Legalize / United Kingdom / Wales / Act of Senedd Cymru

Renting Homes (Wales) Act 2016

Type Act of Senedd Cymru

Publication 2016-01-18

State In force

Jurisdiction Wales

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

PART 1 — OVERVIEW OF ACT

Introduction to Parts 1 and 2 and key concepts in this Act

Landlord, lodger and permitted occupier

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(1) This Act (in Part 2) provides that—

(a) most individuals who rent their homes under a tenancy or licence, and their landlords, make a contract with each other known as an occupation contract (and in this Act such individuals are referred to as “contract-holders”; see section 7);

(b) there are two kinds of occupation contract, namely—

(i) secure contracts, and

(ii) standard contracts;

(i) fixed term standard contracts, and

(ii) periodic standard contracts,

and the two kinds of standard contract differ in relation to their variation, transfer and termination.

(2) Each kind of occupation contract (and each kind of standard contract) gives different rights to, and imposes different obligations on, the contract-holder and landlord; a secure contract gives greater security of occupation to the contract-holder than a standard contract.

Kinds of landlord

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(1) This Act (in Part 2) provides—

(a) for two kinds of landlord—

(i) community landlords (which are local authorities, registered social landlords and other kinds of authority), and

(ii) private landlords (which are any landlords who are not community landlords);

(b) that both kinds of landlord may make, or adopt, specific kinds of occupation contract (though this is subject to various exceptions).

(2) In general—

(a) occupation contracts made with or adopted by community landlords are secure contracts, and

(b) contracts made with or adopted by private landlords are standard contracts,

but this is subject to various exceptions.

Fundamental provisions and supplementary provisions of occupation contracts

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(1) Part 2 of this Act establishes the concept of a “fundamental provision”; that is, a provision of this Act (generally a section) which is automatically included as a term of all occupation contracts, or of specified occupation contracts (and so forms part of the contract between a contract-holder and a landlord).

(2) Once a fundamental provision of this Act is included in an occupation contract, it is referred to as a “fundamental term” of the contract (see section 19).

(3) At the creation of the contract, the parties can agree that a fundamental provision will be included in the contract with changes (referred to in this Act as “modifications”) or that it will not be included at all; however, the parties can only do either of these things if it will improve the contract-holder's position, and there are some fundamental provisions which must be included without changes.

(4) Once an occupation contract has been created the parties can vary its fundamental terms; but there are certain limits to this.

(5) Part 2 of this Act also establishes the concept of a “supplementary provision”; that is, a provision set out in regulations made by the Welsh Ministers which is automatically included as a term of all occupation contracts, or of specified occupation contracts.

(6) Once a supplementary provision is included in an occupation contract, it is referred to as a “supplementary term” of the contract (see section 23).

(7) At the creation of the contract, the parties can agree that a supplementary provision will be included in the contract with modifications or that it will not be included at all, and once an occupation contract has been created, the parties can vary its supplementary terms; but there are certain limits to this.

Identifying provisions of this Act which are fundamental provisions

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(1) Each provision of this Act which is a fundamental provision—

(a) specifies that it is a fundamental provision, and

(b) specifies the occupation contracts it is applicable to.

(2) Schedule 1 contains three Parts, identifying the fundamental provisions in this Act as follows—

(a) Part 1 identifies the fundamental provisions that are applicable to secure contracts,

(b) Part 2 identifies the fundamental provisions that are applicable to periodic standard contracts, and

Overview of rest of Act

Overview of Parts 3 to 9: operation and termination of occupation contracts

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(1) Parts 3 to 9 concern occupation contracts.

(2) Part 3 applies to all occupation contracts; it deals with a range of matters about the rights and obligations of parties to occupation contracts.

(3) Parts 4 to 8 apply only to specific kinds of occupation contract—

(a) Part 4 concerns landlords' obligations relating to the condition of dwellings; Chapter 2 (which sets out the obligations) applies to all occupation contracts except fixed term standard contracts for a term of seven years or more, and Chapters 1 and 3 are of general application,

(b) Part 5 applies to secure contracts only (and section 118 applies only to secure contracts with a community landlord),

(d) Part 7 applies to fixed term standard contracts only, and

(e) Part 8 applies to supported standard contracts only (a supported standard contract is an occupation contract which relates to accommodation provided in connection with support services).

(4) Part 9 concerns the termination of occupation contracts; in particular, it contains—

(a) Chapters which apply to all occupation contracts, and

(b) Chapters which apply only to specific kinds of occupation contract.

