THE LAW GOVERNING THE LETTING OF RESIDENTIAL PROPERTY IN WALES IN CHANGING
Landlords are to experience some of the biggest changes to affect the Private Rented Sector in a very long time. New legislation for the letting of property in Wales has been introduced by the Welsh Government that will be effective from 15th July 2022, something all new and existing landlords must be familiar to ensure they act within the law.
The Renting Homes (Wales) Act 2016 replaces historical legislation with one clear framework releasing legislation covering several regulations including those covering Fitness for Human Habitation, Explanatory Information for Written Statements of Occupation Contracts, Prescribed Information and Deposit Schemes.
Northwood Estate and Letting Agents in Wrexham is one of the first to be approved by Rent Smart Wales to administer the new legislation. All its staff have received professional training on which they have been assessed, the first of its kind to be recognized by Rent Smart Wales. During the past 18 months it has prepared for the introduction of the new legislation, ensuring its landlords and their properties are compliant.
OCCUPATION CONTRACTS
Most current tenancies and licenses will be replaced with one of two kinds of occupation contract. This means that landlords will no longer refer to property and their tenants, no tenancy can be an Assured Shorthold Tenancy or Prescribed Information issued in its present format; the terminology and legal framework changes so that the landlord must let their dwelling to individual Contract-holders party to an Occupation Contract.
The significant features of these contracts include:
- Fitness for human habitation obligations on landlords
- Address retaliatory eviction
- Increased notice period for rent increases
- Enhanced succession rights
- New procedure for repossessing abandoned dwellings
- ‘No Fault’ Section 173 notice requesting possession set at 6 months notice
- Restrictions on issuing notice in the first six months after a contract holder moving in
- Six-month restriction on repeat Section 173 notice and six-month restriction on issuing after retaliatory eviction
- Ending a contract and early termination by contract holder
The occupation contracts must contain certain elements:
- Key Matters
- Fundamental Terms
- Supplementary Terms
- Additional Terms
Written Statements
There is a requirement for a written statement of the contract to be provided within 14 days of the date the contract-holder(s) become entitled to occupy the dwelling.
REPAIR AND CONDITION
This is a key element of the legislation requiring that every dwelling must be Fit for Human Habitation. In particular, the Housing Health and Safety Rating System is applied when considering what is a dwelling fit for human habitation. Some significant changes to legislation with which a landlord must comply include:
Smoke Alarms
All landlords MUST ensure that their property is fitted with inter-linked smoke alarms, on each storey connected to the electrical supply, have written records that they have been tested and that they have not expired. Converted contracts have 12 months in which to have wired smoke alarms fitted.
Carbon Monoxide Detector (Alarm)
The Fit for Human Habitation regulations require that a Carbon Monoxide (CO) Detector (alarm) MUST be present in any room containing an oil, gas or solid fuel burning appliance. Converted contracts require that CO alarms are fitted by the 15th July 2022.
Electrical Installation Condition Report
A landlord is required to have the electrical installation of the dwelling tested, at the recommended interval, not exceeding every five years. An Electrical Installation Condition Report (EICR) and conformation of electrical works carried out during the period of the contract MUST be made available to the contract-holder within seven days of the occupation date or within seven days of the works having been completed, as appropriate.
Failure to comply with the Fit for Human Habitation regulations may prohibit or delay a notice seeking possession.
Compensation
A landlord may become liable to pay compensation to the contract-holder(s) where they fail to comply with the legislation. Compensation payable would be equivalent to the amount of rent that is payable under the contract for each day, after the first 14, when a written statement has not been provided.
Fees
It is a criminal offence for a landlord or letting agent to require a prohibited payment under or in connection with a standard occupation contract.
CONVERTED CONTRACTS
On the 15th July 2022, all existing qualifying tenancy agreements will automatically convert to an occupation contract. The existing terms of converted contracts continue to have effect providing they do not conflict with the fundamental provisions of the Act which become incorporated as terms of the contracts. Conversely, supplementary provisions which apply to the occupation contract are incorporated into the contract unless they conflict with the existing terms of the contract. An existing landlord must now consider whether their existing terms are compatible with the fundamental terms of the new occupation contract.
COMPLIANCE
Giving landlords peace of mind, all properties under the management of Northwood Estate and Letting Agents in Wrexham are fully compliant ahead of the new legislation being introduced, having Smoke Alarms connected to the mains electrical supply, Carbon Monoxide detectors (alarms) fitted and Electrical Installation Condition Reports made available to its tenants. All our tenants will benefit from their existing tenancy agreements being replaced with occupation contracts and written statement prepared at no additional cost to landlords.
SPECIAL OFFER TO LANDLORDS
Switch to Northwood Estate and Letting Agents in Wrexham and receive free conversion to occupation contracts and professional advice to ensure you are compliant with the new laws governing letting property in Wales. All landlords entering into a Guaranteed Rent or Fully Managed Service agreement before 15th January 2023 will receive a free fitted Carbon Monoxide Detector.
ENERGY PERFORMANCE
Does your property meet the minimum requirements of the energy efficiency standards that must be met when letting your property? Stephen Bithell is a qualified Domestic Energy Assessor and former Director of an accredited Green Deal Assessor Organisation, having over 25 years specification, installation and management experience working within the gas, electrical and solar energy business. All landlords receive free and impartial advice on how they can improve the energy performance of their property to meet the minimum standards minimizing the risk to their rental income.
