Lettings Legislation

The Renting Homes (Wales) Act 2016, has seen many changes including how to “End a Contract”, Martine highlights what you need to know:

ENDING A CONTRACT

From 1 December 2022, landlords and letting agents will need to provide six months’ notice to a Contract-Holder in order to repossess the property.

For a no-fault eviction – formerly known as a section 21 Notice - the notice period is six months. Landlords are not able to serve notice on a Contract-Holder during the first six months of their occupancy, unless they are in breach of the contract.

Termination of periodic standard contracts by a landlord notice:

Standard Contracts can be periodic or fixed-term and apply to most dwellings within the private rented sector.

Periodic Standard Contracts may be terminated by the landlord,who must provide a possession notice with a specified date that the Contract- Holder has to vacate the property. This notice must give the Contract- Holder at least six months’ notice before the landlord can repossess the property. No notice can be given until six months after the occupation date of the contract.

If the landlord has given a notice to terminate the contract, they may, on that ground, make a possession claim and the court must make an order for possession. That is unless the court considers the eviction to be retaliatory and the order is still subject to any defence from the Contract-Holder.

The contract ends on the date specified in the possession notice, regardless of when the Contract-Holder gives up possession before or on the date specified. If the Contract-Holder gives up possession after the date, the contract ends on the day the Contract-Holder gives up possession of the dwelling or the date determined by the court.

Termination through serious rent arrears

A landlord can make a possession claim in the following circumstances:

• where the rental period is a week, a fortnight or four weeks,if at least eight weeks’ rent is unpaid,
• where the rental period is a month, if at least two months’ rent is unpaid,
• where the rental period is a quarter, if at least one quarter’s rent is more than three months in arrears,
• where the rental period is a year, if at least 25% of the rent is more than three months in arrears.

The court must make a possession claim (subject to the defence of the Contract-Holder) if the Contract-Holder was in arrears on the day the landlord gave the possession notice and if the Contract-Holder is in arrears on the day on which the court hears the possession claim.

The landlord must provide a possession notice specifying the grounds for possession.

Termination if the periodic Standard Contract was a fixed-term Standard Contract

If a fixed-term Standard Contract has come to an end but the Contract- Holder remains in the property, the contract changes as if having been made into a new periodic Standard Contract.

If a notice is given in connection with the end of term, the date in which the Contract-Holder must give up possession cannot be before the last day of the term and cannot be less than two months after the day the notice was given.

Do you need advice with regard to letting your property, please call our lettings team on 02920 614411.