Reform history

- (3) But subsection (2) does not apply if the contract for services concerned is a contract between a landlord and a letting agent only, in respect of lettings work or property management work to be carried out by the agent on the landlord’s behalf.

- “*lettings work*” (“**gwaith gosod**”) and “*property management work*” (“**gwaith rheoli eiddo**”) have the same meaning as in Part 1 of the [Housing (Wales) Act 2014 (anaw 7)](https://www.legislation.gov.uk/anaw/2014/7) (see sections 10 and 12 of that Part).

- (1) An authorised officer of an enforcement authority may exercise the powers conferred by subsections (2) and (3) in relation to documents or information reasonably required by the authority for the purpose of investigating whether any offence under this Act has been committed in respect of a dwelling located in the enforcement authority’s area.

- (b) are in the person’s custody or under the person’s control.

- (8) In this section,“*document*” includes information recorded otherwise than in legible form, and in relation to information so recorded, any reference to the production of a document is a reference to the production of a copy of the information in legible form.

- (1) Where an authorised officer of an enforcement authority has reason to believe that a person has committed an offence under section 2 or 3 in the authority’s area, the officer may give that person a fixed penalty notice in respect of the offence.

- (4) A fixed penalty notice given under this section is to be treated as if it were given under section 29 of the [Housing (Wales) Act 2014 (anaw 7)](https://www.legislation.gov.uk/anaw/2014/7) for the purposes of subsections (2), (3) and (6) to (8) of that section (provision about how fixed penalty notices are given), and for this purpose the reference in subsection (8)(a) of that section to “the licensing authority” is to be treated as being a reference to the enforcement authority in question.

- (5) Fixed penalty receipts received by an enforcement authority by virtue of this section may not be used otherwise than for the purpose of the authority’s functions relating to the enforcement of the provisions of this Act.

- (2) The authority must give notification of the conviction to the licensing authority designated under section 3 of Part 1 of the [Housing (Wales) Act 2014 (anaw 7)](https://www.legislation.gov.uk/anaw/2014/7), or, if there is more than one licensing authority so designated, to each of those authorities.

- (4) For the purposes of this section, “*licensing authority*” means a person designated as a licensing authority under section 3 of Part 1 of the [Housing (Wales) Act 2014 (anaw 7)](https://www.legislation.gov.uk/anaw/2014/7).

- (3) An enforcement authority may use information within subsection (5)(a), (b) or (c) for any purpose connected to the exercise of the authority’s functions under this Part.

- (4) An enforcement authority may, in addition, use information within subsection (5)(a) or (b) for any purpose connected to the exercise of any of its functions under Part 1 of the [Housing (Wales) Act 2014 (anaw 7)](https://www.legislation.gov.uk/anaw/2014/7) (“*the 2014 Act*”).

Schedule 3 amends the [Renting Homes (Wales) Act 2016 (anaw 1)](https://www.legislation.gov.uk/anaw/2016/1) to make provision in connection with prohibited payments and retained holding deposits, and makes further associated amendments.

In section 41 of the [Housing (Wales) Act 2014 (anaw 7)](https://www.legislation.gov.uk/anaw/2014/7) (guidance under Part 1 of Act), after subsection (2) insert—

> (2A) Guidance given to a licensing authority may (among other things) include provision about matters to be taken into account by a licensing authority in deciding whether a failure to repay the amount of any prohibited payment or holding deposit (within the meaning of the Renting Homes (Fees etc.) (Wales) Act 2019) affects a person’s fitness to be licensed under this Part.

## PART 6 — Publicising Letting agents’ Fees

- (1) Regulations may amend Chapter 3 of Part 3 of the [Consumer Rights Act 2015 (c.15)](https://www.legislation.gov.uk/ukpga/2015/15) (duty to publicise fees etc.)—

- (a) to require a letting agent to ensure that any online advertiser publicises the agent’s relevant fees, so far as those fees relate to dwelling-houses in Wales;

- (2) For the purposes of subsection (1), “*assured tenancy*” has the same meaning as in the [Housing Act 1988 (c. 50)](https://www.legislation.gov.uk/ukpga/1988/50) (and includes an assured shorthold tenancy).

