The private rented sector throughout Wales is on the brink of huge changes after the Housing Wales (Bill) was approved this week.

In what could be a blueprint for England if Labour gets in, it means that all agents and all landlords will be regulated in a two-stage process.

Landlords and letting agents will not only have to be registered but, if they want to manage properties, have to be licensed as well.

Those landlords who are registered but not licensed will have to use a licensed agent.

Unlicensed landlords will not be allowed to draw up a tenancy, inventory or even show tenants around their own property.

Licences will cost £50 plus £10 per property every five years. A further requirement for letting agents is that they will have to belong to a recognised body.

The scheme will be administered by Cardiff City Council on behalf of the 22 Welsh local authorities, which will have enforcement powers.

Both landlords and agents will have to undergo training and pass ‘fit and proper person’ tests. The training can be taken through the licensing authority in Wales or through a course offered by an approved body.

Licences can be revoked and it would not be possible to serve Section 21 notices if a landlord or agent has failed to register. The Bill also has Rent Stopping Orders, giving tenants the right to withhold rents if licences are revoked.

There are an estimated 50,000 private landlords in Wales, owning some 182,000 properties (2012 figure) – equating to some 14.2% of housing stock.

The licensing arrangements have been vigorously supported by Shelter – and just as vehemently opposed by the Residential Landlords Association, which has a strong presence in Wales.

The timing of implementation of the Bill has not yet been announced, but it is likely to be phased in – possibly with agents first.

Nor is it the end of the lettings revolution in Wales. Another piece of legislation, the Renting Homes (Wales) Bill, is expected to be on the legislative agenda next year. It will abolish Assured Shorthold Tenancies, together with other existing forms of tenancy, and replace them with standardised “secure” tenancies.

Clive Spence, of the Home Rental Company in Carmarthen, said: “I think there will be a lot of upset landlords, a lot of hard work for letting agents, and more landlords having their properties managed.

“The Welsh Government have said they believe 30,000 landlords who are self-managing will use a licensed letting and property management company in the future. I also feel landlords will sell up and move out of the private rented sector altogether.”