Wales is about to see the biggest change to its housing laws in decades. Introducing the Renting Homes Act, improving how landlords manage their properties and how their tenants rent across Wales.
On the 15th of July 2022, Wales will be changing how rental properties operate for both landlords and tenants. Both social and private tenants will see the following changes:
- How landlords provide contracts
- How their homes are maintained
- How they communicate with their landlords
These changes will mean that both social and private landlords will need to update their properties and paperwork to comply with the new law.
What does this mean for landlords?
This act is going to improve the rental sector for Welsh landlords. For one, it is going to simplify the process of renting. There will only be two types of contracts with this act: 'Secure' for the social rented sector and 'Standard' for the private rented sector.
This change will also mean that you can repossess an abandoned property without a court order following a four-week warning notice.
The act brings a new emphasis on ensuring that homes are fit for human habitation (FFHH). Testing the electrical safety of the property and ensuring that smoke alarms and carbon monoxide are fitted, and working, is going to be necessary to meet the standards. Failure to do so may result in loss of rental income for the duration the property does not meet standards.
For more information, visit gov.Wales here.
What is going to change for your tenants?
The law will help make renting more straightforward and secure for landlords and tenants alike. Under this new law, tenants will become 'contract-holders', and 'occupation contracts' will replace tenancy agreements.
Changes coming for contract-holders include:
- Written contracts setting out tenant rights and responsibilities
- The 'no-fault' eviction notice period will increase from two to six months
- More protection from evictions
- Better succession rights: This allows contract-holders to set out who has a right to continue living in a dwelling if they die
- Improved flexibility for joint contract-holders.
Wales will enforce this act in July. While the rest of the UK awaits the long-promised Renters Reform Bill, the improvements to renting for Landlords and tenants that Wales is making is a promising sign. This should encourage landlords and show that now is the time to invest in a sector making necessary improvements for investors. If you're looking to purchase a buy to let property in Wales, or if you want to learn more about what these changes could mean for you, our consultants are here to help. Get in touch with me directly on 01732 471673 or email me at firstname.lastname@example.org