Diolch, Llywydd. Amendment 5 amends Schedule 1 to the Renting Homes (Fees etc) (Wales) Act 2019 and permits payment for a further copy of a written statement of an occupation contract. Broadly, the purpose of the 2019 Act is to prohibit landlords and letting agents requiring payments from contract holders or tenants under a standard occupation contract, unless those payments are permitted under that Act. Those payments that are permitted are set out in Schedule 1 to the 2019 Act. Given that section 31(5) of the 2016 Act states that a landlord may charge a reasonable fee for providing a further written statement, this payment does need to be included in Schedule 1 to the 2019 Act.

Amendment 6 permits the payment of service charges to community landlords and supported accommodation providers in respect of standard occupation contracts, with retrospective effect from the date the 2019 Act came into force. Amendment 7 provides for early commencement of amendment 6 upon Royal Assent, which is considered an appropriate and practical step to reduce the period of retrospection.

As is the case with copies of written statements, the list of permitted payments included at Schedule 1 to the 2019 Act does not currently include service charges—that is, things such as grounds maintenance, the maintenance of common areas of blocks of flats and external window cleaning. The focus of the 2019 Act is on ensuring that contract holders are not subject to additional and/or unreasonable fees charged by letting agencies and private landlords. Most tenancies in the social housing sector will be secure contracts and therefore not subject to its provisions. However, introductory standard contracts, prohibited standard contracts and supported standard contracts issued by community landlords and supported accommodation providers would be subject to its provisions. As a result, service charges in relation to these types of social housing tenancy are prohibited by the 2019 Act. This effect is unintended. Service charges are a necessary element of social housing tenancies, especially in supported accommodation, where the cost of the services necessary to keep vulnerable people safe and suitably housed can be considerable. Amendment 6 rectifies this situation. It adds service charges levied by a community landlord or supported accommodation provider as a permitted payment under Schedule 1 to the 2019 Act, except for situations where a community landlord is undertaking commercial rental activity.

Pending the implementation of the system of occupation contracts to be introduced by the renting homes Act 2016, transitional provision regulations, which came into force in September 2019 at the same time as the 2019 Act, apply certain Parts of the 2019 Act to existing assured shorthold tenancies.  Amendment 6 amends these regulations so that, during the transition period, service charges will be a permitted payment in relation to assured shorthold tenancies in otherwise the same circumstances as they will be made permissible in relation to standard occupation contracts.

The amendments to the transitional regulations retrospectively apply the inclusion of service charges as a permitted payment from the date the 2019 Act came into force, that is, 1 September 2019. The effect of this will be that the service charges levied by applicable landlords will be lawful from that date. Whilst we do not anticipate any adverse impact on tenants of this change, amendment 6 prohibits a landlord that has charged a service charge during that period from issuing a section 21 notice for a period of six months. For similar reasons, two savings provisions are included. The first means that any section 21 notice served before the amendment comes into force remains invalid. The second means that any repayment order made under section 22(1) of the 2019 Act is saved.

Amending the 2019 Act to permit service charges in relation to standard occupation contracts issued in the social housing sector is vital to ensuring that it remains economically viable for providers to make provision for specific groups of vulnerable people. This is especially true in the supported accommodation sector. Ensuring that the change applies retrospectively is critical to ensuring that social housing providers are not caused serious financial harm by having to pay back money previously collected, thus reducing their capacity to make future provision. For these reasons, I urge Members to support amendments 5, 6 and 7.