Important update in Wales: Occupation contracts
The Welsh Government amended the Occupation Contract template documents this week. NRLA Head of Policy James Wood explains what landlords in Wales need to do.
Landlords in Wales need to update their occupation contract templates, after the Welsh Government amended the documents this week.
The change was made on Wednesday (December 6) when the Welsh Government amended the explanatory information part of the contract.
The new wording makes it clear that landlords can issue an occupation contract prior to occupation.
This wasn’t made clear in the original document, and some people had argued the written statement of the contract could not be given validly, or become binding on a tenant before they had moved into the property.
This amendment clarifies that it is not the case and landlords can safely issue their contracts prior to the start date.
The NRLA had taken the view that this was always the case, but it is welcome to see clarification on this point.
The Government also took the opportunity to correct a number of typos and errors in its model occupation contract.
Occupation contracts were brought in, in Wales under the Renting Homes (Wales) Act – replacing tenancy agreements – and must include certain mandatory information or terms.
If these mandatory elements are not included, the landlord can potentially be liable to pay penalties to their tenants for providing an incomplete or incorrect written statement.
Sometimes, the Welsh Government will amend or add to the required information that must be in the contract.
Action for landlords
As the required information has been updated, landlords will need to update their current contract templates if they have not already done so.
Going forward, any new contract should include the new information or risk being incomplete or incorrect. The NRLA has updated both of its contract templates and members can download this here.
For landlords with ongoing tenancies, nothing needs to be done until a new contract is agreed. Only the explanatory information has been updated, not any of the fundamental or supplementary terms. As a result, you are not required to issue a statement of variation to your contract holders for this change.
Further changes on the horizon
While it mostly covers England, when the Renters (Reform) Bill becomes law, it will add new fundamental terms to occupation contracts in Wales. These terms cover rules around discrimination against families and tenants in receipt of benefits.
When this does become law, all landlords in Wales will need to issue a statement of variation and update their contracts. NRLA members will be notified of these changes and provided with the tools to ensure compliance when it is needed.
If you're a private landlord in Wales, take a look at our Wales hub which includes resources and support for private landlords on the Renting Homes (Wales) Act and more.