- “*contract-holder*” (“**deiliad contract**”) has the same meaning as in the [Renting Homes (Wales) Act 2016 (anaw 1)](https://www.legislation.gov.uk/anaw/2016/1) (referred to in this section as “*the 2016 Act*”);

- *Step 5* Calculate the difference between the amount of rent calculated under Step 4, and the amount of rent actually payable in respect of the period in which the higher ADR is payable. The resulting amount is a prohibited payment by virtue of sub-paragraph (2).

- (c) does not exceed an amount equivalent to one week’s rent under the contract.

Where an amount required in purported compliance with this paragraph exceeds an amount equivalent to one week’s rent under the contract, the amount of the excess is a prohibited payment, with the remainder falling to be treated under Schedule 2.

- (1) A payment that a contract-holder is required to make to a billing authority in respect of council tax is a permitted payment if the contract-holder is liable to make the payment by virtue of any of sections 6, 8 or 9 of the [Local Government Finance Act 1992 (c. 14)](https://www.legislation.gov.uk/ukpga/1992/14).

- (2) A payment towards energy efficiency improvements under a green deal plan (within the meaning of section 1 of the [Energy Act 2011 (c.16)](https://www.legislation.gov.uk/ukpga/2011/16)) is a permitted payment if—

- (2) In this paragraph “*television licence*” means a licence for the purposes of section 363 of the [Communications Act 2003 (c. 21)](https://www.legislation.gov.uk/ukpga/2003/21).

If regulations made under section 7 amend this Schedule so as to change the meaning of “*permitted variation*” for the purposes of paragraph 1, they may also make consequential amendments to Chapter 3 of Part 6 and Chapter 3 of Part 7 of the [Renting Homes (Wales) Act 2016 (anaw 1)](https://www.legislation.gov.uk/anaw/2016/1) (variation of standard occupation contracts).

If all or part of the holding deposit is applied in accordance with paragraph 5(b), the amount applied is treated for the purposes of section 45 of the [Renting Homes (Wales) Act 2016 (anaw 1)](https://www.legislation.gov.uk/anaw/2016/1) (requirement to use deposit schemes) as having been paid on the date the contract is made.

- (b) the landlord is reasonably entitled to take the contract-holder’s action in providing false or misleading information into account in deciding whether to grant such a contract.

The [Renting Homes (Wales) Act 2016 (anaw 1)](https://www.legislation.gov.uk/anaw/2016/1) is amended as follows.

After section 177 (restriction on landlord under a periodic contract giving notice for possession: breach of security and deposit requirements), insert—

> (177A)

> (1) The landlord may not give a notice under section 173 at a time when⁠—

> (a) the landlord has required a prohibited payment (within the meaning given by the Renting Homes (Fees etc.) (Wales) Act 2019) to be made as described in section 2 or 3 of that Act,

> (b) as a result of the requirement, a prohibited payment has been made to the landlord or to any other person, and

> (c) the prohibited payment has not been repaid.

> (2) The landlord may not give a notice under section 173 at a time when⁠—

> (a) a holding deposit (within the meaning given by the Renting Homes (Fees etc.) (Wales) Act 2019) paid in relation to the contract has not been repaid, and

> (b) the circumstances are such that the failure to repay the deposit amounts to a breach of the requirements of Schedule 2 to that Act.

> (3) In determining for the purposes of this section whether a prohibited payment or a holding deposit has been repaid, the payment or deposit is to be treated as having been repaid to the extent (if any) that it has been applied towards either or both of the following—

> (a) a payment of rent under the contract;

> (b) a payment required as security in respect of the contract.

