Renting Homes Wales Act: What Does it Mean for Landlords?

The new Renting Homes (Wales) Act (2016) came into force on 1st December 2022 and landlords need to know what’s changed. Its aim was to improve the rental process by making responsibilities and rights clearer.

Anyone renting out a property in the County of Gwynedd, Isle of Anglesey and across Wales is affected – even if the tenancy started before the new legislation came into effect. Implemented in 2022, the laws build on the Housing Act (Wales) 2014. The Renting Homes (Fees etc.) (Wales) Act 2019 and Renting Homes (Amendment) (Wales) Act 2021 added further conditions. These are some of the main points the new act covers:

• All new lets need to have a specific contract which for private landlords will invariably be a “Standard Contract”
• Making it easier to repossess an abandoned rental property
• Keeping the property fit for human habitation
• Fitting smoke and CO2 alarms
• Making it easier to add a new joint tenant or arrange a succession
• Extending the no fault eviction notice period from 2 to 6 months

Find out what the new Welsh Government legislation means for landlords in our Renting Homes (Wales) Act 2016 summary.

What is the Renting Homes (Wales) Act (2016)?

The Renting Homes (Wales) Act 2016 was introduced by the National Parliament for Wales to streamline the rental property process. What’s in the Renting Homes (Wales) Act 2016 in summary? It’s designed to improve standards for rental properties by giving landlords clarity on their responsibilities and protecting tenants’ rights.

What are the main provisions of the Renting Homes (Wales) Act?

Under the Renting Homes (Wales) Act, the terminology used to describe property rental has changed and some new conditions have been added.

Types of landlords

Landlords in Wales are now categorised as either a community landlord or a private landlord. Community landlords are typically local authorities or registered social landlords. Private landlords are landlords who do not fall into the community category.

Types of tenancies

One notable change introduced in the Renting Homes (Wales) Act is that tenants and licensees are now called contract holders and occupation contracts replace tenancy agreements. There are two types of occupation contracts.

Secure Contract: These apply to contracts under community landlords

Standard Contract: These apply to contracts under private landlords, though they can also be used by community landlords in specific cases.

Occupation contracts are then split into four categories of terms:

• Key Matters: The names of the parties involved in the contract and the address of the rental property in question. These are not optional and must be included in every occupation contract.
• Fundamental Terms: The fundamental terms outline key details like the landlord’s responsibilities for property maintenance and what happens when the contract ends.
• Supplementary Terms: In the Renting Homes Act Wales the supplementary terms cover situations that can occur during the contract period. For example, a tenant’s planned extended absence.
• Additional Terms: If any other issues need to be set in writing, these are covered in the additional terms. This could apply to keeping pets at the property, for example. But they must be deemed fair in accordance with the Consumer Rights Act 2015.

Notice periods and evictions

For new standard contracts since 1st December 2022, the no fault notice period for a standard eviction has been increased from 2 months to 6 months. The new 6 month notice period will come into effect for existing contracts later in 2023.

Landlords who issue a no fault possession notice following a maintenance request can find the court refusing the eviction, and preventing another no fault notice for the next 6 months. Tenants are held to a high standard as well. The Renting Homes Act (Wales) sets in writing that contract holders must not carry out any anti-social behaviour at the property.

Fit for Human Habitation (FFHH)

Is your rental property fit for human habitation (FFHH)? The Renting Homes (Wales) Act 2016 is very clear on what’s expected of landlords to provide a safe and comfortable home for contract holders.

Under the new rental regulations in Wales, landlords are responsible for electrical safety testing and ensuring working smoke alarms and carbon monoxide detectors are fitted. Rental properties should have:

• Functional hard-wired smoke and fire alarms
• Battery powered carbon monoxide alarms in all rooms with solid fuel burning appliances
• A valid Electronic Installation Condition Report (EICR) covering fixed wiring
• Working gas, electrical and water supplies

Under the new legislation, contract holders do not have to pay rent for time periods where the property is not fit for human habitation.

Joint contract holders

Under the updated Renting Homes (Wales) Act joint contract holders can leave the contract without bringing the whole contract to an end. It is now possible to add a new joint contract holder to a Welsh rental contract. There’s no need to end the current contract.

Succession rights

What happens if one contract holder dies? The new Renting Homes (Wales) Act 2016 makes it easier for a family member to take on the contract. Allowing for certain conditions, if one spouse dies, their widow, widower or civil partner can have the contract transferred to them.

The successor can be another family member, or someone who lived with the contract holder before their death. Under certain circumstances, this can cover a carer who was living at the property alongside the deceased contract holder.

Abandoned properties

The legislation that came into effect on December 2022 law makes it easier for landlords to repossess an abandoned property. Previously you would need a court order. Now landlords can take back possession of an abandoned Welsh rental property with two steps: by serving a 4 week warning notice, and investigating to verify that that the property is indeed abandoned.

What do landlords need to do?

The new property rental regulations take safety, warmth and sanitation very seriously. Be sure to fit the required CO2, smoke and fire alarms to meet safety standards. Make sure you meet your obligations to the letter of the law.

Read the new legislation for yourself, and contact your professional, local letting agent, Williams & Goodwin if you are unsure of anything. You can find full details of the act on the Welsh Government website.

You’ll also need up to date documentation for your rental contacts. Landlords have 14 days to issue a written statement to contract holders for new contracts that began after 1st December 2022. If the contract was already up and running by then, landlords have 6 months to present the written statement to existing contract holders (existing tenants).

What should landlords include in the written statement? You can use a template to make sure you get it right. The Welsh Government has provided model written statements for landlords following the Renting Homes (Wales) Act’s 2022 implementation.

What do tenants need to do?

Tenants renting a home in Wales do not need to do anything about the Renting Homes (Wales) Act implementation. The landlord should take action, and provide tenants with a written statement within the correct time frame.

You can rest assured that Williams & Goodwin know what the new Renting Homes (Wales) Act means for landlords. If you want to discuss your rental property situation with a member of the team, contact our offices in Bangor, Caernarfon, Caergybi and Llangefni to speak to your local estate agents.