Landlords Beware: New Welsh Rental Property Laws Take Effect Today, Bringing Major Changes for Tenancies

New Welsh Rental Property Law Sparks Major Legislative Shift

As of 1 December 2022, new rental property laws have taken effect in Wales. The Renting Homes (Wales) Act 2016 and the Renting Homes (Amendment) (Wales) Act 2021 have ushered in a significant shift in the approach to residential housing law. These changes will apply to the vast majority of tenancies, including those already in existence. However, the government has made it clear that they won't be applied to tenancies that commenced before 15 January 1989. In this blog post, we will explore the key changes that landlords need to know about.

With emergency changes introduced during the Covid-19 pandemic, Wales has expressed a strong desire to enhance tenant protections, security of tenure, and clarify expectations for all rental sector parties. This objective is shared, albeit with differences in implementation, across the UK nations. Nonetheless, Wales' fresh approach has scrapped some of the most fundamental elements of prior residential housing laws. A majority of the changes are geared towards enhancing occupant-friendliness, while boosting security and certainty for residential tenants.

Key Changes for Tenants in Wales

The Welsh government has introduced a change in terminology for rental agreements. Instead of referring to tenants, they will now be called "contract holders", and tenancy agreements will be referred to as "occupational contracts". However, landlords will still be referred to as landlords but will be classified as either "community landlords" (typically operating in the social rental sector) or "private landlords" (anyone who is not considered a community landlord).

It's crucial to note the new written statement requirement, which is the most pressing change. The Acts mandate that although an occupational contract can still be made verbally, a written statement detailing all the agreement's terms must be given to the contract holder within 14 days. This rule will be effective from December 1, 2022. For existing tenancies, a written statement must be provided within six months (by May 31, 2023) to avoid penalties, which may include financial consequences like compensation or withholding of rent, and invalidating any future notices that you intend to serve.

Under the new regulations, it is now your responsibility to ensure that your properties are safe and suitable for human habitation. There is a general obligation to maintain fitness for all occupational contracts. Here are some essential aspects that you need to consider:

• Electrical safety testing must be carried out every 5 years.
• Hardwired smoke detectors must be installed on every storey of your properties.
• Carbon monoxide detectors must be provided, although they do not necessarily need to be hardwired.
• The structure and exterior of your properties must be kept in compliance with the required standard.

If you are a landlord of a pre-existing tenancy, you have a grace period of 12 months to ensure that you meet the above obligations, which means by 30 November 2023.

Joint occupational contracts can now be amended without creating a new agreement under the new Acts. This means that you have the power to remove individuals who engage in anti-social behaviour or non-permitted activities within the property without removing other joint-contract holders. Additionally, your contract holders can give notice to end their tenancy without invalidating the occupational contract for the other joint-contract holders in residence.

The previous process of issuing a section 21 notice has been replaced. Under the new rules, you cannot issue a no-fault notice during the first 6 months of an occupational contract. Additionally, you must provide 6 months' notice instead of the previous 2 months. Furthermore, you can only issue such a notice if the contract is for a term greater than two years. These changes significantly limit your rights compared to the previous process, so it's important to seek advice if you intend to serve such a notice.

Under the new Acts, you are required to provide 2 months' notice for any rent variation, and can only do so 12 months after the last change to the rent.

The Acts have introduced succession rights for contract holders, which prioritise the rights of their spouse, partner or cohabitee as the "priority" successor, and a non-priority family member who previously lived with the contract holder as the "reserve" successor, in case the contract holder dies during their tenancy. Moreover, the Acts have also provided for a new succession right for unpaid carers of contract holders, subject to certain criteria being met.

Under the new Acts, obtaining a court order is no longer necessary to repossess an abandoned property if you can provide evidence of a four-week warning notice and satisfactory investigations confirming that the property has been left abandoned.

Housing Disrepair Claims Swansea

The recent Acts have brought in significant changes to the residential housing law, affecting both landlords and tenants. These changes have been updated frequently, even in the days leading up to their introduction, making it crucial to seek legal advice to ensure compliance with the new regulations.

The changes cover areas such as terminology, written statements, repairs and condition, joint tenancies, termination by section 21 notices, rent variations, succession rights, and abandonment. With such extensive changes, it's important to stay informed and seek expert guidance to navigate the new landscape of residential housing law. As housing disrepair experts, we are here to help guide you through these changes and ensure that you remain compliant with the new regulations.