Landlord Legislation in Wales: What You Need to Know
Becoming a landlord comes with a lot of responsibility. In Wales, it also means staying up to date with changing legislation and being properly registered or licensed under Rent Smart Wales. It can feel like a lot to manage, but we're here to help simplify things.
Here are a few key areas landlords in Wales need to stay on top of:
Rent Smart Wales Requirements
All landlords in Wales must register with Rent Smart Wales, and if you're managing your own property, you also need a licence. This helps ensure a consistent standard of knowledge and professionalism across the sector. Failing to register or get licensed can lead to enforcement action.
Permitted Payments and Fees
Under Welsh law, tenants cannot be charged unfair fees. Only certain charges (for example: late rent payments, lost keys) are permitted and must be clearly outlined in the tenancy agreement. A holding deposit (typically equivalent to one week’s rent) can be requested to reserve a property, but conditions apply. For example, the deposit may be withheld if a tenant withdraws from the process, provides misleading information, or fails to sign the contract within the agreed timeframe.
Client Money Protection (CMP)
If you're working with a letting agent, they must be part of a Client Money Protection scheme. This protects your rent and deposits if the agent mishandles client funds.
Energy Efficiency
All rental properties must have an EPC rating of E or above. Properties rated F or G cannot legally be let unless exempt. This applies to new and existing tenancies. Landlords could face fines for non-compliance.
Tax Changes
While the full UK mortgage interest relief changes apply, Welsh landlords should speak with a tax advisor to understand how this impacts their income and planning.
Property Standards
Landlords in Wales must also comply with the Housing (Wales) Act 2014 and Homes (Fitness for Human Habitation) (Wales) Act 2022, which include rules on electrical safety, fire safety, and more.