Huge changes to the rental market in Wales are set to be introduced in six weeks, affecting both landlords and tenants alike. The Renting Homes (Wales) Act 2016, introduced from December 1, is set to be the biggest shake up to housing laws in Wales for decades.
Pushed back from July 2022 in order to give the housing market more time to recover from the coronavirus pandemic, the act aims to improve how properties are rented, managed, and lived in and, according to Climate Change Minister Julie James, will make the renting process 'simpler and more transparent.'
However, as the start date of the new regulation approaches, the private rental market has been thrown into chaos. There are reports that landlords are choosing to leave the rental market completely, tenants being issued with short-notice evictions as landlords opt to evict before the new legislation is enforced, and housing supply pinch points meaning fierce competition for properties. You can read more about that here.
As a result of the act, the landlord will have to provide a written copy of the occupation contract to the tenant (called the ‘contract-holder’ in the legislation). 'No-fault' notice periods will be increasing from two months to six months. It will no longer be possible to issue a notice in the first six months, meaning all contract-holders will have a minimum 12 months of security at the start of their tenancy.
Strengthened rules on landlord-maintained properties will be brought in, as will be rules to address the practice of 'retaliatory eviction' (whereby a landlord serves notice on a tenant because they ask for repairs, or complain about poor conditions).
As recently as this week ministers have been discussing the new law, as it looks likely to be expanded to more tenants six months after it is first introduced in December. Welsh ministers want to expand it to include tenants on rolling contracts (with no end dates) after acknowledging it left this group in a vulnerable position. This is currently under consultation and would come in to force in June 2023.
Here are the massive changes coming to the rental market in Wales from December 1 and how it will affect you:
Some of the main changes brought in by the Act will include:
- All landlords being required to provide a written copy of the occupation contract to the tenant (called the ‘contract-holder’ in the legislation). This sets out the rights and responsibilities of both parties.
- 'No-fault' notice periods increasing from two months to six months. It will no longer be possible to issue a notice in the first six months, meaning all contract-holders will have a minimum 12 months of security at the start of their tenancy.
- A strengthened duty on landlords, to ensure the property they rent is fit for human habitation including the installation of smoke and carbon monoxide alarms, and regular electrical safety testing.
- Addressing the practice of 'retaliatory eviction' (whereby a landlord serves notice on a tenant because they ask for repairs, or complain about poor conditions).
- The introduction of a consistent approach across sectors to eviction where antisocial behaviour and domestic violence, occurs.
Who is affected by the new law?
All social and private tenants will see some changes:
- in the way their contracts are provided
- in the way their homes are maintained
- to how they communicate with their landlords
All social and private landlords, including those who rent their properties through management companies or agents, will need to:
- comply with the new law
- make the necessary updates to their properties and paperwork
What the law means for landlords
- These are two types of contract: ‘Secure’ for the social rented sector and ‘Standard’ for the private rented sector.
- There are some key things that will need to be included in each contract; i.e names and addresses, details of the possession procedures and the landlord’s obligations regarding repair. It also deals with the more practical, day to day matters applying to the occupation contract, for example, the requirement for a contract-holder to notify the landlord if the property is going to be empty for four weeks or more. This is where special requirements will also be detailed, for example, keeping pets.
- Changes to the ending of contracts. Where the contract-holder has breached the occupation contract the minimum notice period that must be given is one month. This notice period can be shorter where it relates to a breach of anti-social behaviour or the serious rent arrears terms. Where a ‘no fault’ notice is issued, the minimum notice period that must be given is six months. A landlord will not be able to give such a notice until six months after the contract starts.
- Repairs and conditions of rented properties. Landlords must ensure properties are fit for human habitation (FFHH). This will include, for instance, electrical safety testing and ensuring working smoke alarms and carbon monoxide detectors are fitted. In addition, rent will not be payable for any period during which the dwelling is not fit for human habitation.
- Joint contracts. A joint contract-holder will be able to leave a contract without ending the contract entirely. New joint contract-holders can be added without having to end the current contract and start another one.
- Enhanced succession rights. Enables both a ‘priority’ and ‘reserve’ successor to succeed to the occupation contract. This allows two successions to the contract to take place, for example a spouse followed by another family member. In addition, a new succession right for carers is created.
- Abandonment. Landlords can repossess an abandoned property without needing a court order, after serving a four week warning notice and carrying out investigations.
What the new law means for tenants
Under the new law, tenants and licencees will become 'contract-holders'. Tenancy agreements will be replaced with 'occupation contracts'. The government says the new law will make renting easier and provide greater security.
- landlords must give tenants at least six months’ notice (a ‘section 173’ notice in the Act) to end the contract, providing they do not break a term of the contract, often called a ‘no fault’ notice (increased from two months’ notice);
- No fault notices cannot be issued until six months after start of tenancy (the ‘occupation date’ of the contract).
- If the landlord has not acted on the ‘no fault notice’ (so they haven’t used it to try to get possession of the property), they can’t issue another one for six months.
- For tenants on a fixed term contract (which says how long the contract is for) the landlord cannot normally issue a notice to end the contract. If a tenant does not leave, the fixed term contract will usually become what is called a ‘periodic standard contract’ at the end of the fixed term, and the landlord will have to serve a six-month no fault notice to bring this to an end.
- Landlords cannot include a break clause (to regain possession) in fixed term standard contracts of less than two years. If the fixed term is two years or more, the landlord cannot give notice until at least month 18 of the fixed term contract, and will have to give at least six months’ notice.
- Protection against ‘retaliatory eviction’: landlords cannot issue a no fault notice just because tenants have complained the home is in a poor state of repair. The court would need to be satisfied the landlord hasn’t issued the notice to avoid carrying out the repair.
- Joint Contracts: Contract-holders can be added or removed from occupation contracts without the need to end one contract and start another. This will make managing joint contracts easier and help people experiencing domestic abuse by enabling the abuser to be targeted for eviction.
- Enhanced Succession Rights: Enables both a ‘priority’ and ‘reserve’ person (‘successor’) to succeed to the occupation contract. This allows two successions to the contract to take place, for example a husband or wife followed by another family member. In addition, a new succession right for carers is created.
- Abandonment Procedure: Landlords can repossess an abandoned property without needing a court order, after serving a four-week warning notice and carrying out investigations to be sure the property is abandoned.
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Supported Accommodation: For those living in supported accommodation for more than six months, they become entitled to a ‘supported standard contract’. The supported standard contract will operate in a similar way to the standard contract. However, the landlord may include terms in the contract relating to:
- the ability to change where the contract-holder is living within the building; and
- the ability for the landlord to temporarily exclude the contract-holder from the dwelling for up to 48 hours, a maximum of three times in six months.
Read next:
- Six important things to know as a renter in Wales before new law introduced
- The huge problems facing tenants and landlords in the rental market in Wales
- The growing crisis facing Cardiff's rental market with landlords selling up and 100 people fighting for every property
- Family face eviction from home they've lived in for 10 years but refuse to leave
- Woman, 85, being kicked out of home she's lived in for 27 years by Presbyterian Church
