Key Changes under the Renting Homes (Wales) Act 2016

The Act has replaced the previous Section 21 ('no-fault') and Section 8 (grounds-based) notices with new procedures for ending occupation contracts:

• New Terminology: 'Tenancy agreements' are now 'occupation contracts', and 'tenants' are 'Contract Holders'.
• Section 173 Notice: This replaces the Section 21 notice for 'no-fault' evictions under standard contracts.
• Grounds for Possession: Specific grounds for possession remain for breaches of contract, similar to the old Section 8, but with updated terminology and some procedural changes.

'No-Fault' Eviction (Section 173 Notice)

For private landlords with standard contracts, the 'no-fault' route to possession is now governed by a Section 173 notice. This route allows a landlord to seek possession without needing to prove a breach of contract by the Contract Holder.

• Minimum Notice Period: The minimum notice period for a Section 173 notice is now six months.
• When it can be served: This notice generally cannot be served within the first six months of a standard occupation contract. This means that, in most cases, a Contract Holder on a periodic standard contract will have a minimum of 12 months' security (6 months initial occupation + 6 months notice).
• Restrictions on Serving Notice: A Section 173 notice cannot be validly served if the landlord has not complied with certain fundamental obligations, including:
  • Providing a written statement of the occupation contract.
  • Ensuring the property is fit for human habitation (FFHH).
  • Protecting the Contract Holder's deposit with an approved scheme and providing prescribed information.
  • Being registered and, if applicable, licensed with Rent Smart Wales.

Important: Strict adherence to all legal requirements is essential. Any non-compliance can invalidate your notice and prevent you from gaining possession.

Grounds for Possession (Breach of Contract)

If a Contract Holder breaches the terms of their occupation contract, landlords can seek possession based on specific grounds. These are broadly categorised as:

• Mandatory Grounds: If proven, the court *must* grant a possession order. Examples include serious rent arrears (typically two months or more), or certain serious breaches of contract. Notice periods for mandatory grounds can be shorter (e.g., 14 days for serious rent arrears).
• Discretionary Grounds: If proven, the court *may* grant a possession order, but it is at the court's discretion. The court will consider all circumstances. Examples include other breaches of contract, anti-social behaviour, or damage to the property. Notice periods for discretionary grounds vary, but are generally longer than mandatory grounds.

It is crucial to correctly identify the ground(s) and serve the appropriate notice, providing clear evidence of the breach.

Protection Against Retaliatory Eviction

The Act includes strong protections against 'retaliatory eviction'. This means a landlord cannot serve a 'no-fault' (Section 173) notice simply because a Contract Holder has complained about the condition of the property or requested repairs. If a court finds that a Section 173 notice was served in retaliation for a legitimate complaint about property conditions, it can refuse to grant a possession order and prevent the landlord from issuing another 'no-fault' notice for six months.

Abandoned Properties

The Act introduces a new, clearer process for landlords to regain possession of properties that they reasonably believe have been abandoned by the Contract Holder. This process allows landlords to take possession without a court order, but only if strict conditions are met, including:

• Serving a 4-week warning notice.
• Conducting reasonable enquiries to confirm abandonment.

Failure to follow this process correctly could lead to a landlord being accused of illegal eviction.

The Court Process

In most cases, even after serving a valid notice, a landlord will still need to apply to the court for a possession order if the Contract Holder does not leave voluntarily. The court will then review the case, ensuring all legal procedures have been followed correctly before granting an order for possession.