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How the Housing (Wales) Act 2014 became branded as “Rent Smart Wales” – and how that branding overreaches the law

1. The Housing (Wales) Act 2014: the only source of legal authority

The Housing (Wales) Act 2014 is the sole piece of primary legislation governing landlord registration and licensing in Wales.

The Act:

• Creates the statutory requirements for landlord registration

• Creates the statutory requirements for landlord and agent licensing

• Defines offences, penalties, and enforcement mechanisms

  
  

The Act does not:

• Create an organisation called “Rent Smart Wales”

• Establish a corporate body or quango under that name

• Confer powers on any entity other than a designated licensing authority

  
  

All enforceable power flows from the Act itself.

2. Delegation of administration: how Cardiff Council became the licensing authority

The Act gives Welsh Ministers the power to:

• Designate a licensing authority

• Delegate administration to a local authority

• Issue statutory guidance

  
  

Using these powers, Welsh Ministers designated Cardiff Council as the single licensing authority for the whole of Wales.

This is the critical constitutional step:

Law → Ministerial designation → Local authority administration

Cardiff Council therefore exercises statutory functions under the Act on behalf of Welsh Ministers.

3. Creation of the “Rent Smart Wales” brand (non-statutory)

After designation, Cardiff Council created a public-facing programme identity called “Rent Smart Wales”.

This name:

• Is not created by statute

• Is not a legal person

• Has no corporate or independent legal status

• Was not approved by the Senedd

  
  

“Rent Smart Wales” is simply a service name or brand used by Cardiff Council to deliver its statutory functions.

Branding is lawful, but it is administrative and political rather than constitutional.

4. How Rent Smart Wales functions legally

Legally, when Rent Smart Wales:

• Registers landlords

• Issues or refuses licences

• Imposes licence conditions

• Takes enforcement action

  
  

It is Cardiff Council exercising delegated statutory powers under the Housing (Wales) Act 2014.

If challenged:

• The decision-maker is Cardiff Council

• The source of authority is the Act

• The brand name has no independent legal relevance

  
  

5. Where guidance overreaches legislation

A recurring problem arises where guidance, policy, or operational practice goes beyond what the Act actually requires.

The governing principle is simple:

Guidance explains the law; it does not add to it.

Only the Act and properly made regulations are binding.

5.1 “Fit and Proper Person” – discretion hardened into presumption

The Act requires the licensing authority to be satisfied that an applicant is a fit and proper person, having regard to specified matters such as relevant convictions and housing law breaches.

The test is discretionary, case-specific, and proportionate. There is no automatic disqualification written into the Act.

In practice, guidance and officer behaviour often:

• Treat historic or minor matters as near-automatic refusal triggers

• Apply internal policy thresholds not found in statute

• Expect applicants to prove suitability rather than requiring the authority to justify refusal

  
  

This subtly reverses the legal burden and converts discretion into presumption.

5.2 Training requirements – “mandatory” by language, not law

The Act allows training to be imposed as a licence condition. It does not mandate ongoing or refresher training unless expressly required by licence conditions.

Guidance often:

• Presents training as an ongoing obligation

• Implies refresher training is mandatory

• Creates the impression that competence expires by default

  
  

In law, training is only enforceable if imposed as a clear and proportionate licence condition.

5.3 Licence conditions – policy creep beyond statutory purpose

Licence conditions must relate to letting or management activities and must be necessary and proportionate.

In practice, some conditions and expectations:

• Drift into regulating general business practices

• Attempt to mandate internal procedures

• Encourage compliance with non-statutory “best practice”

  
  

Conditions must be justified by statute, not administrative preference.

5.4 Guidance treated as if it were law

Statutory guidance must be considered, but it is not binding and can be departed from with reasons.

Operational reality often treats guidance as:

• Mandatory

• Non-negotiable

• Equivalent to regulation

  
  

This creates de facto regulation without legislative scrutiny.

5.5 Branding and moral framing amplifying overreach

The branding of the regime as “Rent Smart Wales” frames compliance as virtue and non-compliance as irresponsibility.

While lawful as presentation, this moral framing:

• Softens the perception of coercion

• Masks criminal sanctions

• Conditions behaviour beyond what the statute requires

  
  

6. Why this matters

When guidance overreaches legislation:

• Decisions become vulnerable to judicial review

• Enforcement risks becoming ultra vires

• Landlords and agents comply with obligations that do not legally exist

  
  

One-line conclusion

The law is the Housing (Wales) Act 2014; “Rent Smart Wales” is the badge worn by Cardiff Council while enforcing it – and guidance must never quietly expand the statute it claims to explain.

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