The Welsh Government has laid regulations on the default payments which can
be charged to tenants occupying premises under an assured shorthold tenancy
in the private rented sector in Wales.
The Renting Homes (Fees etc.) (Prescribed Limits of Default Payments)
(Wales) Regulations 2020 (‘the Act’) come into force on 28 April 2020.
Within the Renting Homes (Fees etc.) (Wales) Act 2019, Welsh Ministers had
the power to make regulations specifying the limits for certain types of
payment that can be charged in the event of a default by the tenant.
Under the Act, landlords or letting agents in Wales can charge tenants:
1. Interest at a rate of 3% above the Bank of England base rate for the
late payment of rent which is more than 7 days overdue; and
2. The actual cost of replacing a lost key and/or changing, adding or
removing a lock to gain access to the property, as evidenced by an invoice
These default fees are similar to those default fees permitted under the
Tenant Fees Act 2019 which affect England only, however, in England there
is a longer grace period of 14 days for late payment of rent before
interest can be charged. In respect of the replacement of a lost key, the
landlord or letting agent in England can charge the reasonable costs as
opposed to the actual cost of replacing a key.
There have been updates to the template assured shorthold tenancy
agreements (ASTs), lettings agency fee list and guidance notes on the
Renting Homes (Fees etc.) (Wales) Act 2019, in light of these new
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific