period by the number of days in the period.

  • Step 2 If there is no difference between the ADR for each period, there is no prohibited payment.

  • Step 3 But if the ADR for P1 differs from that for P2, determine which of the rates is the lower (the “lower ADR”) and which is the higher (the “higher ADR”).

  • Step 4 For whichever period in respect of which the higher ADR is payable, calculate the amount of rent that would have been payable for it if rent had been payable in respect of that period at the lower ADR.

  • Step 5 Calculate the difference between the amount of rent calculated under Step 4, and the amount of rent actually payable in respect of the period in which the higher ADR is payable.

    The resulting amount is a prohibited payment by virtue of sub-paragraph (2).

(5)Where—

(a)rent is payable monthly in respect of P1 and P2, or P1 and P2 are both periods calculated by reference to the same number of calendar months, and

(b)the amount of rent payable in respect of P1 and P2 is the same,

P1 and P2 are to be treated for the purposes of Step 2 in sub-paragraph (4) as having the same ADR.

(6)No account is to be taken of any difference between the rent payable in respect of P1 and another relevant period to the extent that it results from a permitted variation of the rent.

(7)In sub-paragraph (6), “permitted variation”, in relation to rent payable under a standard occupation contract, means a variation made—

(a)by agreement between the landlord and the contract-holder;

(b)pursuant to a term in the contract which provides for variation of the rent under the contract;

(c)by or as a result of an enactment.

(8)In this paragraph—

(a)enactment” means an enactment (whenever enacted or made) comprised in, or in an instrument made under—

(i)an Act of Parliament,

(ii)a Measure or an Act of the National Assembly for Wales, and

(b)relevant period”, in relation to a standard occupation contract, means any period in respect of which a payment of rent falls to be made.

Commencement Information

I1Sch. 1 para. 1 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

Security depositE+W

2(1)A payment of a security deposit is a permitted payment.E+W

(2)In this Act, “security deposit” means money paid as security for—

(a)the performance of any obligations of a contract-holder, or

(b)the discharge of any liability,

arising under or in connection with an occupation contract.

(3)But if the amount of the security deposit exceeds the prescribed limit, the amount of the excess is a prohibited payment.

(4)In sub-paragraph (3), the “prescribed limit” means a limit specified by, or determined in accordance with, regulations.

Commencement Information

I2Sch. 1 para. 2 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

Holding depositE+W

3E+WA payment of a holding deposit is a permitted payment.

Commencement Information

I3Sch. 1 para. 3 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

4E+WA holding deposit is an amount which—

(a)before the grant of a standard occupation contract, is paid to a landlord or a letting agent;

(b)is paid for the purpose of reserving a right of first refusal in relation to the granting of the contract, subject to suitability checks to be carried out as to the prospective contract-holder and agreement between the parties to enter into the contract;

(c)does not exceed an amount equivalent to one week's rent under the contract.

Commencement Information

I4Sch. 1 para. 4 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

5E+WWhere an amount required in purported compliance with this paragraph exceeds an amount equivalent to one week's rent under the contract, the amount of the excess is a prohibited payment, with the remainder falling to be treated under Schedule 2.

Commencement Information

I5Sch. 1 para. 5 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

Payment in the event of defaultE+W

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).E+W

(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.

Commencement Information

I6Sch. 1 para. 6 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

Payment in respect of council taxE+W

7(1)A payment that a contract-holder is required to make to a billing authority in respect of council tax is a permitted payment if the contract-holder is liable to make the payment by virtue of any of sections 6, 8 or 9 of the Local Government Finance Act 1992 (c. 14).E+W

(2)In this paragraph “billing authority” has the same meaning as in Part 1 of the Local Government Finance Act 1992 (see section 1(2) of that Act).

Commencement Information

I7Sch. 1 para. 7 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

Payment in respect of provision of utilitiesE+W

8(1)A payment for or in connection with the provision of a utility is a permitted payment if—E+W

(a)it is required under a standard occupation contract, and

(b)it is made in respect of the dwelling subject to the contract.