> (4) This section is a fundamental provision which is incorporated as a term of all periodic standard contracts which incorporate section 173 as a term of the contract.

In section 126 (notice procedure for variation, under section 125, of occupation contract by landlord), in subsection (2), for “or section 177 (breach of security and deposit requirements)” substitute “, section 177 (breach of security and deposit requirements) or section 177A (prohibited payments and holding deposits)”.

- (1) After section 186 (landlord’s notice in connection with end of term), insert—

> (186A)

> (1) If the landlord does not comply with section 31(1) or (2) (duty to provide written statement of contract), the landlord may not give notice under section 186 before the end of the restricted period.

> (2) The restricted period is six months starting with the day on which the landlord gives a written statement of the contract to the contractholder.

> (3) The landlord may not give the contract-holder notice under section 186 at any time when the landlord has not provided a notice required under section 39 (duty to provide information).

> (4) This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts which incorporate section 186(1) as a term of the contract.

> (186B)

> (1) The landlord may not give notice under section 186 at a time when security required by the landlord in a form not permitted by section 43 has not been returned to the person by whom it was given.

> (2) The landlord may not give notice under section 186 at a time when any of subsections (3) to (5) apply unless—

> (a) a deposit paid in connection with the contract has been returned to the contract-holder (or any person who paid the deposit on his or her behalf) either in full or with such deductions as may have been agreed, or

> (b) an application to the county court has been made under paragraph 2 of Schedule 5 and has been determined by the county court, withdrawn, or settled by agreement between the parties.

> (3) A deposit has been paid in connection with the contract but the initial requirements of an authorised deposit scheme have not been complied with.

> (4) A deposit has been paid in connection with the contract but the landlord has not provided the information required by section 45(2)(b).

> (5) A deposit paid in connection with the contract is not being held in accordance with an authorised deposit scheme.

> (6) This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts which incorporate section 186(1) as a term of the contract; and section 20 provides that this section—

> (a) must be incorporated, and

> (b) must not be incorporated with modifications.

> (186C)

> (1) The landlord may not give a notice under section 186 at a time when—

> (a) the landlord has required a prohibited payment (within the meaning given by the Renting Homes (Fees etc.) (Wales) Act 2019) to be made as described in section 2 or 3 of that Act,

> (b) as a result of the requirement, a prohibited payment has been made to the landlord or to any other person, and

> (c) the prohibited payment has not been repaid.

> (2) The landlord may not give a notice under section 186 at a time when—

> (a) a holding deposit (within the meaning given by the Renting Homes (Fees etc.) (Wales) Act 2019) paid in relation to the contract has not been repaid, and

> (b) the circumstances are such that the failure to repay the deposit amounts to a breach of the requirements of Schedule 2 to that Act.

> (3) In determining for the purposes of this section whether a prohibited payment or a holding deposit has been repaid, the payment or deposit is to be treated as having been repaid to the extent (if any) that it has been applied towards either or both of the following—

> (a) a payment of rent under the contract;

> (b) a payment required as security in respect of the contract.

> (4) This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts which incorporate section 186(1) as a term of the contract.

- (2) In section 20 (incorporation and modification of fundamental provisions), in subsection (3), after paragraph (m), insert—

> (ma) section 186B (breach of deposit requirements: restriction on giving notice in connection with end of fixed term standard contracts),

.

- (3) In section 135 (limitation on variation), in subsection (2), after paragraph (i), insert—

> (ia) section 186B (breach of deposit requirements: restriction on giving notice in connection with end of fixed term standard contracts),

.

- (4) For section 183(2) (relevance of events under fixed term standard contract), substitute—

> (2) Sections 179 and 180 apply to a notice under section 186(1), and to a possession claim made on the ground in section 186(5) in reliance on such a notice, as they apply to a notice under section 173, and to a possession claim made on the ground in section 178 in reliance on a notice under section 173.

