A change to the date when rules governing holding deposits were due to be implemented in Wales has been effected after representations from Propertymark ARLA.
The changes were to have come into force on December 13, but will now be implemented on February 28.
ARLA board member for Wales Angela Davey and ARLA CEO David Cox met the Welsh housing minister Julia James.
They explained that insufficient notice – just 19 days – had been given of the changes to the laws around taking holding deposits.
Davey and Cox said that agents needed time to change IT systems, create new procedures and train colleagues.
The points were accepted by the minister, who said she had no intention of putting agents in the difficult position of not having enough time to prepare for new laws before they are implemented.
The changes are to do with the provision of addresses to prospective tenants before a holding deposit is taken.
Where the property is managed by agent, only the agent’s contact details will be required.
I hope Welsh Agents take note because the requirements are now more stringent to the notification sent out in the Spring that came into force in the 1st September. These are new rules which have not been circulated to many agents and licensed landlords!!!!!!!!!!!!!!!
It is about ‘Holding Deposits’, don’t get confused with Tenant Fees ban.
The Renting Homes (Fees etc.) (Specified Information) (Wales) Regulations 2019 have been laid in the National Assembly for Wales, and unless annulled, will be effective from 13th December 2019.
The intention of the regulations is to ensure that a prospective tenant does not provide a holding deposit unless specified information has been provided to them. Also to provide that a landlord or agent is not able to require a holding deposit unless the relevant information has been provided to the tenant.
This allows prospective tenants to make an informed choice about whether a tenancy is suitable before making a financial commitment. In particular, it is considered that information relating to the costs associated with the tenancy and the need for a guarantor should be made clear prior to a holding deposit being taken as these have a significant bearing on a tenant’s ability to take up the tenancy.
The regulations now make it a requirement for the following information to be provided in writing to a prospective contract-holder:
amount of holding deposit
identify the dwelling in respect of which the deposit is paid
name, address, telephone number and any email address of the landlord (and if instructed, the letting agent)
nature and duration of the contract
proposed occupation date
amount of rent or other consideration
rental period
any proposed additional contract terms or proposed modifications or exclusions to fundamental or supplementary terms
amount of any security deposit
whether a guarantor is required and, if so, any relevant conditions
reference checks the landlord (or letting agent) will undertake
information the landlord or letting agent requires from the prospective contract-holder.
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This new requirements were made up and made known 19th November. While a standard ‘brochure’ may cover most tenancies, be aware you don’t get caught out by property/landlord sepcific requirements being incorrect or failed to disclose.
“any proposed additional contract terms or proposed modifications or exclusions to fundamental or supplementary terms”
You may need 4 x A4 pages!
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