As you may have seen in the news, The Renting Homes Act is the biggest change to housing law within Wales that we have encountered in decades. From the 15th of July 2022 the Renting Homes (Wales) Act 2016 will change the way all landlords in Wales rent their properties. It aims to improve the way we rent, manage, and live in rented homes in Wales.
Who Will Be Affected By This New Law?
There are two types of landlords that will be affected by the act;
- Community landlords (primarily local authorities and registered social landlords)
- Private landlords (all other Landlords)
As well as all private and social tenants, who will encounter changes in three ways;
- The way their contracts are provided
- The maintenance of their homes
- How they communicate with their landlords
What Does This New Law Mean For Landlords?
Changes To Contracts
Under the Act, tenants and licensees are called ‘contract-holders’. Contract-holders will now have an ‘occupation contract’, which will replace the tenancy and license arrangements. The type of occupation contract that most private landlords will have will be called a standard contract. Which is the default contract for the private rented sector.
Ensuring Homes are Fit For Human Habitation
When ensuring a home is Fit for Human Habitation, we must make sure it has had electrical safety testing, and ensure the property has in date and fully working smoke alarms and carbon monoxide detectors.
New Rentals From 15th July 2022
For new rentals after the 15th July 2022, the written statement (the name they give to the document that was previously the tenancy agreement) must be issued within 14 days of occupation under the contract.
Existing Tenancy From 15th July 2022
Existing tenancy agreements will ‘convert’ to the relevant occupation contract on the 15th July 2022, and landlords have a maximum of six months to issue a written statement of the converted occupation contract to their contract-holders. The written statement can be issued in hardcopy or, if the contract-holder agrees, electronically.
Other Changes To Be Aware Of;
Other than changing the primary nature of the agreement, the other main changes that all Landlords should be aware of are as listed below;
- Where a ‘no fault’ notice is issued, the minimum notice period that must be given is 6 months.
- A landlord will not be able to give such a notice until 6 months after the contract starts meaning the minimum term will be 12 months going forward.
- A landlord will not be able to give such a notice unless they have complied with certain obligations, including registration and licensing with Rent Smart Wales and deposit protection rules.
- Landlord break clauses will only be able to be incorporated into a fixed term occupation contract if the contract has a fixed term of 2 years or more. A landlord will not be able to exercise a break clause within the first 18 months of occupation.
- You 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.
- If a landlord issued a ‘no fault’ possession notice in response to a request for repair (commonly known as retaliatory eviction), the court can refuse to make a possession order and it will not be possible to issue a further ‘no fault’ notice until 6 months later.
- 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.
- Enables both a ‘priority’ and ‘reserve’ successor to succeed to the occupation contract. This allows 2 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.
- You are able to repossess an abandoned property without needing a court order, after serving a four-week warning notice and carrying out investigations to satisfy yourself the property is abandoned.
If you would like help or advice on any matters raised here, contact Northwood at wrexham@northwooduk.com
For more information from the Government Website on this new legislation click the button below.
