You’re probably aware of the Renting Homes (Wales) Act which was announced back in 2016. As the name suggests, this affects renting in Wales.
It introduces lots of changes that intend to make it simpler and easier to rent a home, including increasing protection available for tenants (now referred to as “contract-holders” as part of the changes) by the introduction of a single framework.
What it means for contracts
As of the 15th July 2022, The Act will bring in two new occupation contracts to replace the existing tenancy and license agreements (such as the assured shorthold, assured, and secure tenancy agreements).
These new contracts are -
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Secure Contract: This will be the default type of contract issued by community landlords, which includes councils and housing associations
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Standard Contract: This will be the default contract for use by any landlord which doesn’t fall into the community landlord category.
Alongside these, a new document will be introduced which will need to be issued by landlords - a written statement of the occupation contract, which is to be issued to the tenant(s).
The document consists of the fundamental terms relating to the tenancy, including:
- The landlord’s obligations to repairs and property maintenance
- Procedures relating to possession
To go with this, standard terms relating to the general day-to-day matters must be included with every contract, which must be issued within 14 days of moving in. This sets out the rights and responsibilities of the landlord and the tenant(s), including things as simple as the requirement to pay rent on time, and who’s responsible for maintenance of the garden.
Penalties are a possibility for landlords who fail to provide a written statement within the 14-day time frame, so make sure this one is on your list.
Possession changes
There are also a number of changes coming in with a view to supporting tenants, which include:
- A six-month notice period to end a contract on ‘no fault’ grounds (commonly known as a ‘section 21 notice’)
- Such notice can’t be issued within the first six months from the contract start date
- There are certain obligations a landlord has to abide by before they’re able to issue this notice, including registration, deposit protection, and health and safety
- A break clause for the landlord will only be incorporated into a contract if there’s a fixed term of two years or more
- A break clause can’t be exercised within the first 18 months of occupation
To make the contracts easier, however, joint contract-holders can be added or removed from the occupation contracts without needing to end one and start another.
Landlord responsibility for repairs
It hopefully goes without saying that the structure and exterior of the property need to be kept in good standing, and the property needs to be suitable for human habitation.
A landlord will also need to keep installations in good repair and in proper working order, including the supply of utilities - water, gas, electricity, sanitation, and hot water.
Retaliatory eviction
It will be more difficult to evict tenants because of a complaint regarding the condition of the property (commonly referred to as a “retaliatory eviction”). If a court application is refused on the grounds of it being a retaliatory eviction, the landlord will be unable to give a further ‘no fault’ notice for at least 6 months.
Headache for landlords?
We’re working hard to help Reoli understand the different scenarios you may have when renting, including the differences between renting in different areas of the UK.