The next item is the Stage 4 debate on the Renting Homes (Fees etc.) (Wales) Bill and I call on the Minister for Housing and Local Government to move the motion—Julie James.

Motion NDM7022 Julie James

To propose that the National Assembly for Wales in accordance with Standing Order 26.47:

Approves the Renting Homes (Fees etc.) (Wales) Bill.

Motion moved.

Diolch, Llywydd. I have it in command from Her Majesty the Queen to acquaint the Assembly that Her Majesty, having been informed of the purport of the Renting Homes (Fees etc.) (Wales) Bill, has given her consent to this Bill.

Llywydd, I move the motion.

I am pleased to open this debate on the Renting Homes (Fees, etc.) (Wales) Bill following the completion of Stage 3 last week. As Members will know, the Bill was introduced by the Minister for Finance and Trefnydd in her former role as Minister for Housing and Regeneration, and I would like to pay tribute to her leadership, commitment and openness to ideas in seeking to improve the experiences of tenants across Wales by steering the Bill through Stages 1 and 2 of the Assembly's scrutiny. The Bill has key aims of making renting reasonable, affordable and transparent. It does this by restricting in particular the significant upfront costs tenants can face when moving into or between homes.

Many of our constituents, and too often those on low incomes, have been at the sharp end of letting fees. The Bill rebalances the relationship between tenant, agent and landlord, removing any doubt about what costs need to be budgeted for when renting. The reforms brought about by the Bill will help improve the reputation of the sector, which has become increasingly important in recent years.

The Bill's development was informed by the almost 700 responses we received to our consultation with stakeholders, which gave us a robust evidence base for bringing forward the legislation, and I am grateful to all those who contributed. As always, the scrutiny process has helped sharpen our initial proposals, and I would like to pay tribute to the work of the members and officials of the Equality, Local Government and Communities Committee in leading this work. I also wish to acknowledge the efforts of stakeholder groups representing the interests of tenants, agents and landlords to this process, who either gave evidence in writing or in person.

As with most Bills, both the Constitutional and Legislative Affairs Committee and Finance Committee have examined its provisions thoroughly as they apply to their interests. I am grateful for their work in this area.

Last week, Members provided thoughtful and considered responses to the Stage 3 Plenary debate on the Bill. There has been and remains a cross-party consensus on the need to legislate, and I am grateful that last week's discussion reinforced that view. The reports prepared by the committees have been valuable in helping us identify aspects of the Bill that were improved by amendments made at Stages 2 and 3. There has been a particular interest in the arrangements we have made to enforce the Bill, which have been strengthened further since the Bill was introduced by increasing the level of fixed penalties and also the extension of enforcement powers to the landlord and agent licensing authority, currently Rent Smart Wales.

The Bill also now restricts the issuing of no-fault eviction notices, and ensures that utilities payments are permitted payments. I'm grateful to David Melding and Leanne Wood for the collegiate way in which they have worked with us on these matters. We have listened to arguments about the treatment of payments required when a contract holder defaults against the terms of their contract. As a result, the Bill now includes a regulation-making power that will restrict the use of default payments by setting a prescribed limit on them.

I know there is considerable interest in commencing the Bill as soon as possible so that tenants can begin to benefit from no longer having to pay letting fees. Leanne Wood argued most passionately on behalf of students who wish to see fees banned in time for the start of the new academic year this autumn. That is my wish as well. Subject to the passage of the Bill through this final stage and subject to Royal Assent being granted, I intend for the Act to be commenced by the autumn. At that point, we will have in place an Act making renting more attractive, an Act that will reduce the up-front costs of renting to a minimum, and an Act that has robust restrictions and enforcement arrangements in place to further address the behaviour of rogue agents and landlords. 

Diolch yn fawr, Llywydd.

I'm very pleased to speak at the final stage of this important piece of legislation today. As I said at the outset, at Stage 1, this Bill is just one step in the effort to build a housing market that is fit for the future. It is indeed unfair that tenants across the country should be stung by unexpected and unreasonable costs, and that is why I'm happy that we will be banning those fees, alongside other measures to make renting fairer and more transparent.

For us in the Welsh Conservatives, the most important aspect of this Bill was the need to balance and protect the rights of both landlords and tenants. That's been very much behind my approach in drafting amendments at Stages 2 and 3, and I'm very glad that some of my amendments have passed in one way or another. This includes, firstly, an amendment that gives Rent Smart Wales the ability to issue fixed-penalty notices—this amendment that I brought forward at Stage 2, but  which then the Government amended and brought forward themselves at Stage 3—and, second, my amendment that prevents the landlord from issuing a possession notice to the tenant when a prohibited payment has been issued and has subsequently not been repaid. This was passed at Stage 3 last week, following close co-operation with the Minister and her team, and I thank the Minister for working with me in that manner. There were other amendments, Llywydd, that I thought would have strengthened the Bill that have not been adopted, but I am happy to settle for the three quarters of a loaf in this instance.

For all those landlords and tenants who are co-operating in a harmonious way, I say to them today that they have nothing to fear from this legislation. This will help them in the long run, because, alongside other pieces of legislation that have strengthened this area that have been passed in this Assembly, we will weed out those who are undertaking unscrupulous practices and we will strengthen thereby the market, and especially make it more conducive for responsible landlords and agents. And I think it's a crucial part of what we're doing.

Over the last decade, the private rented sector has grown both in absolute numbers and in proportionality, mostly at the expense of owner occupation. If the trend continues, the private rented sector will become the second most prevalent accommodation type after home ownership. It is anticipated to reach 20 per cent of total housing stock by 2020, just next year. It is a market that is here to stay.

It is important that we got this legislation right because the sector is becoming increasingly important in meeting housing need, and we have been in the fortuitous position, in respect of trial and error and learning from others, that both the Scottish Government and the UK Government have taken this legislation forward before us, and this is something that I've tried to reflect in my approach and in my scrutiny. In fairness, also I think the Government has been quite aware of that as well. 

In conclusion, Llywydd, I'm content that this Bill strengthens the rights of all those involved in the sector and helps rebuild the trust between landlord and tenant. I urge all Members to support this legislation at its final stage today.

Leanne Wood.

No, thanks.

The Minister to respond. 

Do you wish to—?

In accordance with Standing Order 26.50C, a recorded vote must be taken on Stage 4 motions. So, I defer voting on this motion until voting time.

Voting deferred until voting time.