Bitesize Summary

Six years after updating Nara members on residential tenancies in Wales, TLT partner Philip Collis summarised critical changes to this ‘painfully complex’ new regime live from December 1, 2022.

Philip warned there were 38 different forms associated with the regime so meticulous care would be needed – as the regime also had teeth where there were failures to comply. 

Legislation: Renting Homes (Wales) Act 2016
 
Occupation Contracts 

• These will replace ASTs 
• They will be either Standard contracts (applicable in a private rented context) or Secure contracts
• “Contract holders” not “tenants”
• Fundamental terms (must include) and supplementary terms
   

Standard Contracts

• Rent is payable
• Between a landlord and an individual(s)
• A right to occupy a dwelling
• Fixed term or periodic

Converted standard contracts

• Applies to existing ASTs which convert
• Must meet standard contract requirements
• Notice of conversion needed by 1 Feb 2023
• Written statement of terms must be within 6 months i.e. 1 June 2023

 
Written statements  – central to the new regime

• Names and parties
• Key matters
• Fundamental terms 
• Supplementary terms
• Additional terms
• Not negotiated but contract holder can apply to court for declaration

 
Required response times:

• Within 14 days of the occupation date
• Within 14 days of a variation
• Within 14 days of change of contract holder
• Within 14 days of request
• Within 14 days of change of landlord or landlord’s address
• Cannot exercise certain rights to terminate if no written statement provided
• Failure means 14 days to 2 months’ compensation 

 
Terms to include in written statement
Fundamental and supplementary terms are set out in the Act. Note the Welsh Government can issue new regulations at any time to create new or delete fundamental provisions.
 

• Fundamental terms (in general these cannot be varied)
  • No anti-social behaviour 
  • Obligation on landlord to repair – to be fit for human habitation
  • Obligation on Landlord to provide written statement and prescribed information
  • Deposits to be protected
  • Addition of contract holders with consent
  • Withdrawal of contract holders
  • Termination provisions
     
• Supplementary terms (optional but included by default unless removed)
  • Rent free if property unfit for human habitation
  • Inventories to be agreed within timescales
  • Deposits and security to comply 
  • Use of dwelling – easier for tenants to move in or leave
  • Alterations – follow consent procedure carefully or remove

 
Termination

• No forfeiture or notice to quit
• No court order is needed in these circumstances:
  • Contract holder terminates before written statement has been provided
  • Agreement of all parties
  • Repudiatory breach by landlord
  • Death of sole contract holder (unless right of succession)
  • Termination if abandoned premises
• Court order required for:
  • Possession notice to be given 
  • Time limits on commencing claim*

*Landlord can take possession after one month of notice except if “seriously in arrears” in which case, can take possession within 14 days. Serious arrears:

• 8 weeks rent unpaid where rental period week, fortnight or four - if rent payable weekly 
• Two months rent where monthly rent payment
• A quarters rent where 3 months or quarterly rent payments made
• Otherwise 25% rent due 
• Possession order is discretionary and only to be granted if reasonable
• Six months’ notice for no fault termination in most situations