Overview of Parts 10 and 11: general provision

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(1) Part 10 concerns miscellaneous matters which are either—

(a) supplementary to Parts 2 to 9, or

(b) about the application and operation of this Act.

(2) Part 11 contains—

(a) provision about the interpretation of this Act, and

(b) provision which applies generally for the purposes of this Act.

PART 2 — OCCUPATION CONTRACTS AND LANDLORDS

CHAPTER 1 — OCCUPATION CONTRACTS

Tenancies and licences that are occupation contracts

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(1) A tenancy or licence is an occupation contract if—

(a) it is within subsection (2) or (3), and

(b) rent or other consideration is payable under it.

(2) A tenancy or licence is within this subsection if—

(a) it is made between a landlord and an individual, and

(b) it confers on the individual the right to occupy a dwelling as a home.

(3) A tenancy or licence is within this subsection if—

(a) it is made between a landlord and two or more persons at least one of whom is an individual, and

(b) it confers on the individual (or, if there is more than one individual, on one or more of them) the right to occupy a dwelling as a home.

(4) But there are exceptions to subsection (1) set out in Schedule 2, which provides—

(a) in Part 1, that certain tenancies and licences not within subsection (2) or (3) can be occupation contracts if notice is given,

(b) in Part 2, that certain tenancies and licences that are within subsection (2) or (3) are not occupation contracts unless notice is given,

(d) in Parts 4 and 5, that certain tenancies and licences can be occupation contracts, but special rules apply in relation to them, and

(e) in Part 6, that the Welsh Ministers may amend that Schedule.

(5) Each person with whom a landlord makes an occupation contract is a contract-holder under the occupation contract.

(6) But an individual cannot be a contract-holder under an occupation contract if he or she has not reached the age of 18.

Secure contracts and standard contracts

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(1) An occupation contract is either—

(a) a secure contract, or

(b) a standard contract.

(2) A secure contract is a periodic contract.

(3) A standard contract is either a fixed term contract or a periodic contract.

CHAPTER 2 — NATURE OF CONTRACTS WHICH CAN BE MADE ETC. BY COMMUNITY LANDLORDS AND PRIVATE LANDLORDS

Definitions

Community landlords

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(1) In this Act “community landlord”means a landlord which is—

(a) an authority mentioned in subsection (2),

(b) a registered social landlord, other than a fully mutual housing association or a co-operative housing association, or

(c) a private registered provider of social housing (see section 80(3) of the Housing and Regeneration Act 2008 (c. 17)).

(2) The authorities are—

(a) a local authority;

(b) a new town corporation;

(d) an urban development corporation;

(e) a housing co-operative to which subsection (3) applies.

(3) This subsection applies to a housing co-operative (within the meaning of section 27B of the Housing Act 1985 (c. 68)) to the extent that any dwelling subject to an occupation contract is comprised in a housing co-operative agreement within the meaning of that section.

(4) In this Act “registered social landlord” means a person registered in the register maintained under section 1 of the Housing Act 1996 (c. 52).

(5) In this Act “fully mutual housing association” and “co-operative housing association” have the same meaning as in the Housing Associations Act 1985 (c. 69) (see section 1(2) of that Act).

(6) The Welsh Ministers may by regulations amend this section for the purpose of—

(a) providing that a person which is for the time being a community landlord is not a community landlord;

(b) providing that a person which is not a community landlord is a community landlord;

Private landlords

10

In this Act “private landlord” means a landlord that is not a community landlord.

Contracts made with or adopted by community landlords

Contract made with community landlord

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(1) An occupation contract made with a community landlord is a secure contract unless one of the following exceptions applies.

(2) The first exception applies if—

(a) the occupation contract is within Schedule 3 (occupation contracts made with community landlords which may be standard contracts),

(b) before or at the time the contract is made, the landlord gives the contract-holder a notice under section 13 (notice of standard contract), and

(3) The second exception applies if the contract is made as a result of an order under section 116 (prohibited conduct standard contract).

(4) The third exception applies if the contract arises under section 184(2) or is within section 184(6) (contracts at end of fixed term).

(5) The fourth exception applies if the contract is a tenancy or licence arising under section 238 (implied tenancies and licences).

(6) Section 16 makes further provision about contracts to which the first exception applies because the contract is within paragraph 3 of Schedule 3 (introductory standard contracts).

Contract adopted by community landlord

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(1) If a community landlord becomes the landlord under an existing secure contract, the contract continues as a secure contract.

