Part 1 Housing (Wales) Act 2014 and Rent Smart Wales Anne Rowland Group Leader Rent Smart Wales Title Name/Date
• From 2011 Census approx. 14% (185,000) properties in PRS in Wales (8,572 in Newport) • No one knows true number of landlords; believe majority one property • Important Housing Option but traditionally poorest standards of management and conditions; often due to lack of understanding • National Accreditation Scheme, run from Cardiff Council since 2008; trained around 5,000 landlords and a number of agency staff. Model proved to be working well. • In 2011 National Assembly for Wales granted ability to make new primary Housing legislation • Housing White Paper for Better Lives and Communities, May 2012
– Given Royal Assent in September 2014 – Majority of Part 1 came into force 23 rd Nov 2015 – Enforcement to commence from 23 rd Nov 2016
• Act introduced a legal requirement for all landlords to register themselves and their rental addresses • Landlords and agents who act on their behalf who let and/or manage rental properties must become licensed • Licensing based on training (no property inspection) • Applicable to Assured, Assured Shorthold and Regulated tenancies within Wales • Exempts Residential Social Landlords from registration; however if RSL does letting and management work on behalf of a PRS landlord they must be licensed • Most other exemptions come about from the fact that certain people cannot grant ASTs (e.g. university owned accommodation, owner occupiers with lodgers, etc.)
• The Welsh Ministers have designated a Licensing Authority to administer the system • Cardiff Council have the designation • Cardiff will maintain the register and administer and grant registrations and licences • Landlords and agents have one application to cover them for whole country. • New service created within Cardiff Council; run under the brand name Rent Smart Wales
• From launch until 22 March 2016: – Users Accounts: 11,086 – Landlords registered: 7,216 – Paid course bookings: 2,049
Other Key Statistics Cases dealt with by the service from 23rd November 2015 to 29 th February 2016. Total number of enquires: 4531
On-line process (including fee payment) Landlord Must: Provide correspondence info • Give address of all rental Simple, quick and automated • property Pay a fee • Identify who does letting and • Register is not public; but management at each property tenants can verify landlords Part of registration, the landlord names the agent. During the online process landlords can either find ‘applied’ agents to name on their registration or add in details of their agent. In either case an e-mail is sent to the agent to confirm they do the letting or management work on behalf of the landlord.
The following type of landlord must register separately and include the address(es) of the rental property they are the landlord for in Wales: • individual landlord; • joint landlord (lead landlord registers), • company landlord • charity • trust
• Sent registration document (via post or e-mail). • Always retrievable from on-line account • Shows landlord(s) & rental addresses registered • Assigns unique registration number #RN • Start & Expiry Date • Obligation to keep information up to date
‘Letting’ and ‘managing’ defined in the Act Persons who ‘let’ or ‘manage’ rental property must apply for a Applicant could be landlord, licence. commercial letting & management agent, family Applicant must : member Be fit and proper • Undertake approved training • Pay a fee • Either applicant or all staff of applicant doing letting and management work to be trained Once licensed: • Lasts 5 years; but has conditions attached. Licensee must comply with the conditions and continue to be fit & proper; otherwise licence can be revoked. • Renewal process, including additional fee
• Sent licence document (via post or e-mail) & licence card. • Always retrievable from on-line account • Assigns unique licence number #LR & Start & Expiry Date • Obligation to keep information up to date and comply with conditions
• Most are standard; some could be time limited • Always condition to adhere to the Code of Practice. • States licensee is able to use brand (in line with guidelines) and agents get a window sticker
Made on 3 rd November. Written by Welsh Government with input from tenant, landlord and agent groups and consulted on • Residential Landlord Association (RLA) • National Landlord Association (NLA) • Association of Residential Lettings Agents (ARLA) • Shelter Cymru • Citizens Advice Contains legal requirements (must comply with) and best practice (should comply with).
• Client money protection; professional indemnity insurance, membership of redress scheme (timed condition of licence) • Train staff (newly employed), within 3 months of starting • Also general conditions re: notifying client landlords about registration; providing info on client landlords to RSW, etc
People who need to be trained on behalf of an applicant are termed in the law ‘connected persons’ Section 2 of the Regulation of Private Rented Housing (Training Requirements)(Wales) Regulations 2015 define ‘connected persons’. ‘doing things under a contract of service or apprenticeship with an applicant for a licence [if they do any letting or management work/activities*]’ This means all staff who meet the criteria need to be trained *letting or management work/activities is defined in the Regs/Act. This is simply an abbreviation of the law and is not the correct legal definition
Landlord and Agent training offered by Rent Smart • Wales – advertised on our website; new dates all the time/or once interest shown in an area. Or approved training can be undertaken from • authorised provider. Currently in the process of approving external courses. 10 courses – 8 providers approved - and a couple of pending https://www.rentsmart.gov.wales/en/training/approved- external-providers/ RSW will be offering on-line training - currently being • developed will be available in coming months. Note: other approved providers offer online training currently.
Up to 29 th February 2016
• Fees set by Cardiff Council – robust financial modelling completed prior to setting fees • Fees setting just as for HMO licence e.g. can cover administration, on-going compliance and enforcement work. But not for profit. • Fee review for agents just taken place; consulted with professional bodies – some responses back. • New fees for agent licences released yesterday (22/3) and come into force 25 April 2016.
Application Type New application Renewal Period £33.50 5 years Landlord Registration - On Line £80.50 5 years Landlord Registration - Paper £144.00 5 years Landlord Licensing- On Line * £186.00 5 years Landlord Licensing- Paper * £3,728.00 5 years Agent licensing- On Line £4,368.00 5 years Agent licensing- Paper
All landlord fees will be the same. Only changes for agents. Full policy on Useful Downloads page of our website Price is higher for a paper application.
Landlord Licensing Fee (£144 online) applies to: – Agents managing less than 20 properties and who do not undertake “let only” activities, or – Agents who manage only their own and / or properties owned by a relative* and do not employ staff for letting and management purposes, – unless otherwise determined by the Licensing Authority.
Relevant professional body membership will include: • Association of Residential Letting Agents (ARLA) • Royal Institute of Chartered Surveyors (RICS) • National Approved Letting Scheme (NALS) • The UK Association of Letting Agents UKALA • Other as determined by Licensing Authority
• People who had trained under LAW, but not signed up to RSW are having their training records transferred over and will receive an email next week. • If you already have a RSW account – your training record from LAW will be uploaded after Easter. Once notified you can do course top up (if needed). • If by end of next week you are unsure of your account status, contact RSW
Rent Smart Wales Launched by the Minister, Lesley Griffiths AM on the 23 rd November 2015 (day legislation went live). Some national marketing at that point – much more being done now December and Christmas have passed Communications strategy includes paid for avenues in order to reach a wide audience e.g. on-line advertising, Wales on- line, local newspapers, Council buildings, etc We need to rely on ‘earned and owned’ so including landlords, agents, membership bodies, etc. disseminating information More and more will be done, with the messaging differing as we get nearer enforcement powers coming in
• Marketing of requirements should encourage most people to comply without intervention (whole sector buy-in) • Lead in time before enforcement can occur; powers will be enacted 23 rd Nov 2016 • Enforcement by local authority (or licensing authority) • Suite of enforcement tools for ‘rogues’: – Prosecutions – Fixed Penalty Notices – Rent Stopping Orders – Rent Repayment Orders – Restriction on terminating tenancies (no s.21)
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