Renters' Rights Bill: How will it impact Wales?
The Renters’ Rights Bill aims to “transform the experience of private renting” and will, when implemented, primarily affect tenancies in England.
The Bill will abolish fixed term tenancies, end the Section 21 or ‘no fault’ route to possession, and introduce new rules around in-tenancy rent increases. But how will it affect landlords and tenants (or contract holders) in Wales?
Changing practices in Wales.
Most of the Bill’s provisions will apply only to England, but some will extend to Wales (and Scotland) as well. There are several key changes ahead that landlords operating in Wales should be aware of.
• Ban on discriminatory practices: The Bill will make it unlawful for landlords and agents in Wales to discriminate against prospective tenants with children or those in receipt of benefits. Properties will no longer be able to be marketed with blanket bans on families or benefit recipients. Instead, landlords will need to consider applicants’ individual circumstances to determine whether a property is suitable. Importantly, nothing in the Bill will prevent a landlord from considering an applicant’s income.
• Mortgage and insurance restrictions: Existing mortgage or insurance agreements with discriminatory restrictions will remain valid until they expire or are renewed. However, once the Bill is implemented, such terms will not be enforceable in new agreements, meaning landlords cannot be compelled to discriminate by their mortgage lender or insurer.
• Additional powers for the Welsh Government: The Bill will grant more powers to the Welsh Government to expand the ban on discriminatory practices to other groups, though the Welsh Government has yet to specify which categories may be included and will likely consult on any changes beforehand.
What will landlords need to do?
Once the Bill is in force, landlords will need to amend the fundamental terms of their occupation contracts. Although the specific wording is not yet confirmed, landlords should prepare to issue updated written statements or statements of variation within 14 days of commencement.
When will the changes apply?
The UK Government has suggested that the new regime could be in force by summer 2025. However, the Bill affords powers to the Welsh Government to set its own timeline for implementing the ban on discriminatory practices.
This means once the Bill receives Royal Assent, that the ban could be implemented sooner or later than equivalent measures in England.
