More Renting Homes Changes

There have been some more small changes made to the Renting Homes (Wales) Act. These were made by the Renting Homes (Wales) Act 2016 (Amendment of Schedule 12 and Consequential Amendment) Regulations 2023. These, lengthily named, regulations amend Schedule 12 of the Renting Homes (Wales) Act 2016 which have to do with the transition of existing tenancies into Renting Homes Occupation Contracts. Note that this is applicable in Wales only. 

The key point is that if an existing tenancy was converted to an Occupation Contract then there was a six month period to provide a proper written statement to the occupier of their rights and liabilities under the new legislation as well as an RHW2 form to give the landlord’s contact details. That period ended on 1 June 2023. I have a suspicion that there is wholesale non-compliance with this either from landlords who remain blissfully ignorant of the changes or who have not complied correctly with the, pretty complex, written statement obligations.

There was however substantial confusion in the legislation about what to do about a converted contract where the landlord or the contract holder changed identity shortly before 1 June, these new regulations intend to fix that gap. They work by creating a distinction between a converted and a substitute contract. A converted contract is one that is converted from an existing tenancy, such as an AST. A substitute contract is one that arises from a converted contract, such as a periodic contract arising out of a fixed-term converted contract.

In short:

• if the contract holder changed before on a converted contract 1 June then there is 14 days from the date of change to serve the proper written statements or 1 June, whichever is later. Note that this is change of contract-holder under an existing converted contract which is continuing, not a new contract;
• If the contract had turned into a substitute contract and then the contract holder changes then there is a period until 14 June to serve the correct information. Again note that this is applicable where the contract is continuing but the parties have changed only;
• if the landlord changes before 1 June then there is a period until 14 June to serve the proper written statements;
• if the contract changes from a converted contract to a substitute contract (ie. fixed term to periodic) then there is until 14 June to serve the correct written statement.

It is worth noting that the Welsh model agreements do not work correctly for contracts that have converted to periodic. It also worth noting that a fixed term written statement must be written in a specific way to also be useable in a periodic contract that arises from it otherwise it all needs to be served again. 

These changes are a bit frustrating. But at the same time at least the Welsh Government is seeking to solve the problems created by the changes.

For lots more on the Renting Homes (Wales) Act then you are probably best to read my book on it currently the only one out there! Obviously, it is now slightly out of date!