In January 2022, the Welsh Government announced the new lettings legislation, Renting Homes (Wales) Act would be implemented. It came into force in December 2022 requiring all existing assured shorthold tenancies and licences in Wales to be converted into occupation contracts. Shortly after, they announced that some amendments would be made to its terms due to several regulatory grey areas that could later cause problems for landlords.
Today (1/6/23) is the first day following the deadline that landlords and tenants will begin to experience the shift. Following a complex few months for landlords and agents to implement the changes, what do the changes actually mean moving forward?
What is the Renting Homes (Wales) Act
It is an important piece of legislation in Wales that introduced significant changes to the rental sector by establishing a new framework for renting homes in Wales. The Act aims to provide clarity, simplicity, and improved rights and protections for both landlords and tenants.
What is Changing?
- Existing tenancy types, such as assured shorthold tenancies (ASTs) and regulated tenancies are to be replaced with two new types of tenancies: the "standard contract" and the "secure contract."
Standard Contracts: The Act introduces a standard contract that covers both social and private rented sectors. This contract sets out the rights and responsibilities of landlords and tenants.
Secure Contract: The Act provides increased security of tenure for tenants by ensuring that a tenancy can only be ended in specific circumstances.
- A tenant is now called the contract holder.
- A written statement by the landlord to the contract holder containing its contractual terms is now required.
- Joint contract-holders can be added or removed from occupation contracts without the need to end one contract and then start another to make alterations quicker.
- A Six-month notice period to end contracts where the holder is not at fault must be given.
- Landlords are unable to issue such possession notices during the first six months of occupation. Giving contract-holders a minimum of one year of security from their move-in date
- Contract-holders are also protected from possession notices if the Court can be satisfied that the landlord issued the possession notice to avoid carrying out essential repairs requested by the contract holder.
If you are unsure of any of the information regarding The Rent Home Wales Act, please contact our team who will be happy to assist and advise you.
Read a full list of the changes made here - https://www.gov.wales/landlords-housing-law-has-changed-renting-homes