(2) If a community landlord becomes the landlord under an existing standard contract because of a transfer under section 62 or 66 (transfer of rights and obligations of landlord under a sub-occupation contract), the contract continues as a standard contract.

(3) If a community landlord becomes the landlord under an existing standard contract for any other reason, the existing contract—

(a) ends when the community landlord becomes the landlord, and

(b) is replaced with a secure contract that has an occupation date falling immediately after the existing contract ends,

unless one of the following exceptions applies.

(4) The first exception applies if—

(a) the contract is within Schedule 3 (occupation contracts adopted by community landlords which may be standard contracts),

(b) before or at the time the community landlord becomes the landlord, the community landlord gives the contract-holder a notice under section 13, and

(5) The second exception applies if the contract is made as a result of an order under section 116 (prohibited conduct standard contract).

(6) The third exception applies if the contract arises under section 184(2) or is within section 184(6) (contracts at end of fixed term).

(7) The fourth exception applies if the contract is a tenancy or licence arising under section 238 (implied tenancies and licences).

(8) The fifth exception applies if—

(a) the contract is a fixed term standard contract for which a premium was paid, and

(b) before the community landlord becomes the landlord, the contract-holder decides that the contract should remain a fixed term standard contract (section 15 makes further provision about such decisions).

(9) Section 16 makes further provision about contracts to which the first exception applies because the contract is within paragraph 3 of Schedule 3 (introductory standard contracts).

Notice of standard contract

13

(1) A notice under this section is a notice—

(a) specifying the paragraph of Schedule 3, and the description of occupation contract set out in that paragraph, on which the landlord relies, and

(b) stating that the contract is a standard contract.

(2) The notice must also inform the contract-holder of his or her right to apply for a review under section 14, and of the time by which the application must be made.

Review of notice

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(1) This section applies where a community landlord gives a notice under section 13.

(2) The contract-holder may apply to the county court for a review of the landlord's decision to give the notice.

(3) The application must be made before the end of the period of 14 days starting with the day on which the landlord gives the contract-holder the notice.

(4) The county court may give permission for an application to be made after the end of the period allowed by subsection (3), but only if it is satisfied—

(a) where permission is sought before the end of that period, that there is a good reason for the contract-holder to be unable to make the application in time, or

(b) where permission is sought after that time, that there is a good reason for the contract-holder's failure to make the application in time and for any delay in applying for permission.

(5) The county court may confirm or quash the decision to give the notice.

(6) In considering whether to confirm or quash the decision, the county court must apply the principles applied by the High Court on an application for judicial review.

(7) If the county court quashes the decision, it may make any order the High Court could make when making a quashing order on an application for judicial review.

(8) If the county court quashes the decision and the landlord gives the contract-holder a further notice under section 13 before the end of the post-review period, the notice has effect (other than for the purposes of subsection (3)) as if given—

(a) in a case within section 11, at the time the contract was made, or

(b) in a case within section 12, at the time the community landlord became the landlord.

(9) The post-review period is the period of 14 days beginning with the day on which the county court quashes the decision.

Notice of right to decide to remain on a fixed term standard contract

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(1) At least one month before a community landlord becomes the landlord under a fixed term standard contract for which a premium was paid, the community landlord must give the contract-holder a notice under this section.

(2) The notice must—

(a) inform the contract-holder of his or her right under section 12(8)(b) to decide that the contract should remain a fixed term standard contract, and of the time by which the decision must be made, and

(b) explain how section 12 will apply to the contract if the contract-holder does not make such a decision.

Introductory standard contracts

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(1) An occupation contract which is a standard contract because the first exception in section 11 or 12 applies and because it is within paragraph 3 of Schedule 3 (new occupation contract made with community landlord)—

(a) is a periodic standard contract during the introductory period, and

(b) if it subsists immediately before the end of that period—

(i) ends at the end of that period, and

(ii) is replaced with a secure contract that has an occupation date falling immediately after that period ends.

(2) But subsection (1)(b) does not apply if an introductory period ends because of paragraph 1(6) of Schedule 4 (private landlord becomes landlord under the contract).

(3) Schedule 4 makes provision about introductory periods and about the terms of a secure contract which arises at the end of an introductory period.

(4) In this Act “introductory standard contract” means a contract—

(a) which is within subsection (1), and

(b) in relation to which the introductory period has not ended.

Contracts made with or adopted by private landlords

Contract made with or adopted by private landlord

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