Rent Smart Wales slashes agent fees

Rent Smart Wales slashes agent fees

All private landlords are required to register themselves and their properties with Rent Smart Wales, the Welsh Governmentâ€Ã¢â€žÂ¢s registration and licensing scheme which was launched in November 2015.

Landlords and Agents who let and manage property must get a licence by making a declaration that they are ‘fit and proper’ to hold a licence and passing approved training.

Since the launch of the scheme, the City of Cardiff Council, as the single licensing authority for the whole of Wales, has been listening to the feedback and comments received from smaller agents about the £3,728 licence cost.   

A review of the fees, giving consideration to the size of an agent’s business and affordability, has now been completed.

Agent representative bodies - UKALA, ARLA, RICS, NALS - have been consulted and a new fee structure based on the number of properties managed by an agent has now been agreed and will come into effect on April 25.

The fee is graduated based on the size of businesses. Licence costs range from £1,890 to £6,600 for five years depending on number of properties. The fees also take into account whether an agent is a member of a professional body and whether an agent applies online or by paper. Payment options are also available for smaller businesses.


The revised fees are based on estimated costs and resources and are set to fully recover costs to enable effective delivery of the service, but not to make a profit.

Cabinet Member for Environment, Cllr Bob Derbyshire, said: “Since the launch of Rent Smart Wales in November, the broad consensus in relation to the cost of agent licences has been that change is necessary. The City Council has taken on the feedback and reviewed the fees to reflect comments received. The consensus was that the fee structure should reflect the size of the business.  

Rent Smart Wales aims to professionalise the private rented sector by promoting the need for compliance with the law and providing good safe housing for tenants. The costs of delivering the scheme have to be met, but this is a unique scheme in the UK and there will therefore be areas where we will be able to learn from experience. We are particularly grateful to the professional agent bodies who have contributed their views during this review process.”

Landlords and agents have until November 23, 2016 to comply with their new legal obligations as part of the Rent Smart Wales scheme, without fear of legal action. Landlords and Agents need to plan early as it will take time for licence applications to be processed.

David Cox, managing director, Association of Residential Letting Agents, comments: “When Rent Smart Wales first announced the £3728 fee for all agents, we branded this unfair as it didn’t take into account the size of the letting agent business, meaning both the smallest and largest agents would be charged the same amount in fees.

Following our continued lobbying, today Rent Smart Wales has announced a new fee structure that will take effect from the 25th April 2016. The new fee is now graduated and will take into account the size of the business and importantly, offer a discount to ARLA members. This is great news and offers agents a much fairer fee structure which also demonstrates the benefit of professional membership.”

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Latest Comments

CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

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Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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NathanGreen
NathanGreen 16 Jun 2016

Seeing that the tenants are quite satisfied with their landlords and the properties is indeed great. I wonder, though, what is the situation in London alone? The tenants face sky-high rent levels in the...

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AndiMur
AndiMur 15 Jun 2016

TheGuardian published the same forecast. But on the other hand, professional brokers express different opinions. According totranio.com, an exit from the EU would not affect the demand/supply imbalance...

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Gary Holmes
Gary Holmes 14 Jun 2016

Having a professionally completed inventory at check-in and check-out is clearly (to me at least) of minor value. Tenants make un-authorised modifications and/or walk off with items that belong to the

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Violet Gibson
Violet Gibson 14 Jun 2016

Cautious people think buying off-plan is reckless, but over the past few years investors have literally made fortunes.Pre-release prices have obvious benefits for the developer, who gets instant finance...

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Kate Windleton
Kate Windleton 14 Jun 2016

An interesting research indeed. I guess that is in complete contrast with the United States where people often move from one coast to another. It will be interesting to hear the trends for people moving...

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NathanGreen
NathanGreen 14 Jun 2016

I think it all depends on the market conditions and how well your company is doing. You will agree that you can't demand more when you're killing yourself just to hang in there. Sometimes you need all

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