In 2016 the Welsh Government passed the new Renting Homes (Wales) Act 2016 that came into force from 1st December 2022.
1 December 2022
Here's what landlords need to know...
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Convert exisiting tenancies
Occupation contracts can start verbally, but you must issue a written statement of the contract to all contract-holders (this replaces the current tenancy or licence agreement).
Be aware of new notice periods for possession
No-fault notice (periodic standard contracts only) - six months minimum for new occupation contracts, and can’t be served in frst six months of occupation.
Breaches: No notice period for anti-social behaviour (you can apply to the court straight after giving the notice); 14 days for serious rent arrears (arrears of 8 weeks / 2 months); one month’s notice for other breaches.
Ensure properties are Fit for Human Habitation
Including electrical safety testing and ensuring working smoke alarms and carbon monoxide detectors are provided.
Repossess an abandoned property
without needing a court order, after serving a four-week warning notice.
Contract-holders can be added or removed
Without having to end the current contract and start another one.
Enhanced succession rights means the contract holder is entitled to pass on their home
(Up to two times) to other people that live with them (including a spouse, adult children or a carer) if they die.
The Act has been the biggest change to Housing Law in decades and has affected both the Private and Social Housing Sector. The purpose of the Act has been to make housing laws simpler and easier for all involved as well as offering greater security and certainty to both contract holders and Landlords.
What changes has the Act made?
Overview
- Tenancy Agreement and now referred to as ‘Occupation Contracts’ and tenants have been replaced by ‘Contract Holders’
- Notice periods have been increased – Landlords must now give 6 months notice to leave a property, as long as the contract has not been breached. A notice also cannot be issued within the first 6 months of the contract.
- Changes of contract – Contract holders can now be added or removed without the need to end a tenancy. Contract can now be updated easily allowing contract holders to remain in the property
- Succession Rights – Contract Holders now have increased succession right to pass their home on to another• Repossession – Landlords can now repossess abandoned properties without a court order, providing suitable investigation of the properties abandonment have taken place.
Occupation Contracts
All tenants are now referred to as ‘Occupation Contract Holders’ and all tenancy agreements are now referred to as ‘Occupation Contracts’. There are two types of Occupation Contracts:
Types of Occupation Contract
| Secure Contract | Standard Contract |
|---|
| The default contract issued by “community landlords” (the term used for local authorities and registered social landlords). |
The default contract for use by “private landlords” (all landlords other than community landlords). |
The Act requires that all Landlords issue a ‘written statement’ of these occupation contracts. The list of agreements of the contract are categorised and standardised into set ‘terms’ to make them easier to understand for all involved.
Types of Terms
| Key Matters |
The following key matters must be included in all standard occupation contracts:
- The address of the dwelling
- The occupation date (the date from which the contract-holder is able to occupy the dwelling)
- The amount of rent or other consideration
- The rental periods (for example weekly or monthly)
- Whether the contract is periodic or made for a fixed term
- If it is made for a fixed term, the term for which it is made (how long does the contract run, when does it begin and when does it end)
- Any periods during which the contract-holder is not entitled to occupy the dwelling as a home (for example, to allow university landlords to use their student accommodation for other purposes during non-term time).
|
| Fundamental+ and Fundemental Terms |
Set out within The Act and covering the most important aspects of the contract, including the possession procedures and the landlord’s obligations regarding repair. |
| Supplementary Terms |
These terms deal with the more practical, day to day matters applying to the occupation contract, for example, the requirement to pay rent on time or taking care of the property. |
The Government has created model contracts which can be downloaded free of charge from the Welsh Government website that can amend to be specific for your rental.
Notice Periods
Under the new Renting Homes Act, a Section 21 ‘no fault’ eviction can no longer be issued from the 1st December 2022.
Replacing the Section 21 notice is the Section 173 no fault eviction which requires the Landlord to provide 6 months’ notice and cannot be issued within the first 6 months of tenancy.
A Section 173 also cannot be served during the time of a fixed term standard occupation contract. The Landlord must wait until the fixed term contract becomes periodic at the end of the first term before they can issue the notice.
The six month notice period only applies to occupation contracts which begin on or after 01 December 2022.
For an existing periodic tenancy which began before 01 December 2022, landlords are only required to give two months' notice under section 173, but such a notice must not be served within the first four months of the contract-holder's occupation.
For an existing fixed term tenancy which began before 01 December 2022, landlords are able to serve a section 186 notice to end the contract at the end of the term. Landlords are only required to give two months' notice, but such a notice must not be served within the first four months of the contract-holder's occupation.
If the contract holder wished to end their occupation contract they will need to review the conditions of the contract.
During a fixed term notice, the contract holder cannot end the occupation contract unless the Landlord agrees. The contract will naturally end at the end of the fixed term.
The Renting Homes (Wales) Act 2016 is the biggest change to housing law in Wales for decades and will affect all landlords, agents and tenants.
For more information, please watch this video or visit gov.wales/rentinghomes