On Monday, the Rent Smart Wales scheme launched, applying to all Welsh landlords and letting agents.
Landlords and agents must register themselves and their properties and become licensed. This costs £3,728 for agents that apply online, but more for those using paper applications. The Association of Residential Letting Agents (ARLA) states that it was never consulted on these fees.
ARLA has filed a Freedom of Information request, demanding a breakdown of the figures from the Welsh government.
In an email to ARLA members, Managing Director David Cox expressed his irritation.
He wrote: “We are frustrated by the approach taken by the Welsh government in not making information available prior to the Rent Smart Wales launch date.
“This has jeopardised the goodwill of agents who are at pains to comply with the law and to continue to offer high quality service to landlords and tenants.”
Cox also addressed the other new legal requirement that was enforced on Monday, for all letting agents in Wales to display their fees.
ARLA insists that it knew nothing of this law until last week.
Cox continues: “Within this context, we urge our members to continue to work on the new requirement on displaying your fees.”
He adds: “The cost of licensing is far higher than expected. We are disappointed that ALRA was not consulted on these fees and are demanding under the Freedom of Information Act that the Welsh government provide a breakdown of the calculation of these figures.”
Cox believes that the license conditions will require agents in Wales to have professional indemnity insurance in place, offer Client Money Protection and belong to an independent redress scheme.
Cox told members that he anticipates “updating you on our discussions with the Welsh government soon”1.
The Welsh government says that its new regulations are a template for the rest of the UK.
ARLA’s Freedom of Information request can be found here: http://i.emlfiles1.com/cmpdoc/6/9/5/5/4/files/336151_foi-request-rent-smart-wales-nov-2015.docx.pdf?dm_t=0,0,0,0,0