Are Renewal Fees Legal for Renters in Wales?

If your fixed-term tenancy in Wales is coming to an end, you might be asked by your landlord or letting agent to pay a 'renewal fee' to continue renting the property. It's important for renters in Wales to know what fees are legal, which are banned, and what you can do if you're wrongly charged. This article explains everything you need to know, using plain English and the most up-to-date information from official sources.

What Are Renewal Fees and Are They Legal in Wales?

Renewal fees are charges that some letting agents or landlords ask renters to pay when signing a new contract for the same property after their initial fixed term ends. These fees are often for 'administration' or paperwork. In Wales, rules around tenant fees changed significantly with the introduction of recent legislation.

Which Legislation Covers Tenant Fees?

The key law is the Renting Homes (Fees etc.) (Wales) Act 2019, which bans most fees charged to tenants for new, renewed, or extended tenancies, including renewal fees.^[1] Only certain payments are allowed by law, such as rent, security deposits, holding deposits, and some default fees for late payment or lost keys.

• Renewal fees - Not allowed
• Administration fees for contract changes - Not allowed
• Letting agent or landlord processing fees - Not allowed
• Security deposits and rent - Allowed

What Should Happen at the End of Your Fixed-Term Contract?

When your tenancy period ends, you can:

• Sign a new fixed-term contract (but no renewal fee can be charged)
• Let your contract roll onto a periodic (month-to-month) basis (“periodic tenancy”)
• Leave the property after giving notice, if required

Your landlord or agent can offer you a new contract, but they cannot require payment of a fee for its renewal or continuation.

What If a Renewal Fee Is Demanded?

If you are asked to pay a renewal fee, you do not have to pay. The law in Wales makes it a criminal offence for landlords or agents to charge banned fees such as renewal charges. You can refuse the fee and remind your landlord or agent that this is not permitted under Welsh law.

How to Challenge Unlawful Renewal Fees

If your landlord or letting agent tries to charge a renewal fee or another unlawful fee, you have the right to reclaim your money or refuse the payment. Here’s what to do:

• Politely inform your landlord/agent that the Welsh Government bans renewal fees
• Request a written breakdown of the fee
• If payment has been made, ask for a refund in writing, citing the relevant law
• If refused, you can contact Rent Smart Wales or your local council’s housing team
• As a final step, consider making a formal complaint to the relevant authorities

Relevant Official Forms and How to Use Them

• Complaint to Local Authority Housing Enforcement: If you believe you’ve been charged a banned fee, you can contact your local council housing enforcement team. There’s no set national form, but you can find your council via the UK government’s council finder tool and request guidance for reporting unlawful fees.
• Application to Tribunal: If you seek a formal refund or dispute resolution, you may apply to the “Residential Property Tribunal Wales” (also known as the Rent Assessment Committee in Wales).
• Residential Property Tribunal Wales handles disputes about residential tenancies, including fee disputes. Application forms are found on the tribunal’s official forms page.

For example, if your letting agent insists you pay a renewal fee and refuses a refund, you can collect your evidence—such as the invoice, correspondence, and payment receipts—and submit these with an application to the Tribunal.

Useful Official Guidance for Renters

• Welsh Government: Tenant Fees Guidance
• Shelter Cymru: Fees and Charges
• Renting Homes Wales: Guidance for Tenants

Welsh law is clear: you should never pay a contract renewal fee for a residential tenancy in Wales. If you are charged such a fee, take action using official routes to resolve it fairly and lawfully.

FAQs: Renewal Fees and Renting in Wales

1. Can my landlord or letting agent charge me a tenancy renewal fee in Wales?
   No, since 1 September 2019, renewal fees are banned. Landlords and letting agents cannot legally charge for contract renewals in Wales.
2. What fees can landlords or letting agents charge me when starting or renewing a tenancy?
   Only certain fees are allowed, such as rent, security deposits, holding deposits, and charges for lost keys or late rent payments. Anything outside these is banned.
3. What should I do if I have already paid a renewal fee?
   You can ask for a refund in writing, referring to the Renting Homes (Fees etc.) (Wales) Act 2019. If refused, you may escalate to your local council or apply to the Residential Property Tribunal Wales for assistance.
4. Which official body handles disputes about unlawful fees in Wales?
   Fee disputes can be taken to the Residential Property Tribunal Wales for resolution.
5. Where can I find official advice on my rights about fees in Wales?
   The Welsh Government’s tenant fee guidance is the best source.

Key Takeaways for Renters in Wales

• It is illegal for a landlord or letting agent to charge renewal fees in Wales.
• You should not pay for contract renewals—report unlawful charges to the local council or the tribunal.
• Official support is available if you feel you’ve been unfairly charged.

Knowing your rights as a renter is the best protection against unlawful charges and helps ensure a fair and secure rental experience.

Need Help? Resources for Renters

• Welsh Government: Tenant Fee Ban Guidance
• Shelter Cymru – Free confidential advice for renters in Wales
• Rent Smart Wales – Welsh Government service for landlord and letting agent regulation
• Residential Property Tribunal Wales – Apply for dispute resolution

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1. [1] Renting Homes (Fees etc.) (Wales) Act 2019
2. Welsh Government: Tenant fees and charges guidance
3. Residential Property Tribunal Wales

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