The Welsh government has published draft legislation that changes the terms of converted contracts and any renewals that replace them.
They close off a number of regulatory grey areas that could potentially cause issues for landlords in Wales during court proceedings.
The new legislation means that the original converted contract terms should be provided by 31 May 2023 and any renewed terms agreed already should be provided by 14 June 2023.
If there has been a change in the identity of the contract-holder between 1 December 2022 and 31 May 2023, the landlord must provide a copy of the written statement to them by June 14 2023.
After 1 June, if a new contract replaces a converted contract, landlords and agents will have 14 days from the start of the contract to provide a written statement. This allows landlords to safely renew their contracts after this date without facing penalties and makes it easier administratively as these contracts are largely indistinguishable from standard contracts.
This news follows the introduction of the Renting Homes Wales Act on 1 December 2022, which requires that all existing assured shorthold tenancies and licences in Wales should be converted into occupation contracts.
The Welsh government’s announcement means that landlords will now be able to work towards a firm deadline as regards ensuring their contracts are compliant with the Renting Homes Wales Act’s key requirements in this area.
Ben Beadle, chief executive at the National Residential Landlords Association, said: “This announcement provides some much needed clarity for landlords on when they need to meet the obligations set out in the Renting Homes Wales Act.
“Above all, it means that landlords now have a level of certainty with respect to the timeline they can now work towards over the coming months.
“However, all of this confusion and subsequent tweaking to regulations was totally avoidable. The Welsh Government should have listened to the concerns of industry stakeholders properly and in our view, much more needs to be done by the Welsh Government to restore the confidence of landlords, which has been badly damaged by the botched roll-out of these reforms.”
To find out more about the relevant amendments to Section 12 click here.
As clear as mud! This is the another reason why Landlords are out!
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Renting Homes Wales Act 2016 took six years to implement and 4 months later still is wrong!
I am aware that for private landlords a conversion contract is a nightmare and legal minefield with penalties and NRLA were advising their members not to issue them because of the legal discrepancies up to a week ago and should issue a new ‘Occupation Contract’ (tenancy). As the deadline is not only one month away …… what a farce and has to be a nightmare for lettings agents with hundreds of properties. I doubt it can be done in time. The Welsh Government should have extended the deadline, as it is their mistakes/doing! They did it for their social housing associations in 2021.
This is one of the worst pieces of legislation imposed on a private industry by authoritarian meddlers and can’t even get it right. No wonder so many landlords are selling up. There was nothing wrong with the 1988 Housing Act. Having read one of the new contracts which is 34 pages long, all they have done it tweak what was already in place but add more consumer information which arguably is not necessary in a contract unless you are a lawyer and can be standalone legislation where necessary.
Meanwhile what effort has the Welsh Government done to provide housing, while their actions has reduced PRS stock and untold misery for tenants?
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This is beyond the average landlord to understand or be bothered and is leaving ….. only part of Schedule 12
Regulation 5 inserts a new paragraph 11A into Schedule 12. New paragraph 11A(1) modifies section 31(1) and (2), section 36(3)(a), section 37(3)(a) and section 39(1) of the 2016 Act in relation to their application to substitute contracts which come into existence before 1 June 2023. New paragraph 11A(2) modifies section 31(1), section 36(3)(a), section 37(3)(a) and section 39(1) in relation to their application to substitute contracts that come into existence on or after 1 June 2023. Regulation 6 amends paragraph 12A of Schedule 12 so that it does not apply to substitute contracts. Regulation 6 also amends the modified paragraph 2(a) of Schedule 9A (set out at paragraph 12A(b) of Schedule 12) in consequence of amendments made by these Regulations. Regulation 7 amends paragraph 13(1) of Schedule 12 so that it does not apply to substitute contracts and separate provision is made for those contracts under paragraph 11A(1)(d) and (2)(b) of Schedule 12. Regulation 8 amends paragraph 15(3)(b) of Schedule 12 to omit reference to paragraph 32 of that Schedule (as this is now included within the definitions in paragraph 1 of Schedule 12.
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This is a farce by Welsh Government. Today NRLA are informing members that they still haven’t got the legislation correct and STILL NEEDS AMENDING with one month to go …………………… if you don’t comply, landlords are fined. Outrageous and the Welsh Housing Ministers Drakeford and Gething should be sacked.
As of 26th April, the Welsh government has now published a number of amendments to the fundamental terms of these contracts. The legislation is still in draft form but is set to come into force on June 1st, after the deadline for providing a written statement.
This has been going on since before 2016!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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Welsh Landlords need to be aware that if you get it wrong and one cannot help but think this is a motive by the Welsh Government to get rid of Sec 173 (formerly Sec 21) considering how difficult they have made it and still got it wrong themselves at this late stage after being told months ago, you cannot enforce your tenancy in the future, in particular banned from using Sec 173.
They say it is a minor inconvenience for landlords to need to re-issue their Occupation Contracts but for those with a large portfolio and a statement within 14 days is going to be an issue, let alone impossible for lettings agents tasked with this job n behalf of multiple landlords on their books.
Now here is a worthy story that PIE should investigate and report upon. The information out there is minimal but far reaching consequences for the industry.
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Even the Welsh Governments own Occupation Contract is wrong, not fit for purpose and has to be amended and so many private landlords may have used it. At the end of the fixed term for new contracts, its does not become a periodic contract. They left it out!!!
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Fleeing landlords tells the story. You know those people who put their money where their mouths are and risk their investment. Not the loudest mouth people with little knowlege who might now be know as “Influencers” to use an internet term or politicians to others. Those who introduce legislation and rules without any consideration for the impact it will have on investment. Scotland and Wales seem to be leading the way killing off the PRS at a rate and they are being closely chased by Rishi and his Mob. Will tenants thank you in the long term when they can’t afford to rent and competition for housing becomes extreme? I guess the less intelligent will but the more intelligent will see it for what it was – reduced supply = higher rents + more scarcity. It is simple “O” level or CSE economics.
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