Rent Smart Wales

Mon 8 February 2016

2016 is going to be an eventful year for the residential letting market in Wales. We will see the tax and stamp duty changes that were announced in the budget and autumn statement take effect, along with the Renting Homes Bill potentially becoming law which could see significant changes to the way in which residential tenancies are written in Wales.

Furthermore, one of the biggest changes to the letting market in Wales is going to be the compulsory registration of landlords and agents in the form of the Rent Smart Wales Scheme under the Housing (Wales) Act 2014.

Under the Rent Smart Wales Scheme, any landlord who has a rental property in Wales which is rented on an assured, assured shorthold or regulated tenancy is required to register by November 2016. Now is the time for landlords to consider how they are going to comply with these new requirements.

Registration needs to be undertaken through Rent Smart Wales and there is a fee for doing this. The fee is presently £33.50 if completed on-line or £80.50 if completed in a paper format. The cost for registration does not increase if more than one rental property is part of the registration. A landlord’s registration lasts 5 years after which time a landlord must re-register.

Landlords who are involved in setting up tenancies and managing their own rental properties will also need a licence. This licence needs to be obtained in addition to the landlord registration. For those landlords who are not involved in setting up tenancies and managing their rental properties they will need to use a ‘licensed agent’. A licensed agent is one that will also be registered with Rent Smart Wales such as McCartneys LLP.

However, for those landlords who wish to undertake ‘licensed activities’ they will need to apply for a licence through Rent Smart Wales, undertake a very short training course as specified by Rent Smart Wales and also be deemed ‘fit and proper’ (by ensuring they have no relevant convictions against them). Once Rent Smart Wales has assessed the application they will award a licence. It is understood that only in exceptional circumstances would a licence be refused.

The residential letting market is undergoing some significant changes and the importance of staying up-to-date with these changes is more important than ever. McCartneys has experienced, qualified and professional letting experts across the region to assist you with these changes. We also offer a fully managed rental service to assist in landlords meeting their new obligations. If we can be of assistance to you please contact your local office or myself.

Simon Edwards MRICS IRRV MARLA

Email: simon.edwards@mccartneys.co.uk

Telephone: 01874 610990