Long-awaited rental reforms set to change the shape of the private rental sector in Wales have been introduced.
A raft of new laws - including an extension to ‘no-fault’ eviction notice periods - came into force on 1 December.
Described as the biggest Welsh housing shake-up in decades, the new Renting Homes Act was due to be rolled out in the summer but was pushed back as landlords scrambled to get ready for the changes.
Now, however, the legislation has been implemented - bringing with it wholesale changes to how people rent, manage and live in Welsh rented homes.
Here, Which? breaks down how both tenants and landlords will be impacted by the revised laws.
What is the Renting Homes (Wales) Act?
Years in the making and contentious among landlords, the new legislation is intended to offer greater protection for tenants.
The main changes are centred on the condition of properties, tenancy contracts, and how landlords and tenants communicate.
The Act was passed in 2016, but its introduction has been delayed multiple times.
The new laws at last came into play on 1 December for new tenancies, while 1 June 2023 will mark the start for existing tenancies.
What are the key changes for tenants?
It's hoped the new legislation will make renting easier and provide greater security for tenants - some key changes include:
No-fault eviction extensions
The most significant change is to do with no-fault evictions, with contract-ending notice periods being significantly extended from two to six months.
Tenants will also be protected at the start of their contract as landlords will no longer be able to issue a no-fault eviction notice within the first six months. It means all tenants will have at least 12 months of security at the start of their stay.
Therefore, as long as a contract is not breached, tenants will always have at least six months’ notice before being evicted.
Tenants known as 'contract-holders'
Under the reforms, tenants and licensees are now known as 'contract-holders'. Tenancy agreements have been replaced with 'occupation contracts'.
Tenants will also receive a written contract setting out their rights and responsibilities, and the landlord’s obligations. Special requirements - keeping pets, for example - will be detailed in the contract.
Joint contracts
Increased flexibility with contracts is another key component of the law reforms.
A joint contract-holder holder - a partner for example - can be added or removed from the agreed contract at any time. The contract will not have to end and a new one will not need to be drawn up, therefore allowing the existing contract-holder to be replaced.
This is also hoped to help people resolve domestic abuse issues more quickly, by enabling the abuser to be targeted for eviction and allowing the other joint-contract member to remain at the property.
No more ‘retaliatory evictions’
The Act aims to prevent ‘retaliatory evictions’, meaning tenants cannot be evicted just because they have asked for property repairs or complained about conditions.
It is hoped tenants will have more confidence to raise issues without the fear of facing eviction.
- Find out more: what are my rights as a tenant?
What are the key changes for landlords?
While the reforms are planned to give greater protection to tenants, the Welsh government says it will also make the system simpler for landlords.
Written contracts
All landlords are required to provide a written copy of the occupation contract to their tenant.
The document sets out the rights and responsibilities of both the tenant and landlord.
There are two types of contract - ‘secure’ for the social rented sector, and ‘standard’ for the private rented sector.
Ensuring the property is ‘fit for human habitation’
Under the new rules, landlords must make sure the property is safe to live in, and must comply with more rigorous checks.
Working smoke alarms and carbon monoxide detectors must be fitted, and the structure and exterior of the property are to be kept in proper shape.
Water, gas and electricity supplies are to be in working order, and electrical testing must be conducted regularly.
Rent will not be payable for any period in which the home is not deemed to be fit for human habitation.
Eviction changes
Despite fierce opposition from landlords and letting agents during the consultation process, no-fault eviction notice periods have been extended.
Where a no-fault notice is issued, the minimum notice period that must be given is now six months. A landlord will not be able to give such a notice until six months after the contract starts.
Eviction notices will not be issued unless landlords have complied with certain obligations, including registration and licensing with Rent Smart Wales, and following deposit protection rules.
No break clauses until 18 months
Landlords cannot include a break clause to regain possession in fixed-term contracts of less than two years.
If the contract is more than two years in length, a break clause can be implemented - but no earlier than the 18th month. Just as with no-fault evictions, at least six months’ notice must be given.
Abandonment procedure
Landlords can repossess an abandoned property without needing a court order.
After serving a four-week warning notice and carrying out investigations to make sure the property is abandoned, they can repossess the property.
- Find out more: becoming a landlord
A 'momentous moment' for the rental sector
The Welsh government says its latest changes mean tenants have greater protection than in any other part of the UK.
It says the Act is one piece of 'clear legal framework' replacing complex pieces of old legislation and case law.
Climate Change Minister Julie James said: 'This is a momentous moment as we completely transform the rented sector in Wales.
'A decent, safe and secure home is fundamental to people’s wellbeing. These changes will provide tenants with greater protection from eviction and ensure their home is safe to live in.
'At the same time, landlords will benefit from greater clarity in the law and the ability to repossess abandoned properties more quickly.'
What’s happening elsewhere in the UK?
A long-awaited shake-up in the rental system in England is set to be introduced next year, with the aim of offering greater protection against eviction and rent rises.
A blanket ban on no-fault evictions is due to be implemented, while tenants will benefit from more power to challenge issues and stop landlords from preventing people with pets renting homes.
The government's Renters Reform Bill was first pledged in 2019, but - like in Wales - the implementation of the changes has been slow-moving.
Which? Legal can help with your questions
Which? Legal can help you understand your rights and obligations as a tenant or landlord under the new Welsh housing law, and give you affordable expert advice on what to look out for and consider with the standard occupation contracts.
To join Which? Legal, or to find out more about how they can help you, call 02922 670 203.
source https://www.which.co.uk/news/article/increased-security-for-welsh-renters-as-new-laws-introduced-ayocZ1S4tZCZ