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This article has been updated after a new version of the regulations was announced, which took effect on 28 February 2020.
The Renting Homes (Fees etc.) (Holding Deposit) (Specified Information) (Wales) Regulations 2019 commenced on 28 February 2020. The Renting Homes (Fees etc.) (Specified Information) (Wales) Regulations 2019 are revoked from 10 December 2019.
Under the Renting Homes (Fees etc.) (Wales) Act 2019, a holding deposit of up to one week's rent is a permitted payment. However, under the Act, there is a provision for specified information to be provided to the prospective tenant before the landlord or agent receives a holding deposit.
No information requirements apply for any holding deposit received before 28 February 2019.
Firstly, it’s important to stress again the before element of this legislation. The information described in the regulations must be given to the prospective tenant before receiving any holding deposit.
The regulations provide the following information must be given:
A draft of the occupation contract is to be given because it says the landlord (or agent) must provide any proposed additional contract terms or modifications to fundamental or supplementary terms or terms proposed to be omitted from the contract.
Furthermore, a copy of the application form or extensive details as to the questions being asked provided is also needed because the regulations require that we provide:
information the landlord or letting agent requires from the prospective contract-holder
Concerning how to give the information outlined above, it may only be given in person or, if consent is first obtained, it can be sent electronically:
The information must be provided to a prospective contract-holder in writing and may be given in person or provided by electronic means if the prospective contract-holder consents to receiving it electronically.
Providing all this electronically will be the preferred method, but how do you get consent before giving the information?
The usual procedure is a contract holder will enquire to arrange a viewing. A viewing is held, and they will contact you by email or telephone to express an interest.
Before giving all this information, you'll need an extra step to gain consent to provide it electronically, and if they don’t respond, it will need to be given in person or by post.
Our form has been updated and can be downloaded here.
If a holding deposit has been received, but all the information outlined above has not been provided, the holding deposit will have to be repaid to the tenant even if the tenant decides not to take a tenancy or the landlord/agent has made all reasonable attempts to get a contract signed but the tenant failed to do so (except where the tenant provides false information).