A new registration and licensing system for landlords and lettings agents was introduced in Wales this week, as part of the Rent Smart Wales initiative.

Under the new law, which came into play on Monday, with a view to improve letting and management standards for people who rent private accommodation in Wales,landlords and agents are now required to take part in a new registration and licensing scheme, which forms a key part of The Housing (Wales) Act 2014.

Landlords who need to register, and landlords and agents who need to become licensed, can now register and apply for a licence. They have 12 months from 23rdNovember 2015 in which to comply with the new legislation. During this first year there will be a focus on raising awareness of the new requirements and encouraging compliance.

This new law sees Wales become the first country in the UK where managing landlords and agents are obliged to obtain a new type of licence as well as undertake training to ensure they are aware of their rights and responsibilities.

The new Rent Smart Wales scheme replaces the previous voluntary Landlord Accreditation Wales initiative, which was operated by Cardiff Council on behalf of all local authorities in Wales.

The aim of the new legislation is ultimately to increase awareness among landlords, tenants and agents of their respective rights and responsibilities, as well as improve standards in the PRS.

All private landlords who own a rental home in Wales must register themselves and the addresses of their homes in Wales and those who undertake defined letting or property management activities at a rental property in Wales must apply for a licence.
If a landlord instructs an agent to do such work on their behalf, it is that agent who must become licensed and in order to get a licence a person must be adequately trained, and also declare themselves ‘fit and proper’.

Agents and landlords can undertake licensing training through Rent Smart Wales or a Rent Smart Wales approved training course delivered by another body.

As part of the new legislation, agents in the principality must now openly display all fees, including all fees and charges which may be incurred before or during a tenancy, at each of their premises and on their websites.

Lesley Griffiths (left), the Welsh Minister with responsibility for housing, believes that the new legislation will “improve the situation for tenants”, by informing them of their rights and responsibilities, as well as “help good landlords” by improving the sector’s reputation.

She commented, “We know approximately 184,000 homes in Wales, around one in seven, are now privately rented. With so many people renting, a strong sector with good working practices is absolutely essential.”

But despite the launch of the mandatory registration and licensing scheme for landlords and agents, research shows that awareness of the new Rent Smart Wales initiate is low.

According to fresh findings from the National Landlords Association (NLA), almost 65 per cent of tenants in Wales are unaware of new laws to register and license landlords and letting agents in the country.

Despite low awareness levels among tenants, the findings reveal that 69 per cent say they will feel more confident renting from private landlords and letting agents once they are all registered, and 56 per cent believe that the scheme will help them to find appropriate housing.

Richard Lambert (right), Chief Executive Officer, NLA, insists that the his organisation will be “working hard” to help landlords and agents comply with this new law but he remains unconvinced that a mandatory registration and licensing scheme will provide the benefits the Welsh Assembly says it will.

He said, “As the licensing authority, Cardiff City Council must start working with other local authorities from the outset in order to fine and prosecute those who fail to comply within the year’s grace period.

“Without proper enforcement the scheme will do nothing to stop criminals in the sector but as yet we’ve seen no detail about how Cardiff City Council plans to do this.

“Unless they’re quick off the mark, come next November, there’s a real danger that Rent Smart Wales will amount to little more than just a list of names and it will quickly lose the confidence of tenants who expect it to make a difference.”