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The Welsh Government has introduced a bill proposing a ban on tenant fees in the private rented sector.
The Renting Homes (Fees etc) (Wales) Bill will prohibit landlords and letting agents from charging for signing contracts, renewing tenancies and receiving an inventory, among other things.
Under the proposed new law, tenants who comply with their tenancy agreement will only be required to pay rent plus security and holding deposits.
Holding deposits paid to reserve properties would be capped at one week’s rent.
Councils would be allowed to hit landlords and agents attempting to charge tenants fees banned under the legislation with a £500 fixed penalty, or take them to the magistrates’ court with the potential for an unlimited fine if they fail to pay.
Offenders could also face losing their landlord licence through the Rent Smart Wales scheme.
Rebecca Evans, housing and regeneration minister for the Welsh Government, said: “Fees charged by letting agents often present a significant barrier to many tenants, especially those on lower incomes.
“The bill will mean that tenants no longer face significant upfront fees when they start renting. In most instances they will only need to pay their monthly rent and a security deposit.
“No longer will tenants be charged for an accompanied viewing, receiving an inventory or signing a contract. No longer will they be charged for renewing a tenancy. And no longer will they have to pay check-out fees when they move out.
“I want renting to be a positive and widely accessible choice for people, and this bill will ensure that rental costs become more reasonable, affordable and transparent.”
The UK government introduced its own bill to ban letting fees to parliament last month, while the charges were banned in Scotland in 2012.