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Welsh landlords are set to face one of the biggest changes in Welsh housing law in decades. The long-awaited Renting Homes (Wales) Act 2016 will be implemented on the 15th of July 2022. The legislation will make changes to a broad array of areas, ranging from the introduction of standard occupation contracts, through to extended notice periods and enhanced safety requirements. The aim is to provide additional support and protection for tenants and contract holders.
Some of the key changes include:
- The introduction of Standard Occupation Contracts, to replace existing tenancy agreements.
- The requirement to provide a minimum of 6 months’ notice when landlords issue no fault evictions.
- Enhanced safety requirements, such as the need to include wired smoke detectors on every floor and Electrical Installation Condition Reports at least every five years.
Introduction Of Standard Occupation Contracts
One of the headline changes introduced by The Renting Homes (Wales) Act 2016 is the introduction of Standard Occupation Contracts. Under the act, tenants and licensees are called ‘contract-holders’ and are to be issued with ‘occupation contracts’, which will replace tenancy and license agreements.
Types of New Welsh Standard Occupation Contracts
There are two types of occupation contracts which can be used. The first being a secured contract, which is to be used by community landlords (local authorities and housing associations). The second is a standard contract, which will be the default agreement for landlords operating in the private rental sector.
Standard Occupation Contracts for Existing Tenancies
Landlords with current tenancies will be required to issue a ‘written statement’ of the occupation contract to all ‘contract-holders’ (tenants). This will replace the current tenancy agreement and will contain all the relevant terms of the contract. Existing tenancy agreements will ‘convert’ to the relevant occupation contract on the day of implementation, and landlords have a maximum of six months to issue a written statement of the converted occupation contract to their contract-holders. The written statement can be issued in hardcopy or, if the contract-holder agrees, electronically.
Standard Occupation Contracts for New Tenancies in Wales
For new tenancies after the 15th of July 2022, landlords must issue a written statement within 14 days of the occupation. The Welsh Government have produced model written statements that can be used as a template for both new and converted contracts. The templates can be found online, on the Government website.
Ending Standard Contracts in Wales
The new legislation also includes a shake up to no-fault evictions, increasing the notice period to 6 months. Where there is evidence that a contract-holder (tenant) has breached the occupation contract (tenancy agreement), the minimum notice period remains one month, or even less in cases that relate to anti-social behaviour or serious rent arrears. However, where a no-fault notice is issued, landlords must give tenants a minimum of 6 months’ notice before eviction. Equally, landlords will not be able to issue such notices until at least 6 months after the contract starts, meaning that tenants will be able to reside in a property for at least 12 months before a no-fault eviction can be enacted.
The legislation also notes that landlords will be unable to issue no-fault evictions if they have not complied with a set of minimum necessary obligations, namely registration and licensing with Rent Smart Wales and following deposit protection rules.
“Contract-holders in Wales will have the greatest protection from the start of their contract than in any other part of the UK.”
Julie James, Welsh Minister for Climate Change
Landlord break clauses will only be able to be incorporated into a fixed term occupation contract if the contract has a fixed term of 2 years or more. A landlord will not be able to exercise a break clause within the first 18 months of occupation.
New Safety Requirements for Rental Properties in Wales
The Renting Homes (Wales) Act 2016 stipulates that all landlords must ensure that their properties are fit for human habitation (FFHH). Simply, the property must not be in a condition of disrepair. Section 92 of the Act expands on this, stating that landlords’ obligations extend to:
- the structure and exterior of the dwelling (including drains, gutters and external pipes), and
- the service installations in the dwelling, such as those:
- for the supply of water, gas or electricity,
- for sanitation, and
- for space heating or for heating water.
Landlords must keep the dwelling in repair at all times. It is permissible for the property to be in disrepair in cases where the landlord is not informed or does not have knowledge of the need for repair. However, once the landlord has been informed, all repairs ‘must be carried out in a reasonable time and to a reasonable standard’.
Fitness for Human Habitation in Wales
The new legislation highlights 29 ‘matters and circumstances’ which should be considered by landlords when determining whether or not a property is fit for human habitation. The list includes both the problems, and the potential actions landlords might take to resolve the issue, making for reasonably interesting reading.
As well as the 29 matters and circumstances for landlords to consider, there are three key requirements which landlords in Wales must ensure that they follow:
- ensuring the presence of smoke alarms in proper working order
- ensuring the presence of carbon monoxide detectors in proper working order
- ensuring the inspection and testing of the electrical installations
Smoke Alarms in Welsh Rental Properties
Firstly, Welsh landlords are required by law to ensure that smoke alarms are present on every storey of a dwelling and are all in proper working order, connected to the electrical supply and inter-linked with all other smoke alarms. Further information on recommended smoke alarms and their fitting can be found here. Secondly, carbon monoxide alarms must be present in any room which has a gas, oil or solid fuel burning appliance installed.
Electrical Standards in Welsh Rental Properties
Thirdly, landlords should ensure that the electrical wiring and appliances within their properties are tested and certified by a qualified and registered electrician. Once a periodic inspection and testing (PIT) has been carried out, the registered electrician will issue an Electrical Installation Condition Report (EICR). This will confirm that the electrical installations are satisfactory for continued use, or inform landlords of any deterioration, defects or dangerous conditions.
Landlords must ensure EICR’s are conducted every five years or less if specified. The properties current EICR must be made available to the contract-holder (tenant) within seven days or the occupation date, or seven days of the inspection date if carried out mid-tenancy. Finally, landlords must provide tenants with written confirmation of all investigatory and remedial work carried out on the electrical installations of a property as a result of recommendations made by the EICR.
