The Welsh Minister for Housing and Local Government has issued a
Written Statement:
"The Renting Homes (Fees etc.) (Wales) Act 2019 (‘the 2019 Act’)
has had a very positive impact on protecting tenants in the
private rented sector from unfair fees, saving tenants on average
£200 per tenancy.
The large majority of tenancies issued by Registered Social
Landlords (RSLs), also known as housing associations, are not
affected by the 2019 Act. However, as we have noted previously,
the 2019 Act has had an unintended consequence in relation to a
minority of tenancies used by RSLs which are assured shorthold
tenancies. Since its implementation, the 2019 Act has resulted in
a prohibition on the charging of service charges by RSLs and
supported accommodation providers in relation to such assured
shorthold tenancies. This contrasts with the position in relation
to the vast majority of tenancies in the social housing sector,
which are assured tenancies, where no prohibition on service
charges applies.
In recent weeks, and where possible, RSLs have acted to transfer
tenants with an assured shorthold tenancy to an assured tenancy,
which is the predominant RSL tenancy and which offers greater
security of tenure for tenants. Most of the affected tenants
would, in any case, have transferred to assured tenancies at the
conclusion of their assured shorthold tenancy.
My statement of 9 December made clear that the unintended
consequences of the 2019 Act should be remedied as soon as
possible and I committed to keeping Members informed of
developments. Since then, my officials and I have taken a series
of steps to resolve the matter.
Following close liaison with Community Housing Cymru and Cymorth
Cymru, as bodies representing RSLs and supported accommodation
providers, and detailed discussions with the Department for Work
and Pensions, my officials wrote to RSLs and providers of
supported accommodation on 22 December. That letter set out that
we were intending to make a legislative change which would be
retrospective in effect, so that all of the charges which have
been required since the 2019 Act came into force would be
regularised. It explained that in light of the potential harmful
impact on individuals’ benefit claims, officials had agreed with
the Department for Work and Pensions that ceasing to request
service charge payments pending a legislative change would not be
in the best interests of those tenants. The letter went on to say
that the Welsh Ministers would not be seeking to take any action
in respect of this issue against any RSL in its capacity as the
regulator.
On 22 January, officials wrote in similar terms to local
authorities, in light of their enforcement powers under the 2019
Act and their functions in respect of housing benefit payments
and the commissioning of housing support services. That letter
noted that whilst it is a matter for local authorities to
consider how to use their enforcement powers and exercise other
functions that relate to this matter, it is important that they
are able to do so taking full account of the context of this
particular situation.
On 1 February, after first seeking the views of organisations
representing the interests of both social housing providers and
tenants, I tabled two Stage 3 amendments to the Renting Homes
(Amendment) (Wales) Bill (‘the Bill’) that retrospectively add
service charges, made by community landlords (which include RSLs)
and supported accommodation providers, to the list of permitted
payments included in Schedule 1 to the 2019 Act. Those amendments
were subsequently passed by the Senedd during the Stage 3
proceedings held on 10 February.
I am satisfied that, subject to the Bill being passed by the
Senedd and receiving Royal Assent, the amendments it makes to the
2019 Act will resolve the service charge issue and that this
action is in the best interests of all concerned, including
tenants."
https://gov.wales/written-statement-service-charges-levied-some-housing-associations-and-third-sector-organisations-0
