Occupation Contracts in Wales

Wales has recently enacted a new law that will bring important changes to the way landlords and tenants interact with each other.

The biggest shake-up to housing law in Wales in decades: the Renting Homes (Wales) Act icame into force on December 1. This legislation is making life much simpler for tenants, while also bringing in a host of new rules and regulations for landlords.

So what’s changing?

Firstly, assured shorthold tenancies will be replaced with two types of “occupation contracts”: one for community and social housing landlords, and one for private landlords. This means landlords must use the new type of contract for any new tenancies, with templates available on the government’s website.

Tenants will now legally be known as “contract holders”. For existing tenancies, landlords must inform tenants verbally of the change before December 1. After that, they have six months to provide contract holders with a written statement of their new contract.

Section 21 notices are also being replaced with Section 173 notices.

This means landlords will now have to give a minimum of two months’ notice for “no fault” evictions, although this will extend to six months for tenancies starting after December 1 2022. However, if rent arrears are for over two months, a 14-day notice period may apply.

Finally, the new laws mean landlords must make sure a private rented property is “fit for human habitation”, which includes having working smoke and carbon monoxide alarms, as well as a valid Gas Safety Certificate, Electrical Inspection Condition Report, and Energy Performance Certificate.