(2)A payment towards energy efficiency improvements under a green deal plan (within the meaning of section 1 of the Energy Act 2011 (c.16)) is a permitted payment if—

(a)it is required under a standard occupation contract, and

(b)it is made in respect of the dwelling subject to the contract.

(3)In this Act “utility” means any of the following—

(a)electricity, gas or other fuel;

(b)water or sewerage.

Commencement Information

I8Sch. 1 para. 8 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

Payment in respect of television licenceE+W

9(1)A payment that a contract-holder is required to make to the British Broadcasting Corporation in respect of a television licence is a permitted payment if the contract-holder is required by the contract to make the payment.E+W

(2)In this paragraph “television licence” means a licence for the purposes of section 363 of the Communications Act 2003 (c. 21).

Commencement Information

I9Sch. 1 para. 9 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

Payment in respect of communication serviceE+W

10(1)A payment for or in connection with a communication service is a permitted payment if⁠—E+W

(a)it is required under a standard occupation contract, and

(b)it is made in respect of the dwelling subject to the contract.

(2)In this paragraph, a “communication service” means a service enabling any of the following to be used—

(a)a telephone other than a mobile telephone;

(b)the internet;

(c)cable television;

(d)satellite television.

Commencement Information

I10Sch. 1 para. 10 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

[F1Service charges payable to community landlords etc.E+W

Textual Amendments

F1Sch. 1 para. 10A inserted (with effect in accordance with s.15(4) of the amending Act) by Renting Homes (Amendment) (Wales) Act 2021 (asc 3), ss. 15(1), 19(1) (with s. 15(5)-(7))

10A(1)A payment of a service charge is a permitted payment if—E+W

(a)it is required under a standard occupation contract, and

(b)the landlord is a community landlord.

(2)But sub-paragraph (1) does not apply in relation to—

(a)a standard occupation contract within paragraph 15 of Schedule 3 to the 2016 Act (accommodation which is not social accommodation), or

(b)a standard occupation contract mentioned in sub-paragraph (3).

(3)A payment of a service charge is a permitted payment if it is required under a standard occupation contract within section 143 of the 2016 Act (contracts relating to supported accommodation).

(4)For the purposes of this paragraph—

  • 2016 Act” (“Deddf 2016”) means the Renting Homes (Wales) Act 2016 (anaw 1);

  • community landlord” (“landlord cymunedol”) has the meaning given by section 9 of the 2016 Act;

  • service charge” (“tâl gwasanaeth”) does not include a charge for a service where the payment for the charge would be permitted by virtue of another paragraph of this Schedule, and in relation to sub-paragraph (3) only, includes charges for the provision of support services;

  • support services” (“gwasnaethau cymorth”) has the meaning given by section 143 of the 2016 Act (see, in particular, subsection (4) of that section).]

[F2Payment for further copy of written statementE+W

Textual Amendments

F2Sch. 1 para. 10B and cross-heading inserted (7.6.2021) by Renting Homes (Amendment) (Wales) Act 2021 (asc 3), ss. 16(2), 19(3)

10BE+WA payment of a reasonable fee for a further written statement of a standard occupation contract is a permitted payment.]

Changing the meaning of “permitted variation” in paragraph 1E+W

11E+WIf regulations made under section 7 amend this Schedule so as to change the meaning of “permitted variation” for the purposes of paragraph 1, they may also make consequential amendments to Chapter 3 of Part 6 and Chapter 3 of Part 7 of the Renting Homes (Wales) Act 2016 (anaw 1) (variation of standard occupation contracts).

Commencement Information

I11Sch. 1 para. 11 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

(as introduced by section 9)

SCHEDULE 2E+WTreatment of Holding Deposit

ApplicationE+W

1(1)This Schedule applies where a holding deposit is paid in respect of a standard occupation contract.E+W

(2)References in this Schedule to a contract-holder, in relation to a holding deposit, are to the person whose right of first refusal has been reserved by the holding deposit.

