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RENTING RESIDENTIAL PROPERTY IN WALES – A GUIDE TO THE NEW LEGISLATION FOR LANDLORDS
by Nick Clarke , Head of Dispute Resolution and Senior Partner at Aaron & Partners LLP
The law as it relates to rental properties in Wales is changing . The Renting Homes ( Wales ) Act 2016 comes into force on 1 December 2022 , postponed from an initial date in July 2022 , much to the relief of many landlords .
The legislation contains a comprehensive overhaul of the residential rental process in Wales , and for landlords , there are a number of key changes , some of which will require action when the new legislation comes into force .
Tenancy Agreements All new tenancies beginning on or after 1 December 2022 will be entered into under an ‘ occupation contract ’, a statement of which must be given to the tenant ( or ‘ contract-holder ’) within 14 days of them going into occupation of a property .
All existing residential tenancies will automatically convert to occupation contracts on 1 December , and landlords will have 6 months from that date to provide their tenants with a written statement of the converted occupation contract . This will replace any existing tenancy or licence agreement . Both types of written statement must be served in hard copy unless the tenant agrees to it being sent electronically .
The Welsh government has provided model written statements which can be found at https :// gov . wales / renting-homes-modelwritten-statements and a landlord ’ s guide to converting existing tenancy agreements at https :// gov . wales / sites / default / files / publications / 2022-02 / guidance-creating-converted-occupationcontract . pdf
Ending Tenancies In respect of bringing tenancies to an end after 1 December , the current Section 8 and Section 21 notices will be replaced with prescribed form notices on the basis of ‘ fault ’ and no-fault ’ respectively . Where there is no fault on the tenant ’ s part , the minimum notice period will increase from the current two months to six months . Where there is fault on the tenant ’ s part , for example rent arrears or anti-social behaviour , there will be a minimum notice period of one month , replacing the current minimum of 2 weeks .
Landlords ' current obligations in Wales , including being registered with Rent Smart Wales , protecting the tenant ’ s deposit in an approved scheme , and keeping properties ‘ fit for human habitation ’, along with the prohibition of associated retaliatory evictions , will remain .
Whilst the changes may seem onerous for landlords , in particular the obligation to replace all existing tenancy agreements , there are some changes which will be of benefit .
A new process for abandonment of properties is being introduced , which will allow landlords to give four weeks ’ notice if they believe their rental property has been abandoned by its tenants . Once the notice has expired , and a landlord has done some checks to satisfy themselves that the property is genuinely abandoned , they can reenter without the need for a possession order , which will be a big time and cost saving .
Clarity is also being introduced where there are couples or multiple tenants who initially take on the rental property , but one of the tenants later leaves or is replaced by another . The new legislation allows for tenants to be added or removed from the new occupation contracts without having to end it and begin a new one , which is the current process . Again , this will be a potential time and cost saving for landlords .
If you have any concerns about the new legislation , either in respect of drafting new written statements or evicting tenants , please get in touch with Aaron and Partners Solicitors .
For further information , please contact :
Nick Clarke Head of Dispute Resolution and Senior Partner 01244 405558 Nick . clarke @ aaronandpartners . com
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