After section 198 (restrictions on use of landlord’s break clause: security and deposit requirements), insert—

> (198A)

> (1) The landlord may not give notice under a landlord’s break clause at a time when—

> (a) the landlord has required a prohibited payment (within the meaning given by the Renting Homes (Fees etc.) (Wales) Act 2019) to be made as described in section 2 or 3 of that Act,

> (b) as a result of the requirement, a prohibited payment has been made to the landlord or to any other person, and

> (c) the prohibited payment has not been repaid.

> (2) The landlord may not give notice under a landlord’s break clause at a time when—

> (a) a holding deposit (within the meaning given by the Renting Homes (Fees etc.) (Wales) Act 2019) paid in relation to the contract has not been repaid, and

> (b) the circumstances are such that the failure to repay the deposit amounts to a breach of the requirements of Schedule 2 to that Act.

> (3) In determining for the purposes of this section whether a prohibited payment or a holding deposit has been repaid, the payment or deposit is to be treated as having been repaid to the extent (if any) that it has been applied towards either or both of the following—

> (a) a payment of rent under the contract;

> (b) a payment required as security in respect of the contract.

> (4) This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts with a landlord’s break clause.

In section 204 (restrictions on court hearing a landlord’s claims for possession)—

- (a) in subsection (1)(a)(vii), after “177” insert “, 177A”;

- (b) in subsection (1)(a)(ix), for “section 186”, substitute “sections 186, 186A, 186B and 186C;

- (c) in subsection (1)(a)(xiii), after “198” insert “, 198A”.

In Schedule 1 (overview of fundamental provisions incorporated as terms of occupation contracts)—

- (a) in Part 2 (periodic standard contracts), in table 4, in the notes for the entry for sections 173 to 180 (termination by notice given by landlord)—

- (i) for “and 176” substitute “, 176, 177 and 177A”;

- (ii) for “section 176” substitute “section 177”;

- (b) in Part 3 (fixed term standard contracts), in table 5—

- (i) in the first column of the entry for section 186, for “Section 186”, insert “Sections 186, 186A, 186B and 186C”;

- (ii) in the notes for the entry for section 186, at the end, insert “If section 186(1) is not incorporated, sections 186A, 186B and 186C do not apply. If a contract incorporates section 186(1), sections 186A, 186B and 186C must be incorporated, and section 186B must be incorporated without modification.”;

- (iii) in the notes for the entry for sections 195 to 201 (termination by notice given by landlord under landlord’s break clause), for “section 196 (breach of deposit rules)” substitute “section 198 (breach of security and deposit requirements)”.

### Service charges payable to community landlords etc.

##### 10A

- (1) A payment of a service charge is a permitted payment if—

- (a) it is required under a standard occupation contract, and

- (b) the landlord is a community landlord.

- (2) But sub-paragraph (1) does not apply in relation to—

- (a) a standard occupation contract within paragraph 15 of Schedule 3 to the 2016 Act (accommodation which is not social accommodation), or

- (b) a standard occupation contract mentioned in sub-paragraph (3).

- (3) A payment of a service charge is a permitted payment if it is required under a standard occupation contract within section 143 of the 2016 Act (contracts relating to supported accommodation).

- (4) For the purposes of this paragraph—

- “*2016 Act*” (“**Deddf 2016**”) means the Renting Homes (Wales) Act 2016 (anaw 1);

- “*community landlord*” (“**landlord cymunedol**”) has the meaning given by section 9 of the 2016 Act;

- “*service charge*” (“**tâl gwasanaeth**”) does not include a charge for a service where the payment for the charge would be permitted by virtue of another paragraph of this Schedule, and in relation to sub-paragraph (3) only, includes charges for the provision of support services;

- “*support services*” (“**gwasnaethau cymorth**”) has the meaning given by section 143 of the 2016 Act (see, in particular, subsection (4) of that section).

### Payment for further copy of written statement

##### 10B

A payment of a reasonable fee for a further written statement of a standard occupation contract is a permitted payment.