The Welsh Government has introduced a bill to ban the charging of fees for many standard tenancy transactions in the private rented sector.

This has the potential to save tenants many hundreds of pounds and follows similar steps taken in Scotland and at Westminster.

The Renting Homes (Fees etc) (Wales) Bill will prohibit landlords and letting agents from charging for basic activities such as viewing properties, signing contracts, renewing tenancies and receiving an inventory, or checking out. Under the proposed new law, tenants who comply with their tenancy agreement will only be required to pay rent plus security and holding deposits. Holding deposits paid to reserve properties would be capped at one week’s rent.

Councils will be allowed to hit landlords and agents attempting to charge tenants fees banned under the legislation with a £500 fixed penalty, or take them to the magistrates’ court with the potential for an unlimited fine if they fail to pay. Offenders could also face losing their landlord licence through the Rent Smart Wales scheme.

Rebecca Evans, housing and regeneration minister for the Welsh Government, said: “Fees charged by letting agents often present a significant barrier to many tenants, especially those on lower incomes. In most instances they will only need to pay their monthly rent and a security deposit. I want renting to be a positive and widely accessible choice for people, and this bill will ensure that rental costs become more reasonable, affordable and transparent.”