Commencement Information

I12Sch. 2 para. 1 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

Meaning of “deadline for agreement”E+W

2(1)In this Schedule, the “deadline for agreement” means the fifteenth day of the period beginning with the day on which the holding deposit is paid.E+W

(2)But the parties may agree in writing that a different day is to be the deadline for agreement.

(3)Regulations may amend sub-paragraph (1) to change the deadline for agreement.

Commencement Information

I13Sch. 2 para. 2 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

Requirement to repay holding depositE+W

3E+WSubject as follows, the person who received the holding deposit must repay it if—

(a)the parties enter into the contract before the deadline for agreement, or

(b)the parties fail to enter into the contract before the deadline for agreement.

Commencement Information

I14Sch. 2 para. 3 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

4E+WThe deposit must be repaid within the period of 7 days beginning with—

(a)where paragraph 3(a) applies, the day on which the contract is made, or

(b)where paragraph 3(b) applies, the deadline for agreement.

Commencement Information

I15Sch. 2 para. 4 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

ExceptionsE+W

5E+WParagraph 3(a) does not apply to the extent that the amount of the deposit is applied—

(a)towards the first payment of rent under the contract, or

(b)towards the payment of a security deposit under the contract.

Commencement Information

I16Sch. 2 para. 5 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

6E+WIf all or part of the holding deposit is applied in accordance with paragraph 5(b), the amount applied is treated for the purposes of section 45 of the Renting Homes (Wales) Act 2016 (anaw 1) (requirement to use deposit schemes) as having been paid on the date the contract is made.

Commencement Information

I17Sch. 2 para. 6 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

7E+WParagraph 3(b) does not apply if the contract-holder provides false or misleading information to the landlord or letting agent and—

(a)the landlord is reasonably entitled to take into account the difference between the information provided by the contract-holder and the correct information in deciding whether to grant a contract to the contract-holder, or

(b)the landlord is reasonably entitled to take the contract-holder's action in providing false or misleading information into account in deciding whether to grant such a contract.

Commencement Information

I18Sch. 2 para. 7 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

8E+WParagraph 3(b) does not apply if the contract-holder notifies the landlord or letting agent before the deadline for agreement that the contract-holder has decided not to enter into a contract.

Commencement Information

I19Sch. 2 para. 8 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

9E+WParagraph 3(b) does not apply in relation to a holding deposit paid to a landlord if—

(a)the landlord takes all reasonable steps to enter into a contract before the deadline for agreement, but

(b)the contract-holder fails to take all reasonable steps to enter into a contract before that date.

Commencement Information

I20Sch. 2 para. 9 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

10E+WParagraph 3(b) does not apply in relation to a holding deposit paid to a letting agent if—

(a)the agent takes all reasonable steps to assist the landlord to enter into a contract before the deadline for agreement, and

(b)the landlord takes all reasonable steps to enter into a contract before that date, but

(c)the contract-holder fails to take all reasonable steps to enter into a contract before that date.

Commencement Information

I21Sch. 2 para. 10 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

Supplemental provision about exceptions in paragraphs 8 to 10E+W

11(1)The exceptions specified in paragraphs 8, 9 and 10 may not be relied upon unless the condition in sub-paragraph (2) is met.E+W

(2)The condition is that, before payment of the holding deposit, information within sub-paragraph (3) has been provided to the contract-holder by either the landlord or (if one has been instructed by the landlord in relation to the contract) the letting agent.

(3)Information within this sub-paragraph is information specified in, or of a description specified in, regulations.

(4)Information is not to be treated as having been provided to the contract-holder, for the purposes of sub-paragraph (1), unless it has been provided in whatever way (if any) is specified in the regulations.

(5)In a case where a landlord has instructed a letting agent in relation to a contract, the exception in paragraph 9 may, in addition, not be relied upon unless the agent takes all reasonable steps to assist the landlord to enter into a contract before the deadline for agreement.

Commencement Information

I22Sch. 2 para. 11 in force at 1.9.2019 by S.I. 2019/1150, art. 2(d)

Prospective

(as introduced by section 20)

F3SCHEDULE 3E+WAMENDMENTS TO THE RENTING HOMES (WALES) ACT 2016

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

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