The Renting Homes (Wales) Act 2016, which came into force in December 2022, has transformed the way properties are rented in Wales. Designed to simplify the rental system, this legislation affects landlords and contract-holders (previously tenants) alike by introducing new rules for tenancy agreements, the termination process, and property management.
At Hutchinson Thomas Solicitors, we provide expert guidance to Landlords on how to navigate the complexities of renting properties under this law.
Here’s a look at the key provisions regarding termination and management of tenancies.
A new framework for tenancies
The Renting Homes (Wales) Act replaces various tenancy agreements with two key types of contracts:
- Secure Contracts – Typically used by community landlords (e.g., local authorities and housing associations).
- Standard Contracts – Commonly used by private landlords.
This simplifies tenancy arrangements, making rights and obligations clearer for both landlords and tenants. But how does this affect termination and management?
Termination of tenancies under the Act
Under the Renting Homes (Wales) Act, landlords must follow specific rules when ending a tenancy, which are designed to offer greater protection to tenants.
Some of the key aspects of termination include:
- No-fault evictions: Landlords can still issue no-fault eviction notices (previously known as Section 21 notices), but the new law extends the notice period to six months for Standard Contracts. This means that landlords must provide tenants with at least six months’ notice before asking them to vacate, unless there is a breach of contract.
- Breach of contract: If a tenant breaches the terms of their contract (e.g., rent arrears, anti-social behaviour), a landlord can serve a notice on this basis to obtain possession of the property. The notice periods for a breach of contract depend upon the nature of the breach.
- Notice periods and fixed-term contracts: For fixed-term contracts, landlords cannot terminate the tenancy before the fixed term ends unless there is a breach of contract. Once the fixed-term has ended landlords must give a six-month notice to regain possession of the property.
- Possession proceedings: If a tenant refuses to leave after the notice period, the landlord can apply to the court for a possession order. This process can take time, and landlords must be prepared to provide the court with evidence that all proper procedures were followed.
Managing tenancies: Landlord obligations
The Act also introduces enhanced responsibilities for landlords, ensuring that properties are managed effectively, and tenants’ rights are respected.
Some key management obligations include:
- Written contracts: All tenants must receive a written contract within 14 days of moving in, clearly outlining the terms of the tenancy. Failure to provide this can make it difficult for landlords to terminate a tenancy, and may entitle the tenant to claim compensation from the Landlord.
- Property condition and fitness: Landlords are required to ensure that properties are fit for human habitation. This includes regular maintenance of electrical, gas, and heating systems, as well as addressing issues like damp and mould. Failure to comply with these standards could give tenants the right to withhold rent or take legal action.
- Rent increases: Rent increases are permissible under the Act, but landlords must give tenants two months’ written notice (in the prescribed form) of any rent increase, and such increases can only happen annually. This prevents sudden and unexpected changes to the rental cost.
- Safety and repairs: Under the Act, landlords must carry out essential repairs within a reasonable timeframe and ensure that safety requirements, such as gas and electrical safety checks, are regularly completed. Non-compliance can lead to enforcement action or fines.
How we can help
Understanding the implications of the Renting Homes (Wales) Act is essential for landlords. At Hutchinson Thomas Solicitors, we specialise in providing legal advice on tenancy management and termination.
For reliable and comprehensive legal support on tenancy matters, contact Hutchinson Thomas Solicitors today on 01792 439 000 or fill in our form here.