Renting Homes Wales - what you need to know
As July 15 2022 approaches, landlords in Wales continue to prepare for the introduction of the Renting Homes (Wales) Act.
Once Renting Homes Wales applies in Wales, landlords will see significant changes to the way they manage their properties. These include:
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changes to the type of possession notice required and the notice periods given;
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changes to what happens if tenants serve notice;
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the introduction of new fitness for human habitation requirements;
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the introduction of retaliatory eviction protection;
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the abolition of the assured shorthold tenancy and replaces it with new occupation contracts;
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the introduction of an abandonment procedure, allowing landlords to take back possession without going to court if the tenant has left without notice;
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requirements to serve a variety of new documents and prescribed forms;
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the legal requirement to introduce a number of fundamental terms into all contracts in Wales.
These rules and requirements are set out in the written contract that landlords must provide to their occupants under Renting Homes Wales so, in theory, for new contracts starting on or after July 15 2022 all parties should be reasonably clear about what they must do.
Pre-existing tenancies
For landlords with existing tenants it is a bit more difficult. These tenancies will convert into occupation contracts but they have different rules and requirements.
In these cases, landlords must compare and contrast their existing tenancy with the new occupation contracts and amend them to be compliant with Renting Homes Wales, removing and replacing any terms with the new fundamental terms where required. After doing this they then issue the occupants with new written terms by January 14, 2023.
This is a complex task, and to assist with this the NRLA has produced a new guide on converting tenancies into occupation contracts.
We will also be publishing a converted occupation contract for members who use the NRLA’s existing ASTs. This document will have all the relevant clauses updated and replaced so landlords can have peace of mind they have complied with the requirement. This will be published once the final round of legislation has been published in May.
Further legislation
Much of the legislation around Renting Homes Wales has now been published, including a wide range of prescribed forms that landlords must use when serving notice, updating their address, increasing the rent, etc.
However, there are a number of matters still outstanding. For example, currently there is no legislation to cover situations where a landlord has served a Section 21 or Section 8 notice prior to July 15, 2022 but wants to apply to court after tenancies convert into occupation contracts. As a result, currently all of these notices are set to become void on July 15.
The NRLA has been assured that this will be addressed in the next round of legislation. Meaning that landlords can continue to serve the existing notices and continue to court where necessary.
The NRLA shadow white paper
In March the NRLA published our shadow white paper ‘The future of Private Renting in Wales.’
The white paper called for a number of sensible improvements to the sector such as:
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the rejection of rent controls, with a focus on improving the LHA rates and boosting supply to meet demand
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a commitment to allowing the Renting Homes (Wales) Act to be properly and fully implemented before embarking on a further round of changes to the sector;
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the provision of more financial support to landlords to help with energy efficiency improvements;
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a final audit on the performance of Rent Smart Wales since its introduction;
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an exemption from the Land Transaction Levy where a landlord is bringing a new property into the PRS, boosting the supply of properties for long term rent;
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a Welsh housing Survey to improve data on housing in wales.
Since its publication, the NRLA has held a number of meetings with members of the Senedd and other campaign groups to make the case in person and find areas where we can work together to make these sensible proposals a reality.
Required training
All Rent Smart Wales licensees who have received their licence since July 2020 must complete approved training by the 15 October 2022 on Renting Homes Wales because it is a condition of their, or their employers, Rent Smart Wales licence.
The NRLA has been working closely with Rent Smart Wales and is now offering approved training on the Renting Homes (Wales) Act 2016 prior to its implementation on the 15 July 2022. With several course dates in May, June and July, book your place on this course now.
