Call to action: Consultation on new tenancies in Wales
The NRLA is urging landlords to respond to a Welsh Government consultation on the new model occupational contracts (tenancies) that are due to be introduced next year. The consultation closes on 16 June 2021 and can be responded to here.
It is being conducted ahead of the implementation of the Renting Homes Act in Spring 2022. When the Act is implemented, these model occupational contracts (MOC) will replace current tenancy agreements and will impact the business of all landlords across Wales. The draft MOC can be read on p.46 of the consultation document, with further details on what can be modified here.
To ensure the NRLA’s response reflects what landlords think of the regulations, we are seeking your views on the proposals and ask that you take our short survey.
But first we look at what is a Model Occupation Contract and what does this mean for you and your business.
What is a Model Occupation Contract?
Model Occupation Contract (MOC) is a change in terminology for tenancy agreements, but both serve the same purpose. The same goes for tenants, who will be known in law as “contract holders” when the Renting Homes Act comes into force.
One aspect of the new MOC is the written statement. This is a change in the law in Wales as a tenancy agreement will have be in this contractual, written form when the Act is implemented. The written statement must contain explanatory information to make the contract as clear and comprehensible as possible.
As required by law, the written statement must contain:
- Names of the parties to the contract
- Terms of the contract addressing “key matters” (e.g. occupation date, amount of rent, etc.)
- Fundamental terms that deal with the essential rights and obligations of landlords and contract holders (e.g. anti-social behaviour, grounds for eviction) – some of these can be amended or removed, but some cannot
- Supplementary terms that deal with more practical matters which help to make the contract work (e.g. a contract-holder’s requirement to pay rent, a landlord’s right to access to the dwelling, etc.) – these can be modified or omitted by agreement between the landlord and contract-holder
- Additional terms that are not identified in the fundamental or supplementary terms (e.g. keeping a pet) – these must be agreed between the landlord and contract-holder but any such terms that contradict fundamental or supplementary ones are void.
Any changed or omitted terms must be identified in the contract, so contract-holders are aware which clauses were previously present or what they looked like before modification.
With a year to go until the Renting Homes Act brings about the most significant change to the Welsh PRS in a generation, the NRLA will make sure to keep you updated along the way. What's next for the consultation? Next week we will look at fundamental clauses in MOCs and our final blog will conclude with an explainer on supplementary terms.