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

 The private rental sector has many regulations that landlords must comply with, one of which is the Renting Homes (Wales) Act (2016), which came into force on 1st December 2022. 

The key aim of this legislation is to provide tenants with greater security and ensure that tenant and landlord responsibilities are clear. 

Anyone renting out a property in the County of Gwynedd, Isle of Anglesey and across Wales must comply with the act. The legislation has been updated over time; the updated laws in the Renting Homes (Wales) Act (2016) built 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 act covers: 

• All lets must have a specific contract which for private landlords will invariably be a “Standard Contract” 
• Rules around repossession of an abandoned rental property 
• Keeping the property fit for human habitation 
• Fitting smoke and CO2 alarms 
• Rules for adding a new joint tenant or arrange a succession 
• No fault eviction notice period is 6 months 

Find out the main rules of the Welsh Government legislation, Renting Homes (Wales) Act 2016 in our 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?  

The legislation was 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 previous terminology used to describe property rental changed and some new conditions were added. 

Types of landlords 

Landlords in Wales are 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 

The terminology used for tenants and tenancy agreements changed under the last legislation update. Tenants and licensees in Wales are called contract holders and instead of having tenancy agreements, as they were historically known, there are occupation contracts.  

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 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 was increased from 2 months to 6 months. This came into effect for existing contracts in 2023. 

Landlords are not allowed to evict a tenant based on them complaining about the condition of the property. If the court deems a property to be unfit for habitation following a no fault eviction notice, landlords are prevented from serving a no fault eviction 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 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 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 Renting Homes (Wales) Act, joint contract holders can leave the contract without bringing the whole contract to an end. It is possible to add a new joint contract holder to a Welsh rental contract, with no need to end the current contract. 

Succession rights 

What happens if one contract holder dies? The Renting Homes (Wales) Act 2016 allows 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 

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. 

How do landlords stay compliant? 

The 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. 

All rental contacts should be written up as occupation contracts. When the new legislation was introduced in 2022, landlords had to provide tenants with a new written statement of their contract, including the changes to the terminology. 

The Welsh Government provided model written statements for landlords following the Renting Homes (Wales) Act’s 2022 implementation. 

Read the 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. 

Find out more

At Williams & Goodwin, we help ensure that landlords stay compliant with the Renting Homes (Wales) Act and all other legislation. If you want to discuss your rental property situation with a member of the team, contact our offices in Bangor, Caernarfon, Holyhead and Llangefni to speak to your local estate agents.