On 1 December 2022, the long-awaited Renting Homes (Wales) Act 2016 will come into force, marking one of the biggest reforms to Welsh housing law in decades.<\/p>\n
With the changes just under a week away, here are a few things to watch out for if you currently hold an assured shorthold tenancy in Wales or are looking to create one shortly.<\/p>\n
What will happen to existing assured shorthold tenancies?<\/strong><\/p>\n At the appointed date, all assured shorthold tenancies entered into before 1 December 2022 will automatically be converted into standard occupation contracts, and tenants will be called \u2018contract holders\u2019.<\/p>\n If your assured shorthold tenancy ends after 1 December 2022, it will be converted to a \u2018fixed term standard contract\u2019. However, if the fixed term has expired and you have a rolling tenancy, it will be converted to a \u2018periodic standard contract\u2019.<\/p>\n Occupation Contracts<\/strong><\/p>\n All occupations contracts will feature four \u2018standard terms\u2019:<\/p>\n Converted Contracts<\/strong><\/p>\n Assured shorthold tenancies that convert to occupation contracts will have their \u2018standard terms\u2019 determined differently:<\/p>\n Written statements\u00a0<\/strong><\/p>\n All new or converted occupation contracts will require landlords to provide contract holders with a written statement outlining their respective rights and responsibilities, either in hard copy or electronically (if the contract holder agrees).<\/p>\n Landlords who enter a new occupation contract after 1 December 2022 must provide contract holders with a written statement within 14 days of signing the contract.<\/p>\n Alternatively, landlords with converted contracts have six months to provide contract holders with a written statement (i.e. until 31 May 2023) <\/strong>and can transfer existing terms into the written statement.<\/p>\n Warnings about written statements<\/strong><\/p>\n If you are a landlord, you will not be able to serve a possession notice without a written statement. You can also be penalised if you fail to provide a written statement on time or if it is incomplete or inaccurate. A contract holder could, for example claim one day’s rent per day of non-compliance for up to two months, plus interest, or offset this against any rent due.<\/p>\n What we can do to help<\/strong><\/p>\n We will be able to assist with the conversion process by ensuring that both converted and new occupation contracts are compliant with the four types of standard terms.<\/p>\n We will also be able to assist with the all-important written statements so that you can avoid penalties for not providing one on time and so that you are able to validly serve a possession notice.<\/p>\n Please do not hesitate to contact the team if you require further information on the above.<\/p>\n\n
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\n(i) They are incompatible with a fundamental provision; or
\n(ii) They are terms as a result of an enactment repealed or revoked under the new Act<\/li>\n