Part 1 Housing (Wales) Act 2014 and Rent Smart Wales Bethan Jones Operational Manager Rent Smart Wales Title Name/Date
From 2011 Census approx. 14% (185,000) properties in PRS in Wales 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 1 st July 2016: Users Accounts: 24,119 Landlords registered: 13,797 Paid course bookings: circa2500 Licence applications received / week: 100. Issued over 700
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. On-line process (including fee payment) Landlord Must: Provide correspondence info Give address of all rental property Pay a fee Identify who does letting and management at each property Simple, quick and automated Register is not public; but tenants can verify landlords
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
Persons who let or manage rental property must apply for a licence. Applicant must : Be fit and proper Undertake approved training Pay a fee Letting and managing defined in the Act Applicant could be landlord, commercial letting & management agent, family member 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 a condition to adhere to the Code of Practice. NB. The licensee may appoint an unlicensed person to be the main point of contact and make any decisions relating to their rented properties in an emergency only/ following circumstances only: a. for a short period of time such as a holiday, or hospital stay b. for less than 4 weeks over a 12 month period. If the licensee is away/unable to manage their property(s) for more than 4 weeks it must appoint a licensed agent to let or manage their properties
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 All licensees can use brand (in line with guidelines) and agents get a window sticker
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. 26 courses 15 providers approved - and a couple of pending https://www.rentsmart.gov.wales/en/training/approvedexternal-providers/ RSW offers online training for landlords and agents. Note: other approved providers offer online training also.
RSW Classroom training up to 31 th May 2016
Fees set by Cardiff Council robust financial modelling completed prior to setting fees. Every aspect of the activity costed 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 took place beginning of year; consulted with professional bodies and individuals. In place from 25 April 2016.
Application Type New application Renewal Period Landlord Registration - On Line 33.50 5 years Landlord Registration - Paper 80.50 5 years Landlord Licensing- On Line * 144.00 5 years Landlord Licensing- Paper * 186.00 5 years
Full fee policy on Useful Downloads page of RSW website Price is higher for a paper application.
Smaller Licensing Fee ( 144 online/ 186 paper form) 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.
Ø 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 a lot more now being done, with the messaging becoming stronger as we get nearer enforcement powers coming in Ø Communications strategy includes paid for avenues in order to reach a wide audience e.g. on-line advertising, Wales online, local newspapers, Council buildings, etc Ø We need to rely on earned and owned so including landlords, agents, membership bodies, etc. disseminating information
Marketing of requirements should encourage most people to comply without intervention (whole sector buy-in) but enforcement will be used on those who intentionally do not comply. High risk areas will be targeted first. Powers will be enacted 23 rd November 2016 Enforcement by local authority (or licensing authority); working in partnership Suite of enforcement tools for rogues : Prosecutions Fixed Penalty Notices Rent Stopping Orders Rent Repayment Orders Restriction on terminating tenancies (no s.21)
ü Not all landlords must have a licence; if agent does all letting and property management work then only agent needs to be licensed. ü BUT some properties will have a licensed landlord and agent (split of roles, e.g. let only agent then landlord does management) ü AND all landlords will still have to register (can be lead landlord) ü One licence covers the agent/landlord for any property in Wales; it is the landlord that registers each individual address and states the licensee(s). If a person is both a landlord and agent, they can just get an agent licence. ü No Scots Disclosure/DBS check requirement with licence application ü If property has an HMO licence, landlord still needs to register and have a licensed person in place to let and manage it under new Act
Housing (Wales) Act 2014 Part 1 provisions now mostly in place. All landlords have to register All letting and managing landlords and agents have to licence Licensing based on suitability and training The legislation should result in: Improved management standards in the private rented sector More useful strategic information for LAs on landlords and agents and the location of private rentals; and easier means to connect with sector Raised awareness by landlords, agents and tenants of their respective rights and responsibilities. There is a Welsh Government produced Tenant Guide on the Useful Downloads Page and also a checklist coming soon too.
Visit www.rentsmart.gov.wales Comprehensive FAQ section and interactive questionnaire. Follow twitter: @rentsmartwales Contact us through our on-line form or Phone 03000 133344 or Email rentsmartwales@cardiff. gov.uk
Any questions?