Key Terminology Changes

One of the most immediate changes introduced by the Act is the terminology used:

• 'Tenancy agreements' are now 'Occupation Contracts'.
• 'Tenants' and 'Licensees' are now 'Contract Holders'.
• 'Landlords' are categorised as 'Community Landlords' (e.g., local authorities, housing associations) or 'Private Landlords'.

These new terms apply to almost everyone who rents a home in Wales.

Types of Occupation Contracts

The Act simplifies the multitude of previous tenancy types into two main forms of occupation contracts:

• Secure Contract: This is the default contract for the social rented sector (community landlords). It offers strong security of tenure, similar to lifetime tenancies, and can only be ended on specific grounds.
• Standard Contract: This is the default contract for the private rented sector (private landlords). It can be either fixed-term or periodic. While offering more flexibility than a secure contract, it still provides greater security for Contract Holders than previous assured shorthold tenancies.

Written Statement of the Contract

Landlords are now legally required to provide a written statement of the occupation contract to their Contract Holders. This must include:

• Key Matters: Such as the names of the parties and the address of the dwelling.
• Fundamental Terms: These are the essential legal terms that must be included in every contract, covering important aspects like possession procedures and the landlord's repairing obligations. These cannot generally be altered.
• Supplementary Terms: These deal with the practical day-to-day matters of the contract (e.g., how to report repairs, procedures for contract holders being away for extended periods). These can be omitted or varied if both parties agree.
• Additional Terms: Any other specifically agreed terms, such as conditions regarding pets or garden maintenance. These must be fair under the Consumer Rights Act 2015.

For new contracts, the written statement must be provided within 14 days of the occupation date. For contracts converted from previous agreements, landlords had a transition period to issue these new statements.

Fitness for Human Habitation (FFHH)

A key obligation introduced by the Act is the requirement for landlords to ensure the dwelling is fit for human habitation (FFHH) at the start of and throughout the occupation contract. This includes:

• Structural stability and freedom from serious disrepair.
• Freedom from damp.
• Adequate natural light and ventilation.
• Safe and proper supply of water, gas, electricity, and sanitation facilities.
• Functional smoke alarms (hard-wired and interlinked on each storey).
• Carbon monoxide alarms (in any room with a fuel-burning appliance).
• A valid Electrical Installation Condition Report (EICR) every five years.

If a property is not FFHH, the Contract Holder may not be liable to pay rent for the period of unfitness, and landlords could face legal action.

Changes to Notice Periods and Possession

The Act introduced significant changes to how landlords can seek possession of a property:

• Increased 'No-Fault' Notice Period: For standard periodic contracts, the minimum 'no-fault' notice period (Section 173 notice, replacing the old Section 21) increased from two months to six months. Landlords generally cannot issue this notice within the first six months of the contract.
• Restrictions on Issuing Notices: A landlord cannot serve a 'no-fault' notice if they have not complied with certain obligations, such as providing a written statement, ensuring the property is FFHH, or protecting the deposit correctly.
• Grounds-Based Possession: Landlords can still seek possession on specific grounds if a Contract Holder breaches the contract (e.g., rent arrears, anti-social behaviour), with varying notice periods depending on the severity of the breach.
• Abandoned Properties: A clearer process allows landlords to regain possession of genuinely abandoned properties without a court order, subject to specific notice requirements.

Other Key Provisions

• Joint Contract Holders: The Act allows for greater flexibility, meaning if one joint Contract Holder leaves, the contract does not automatically end for the others, and new joint Contract Holders can be added with landlord consent (which cannot be unreasonably withheld).
• Succession Rights: Enhanced succession rights ensure that more family members and carers can take over an occupation contract if the original Contract Holder dies.
• Prohibition of Retaliatory Eviction: Stronger protections prevent landlords from issuing 'no-fault' notices in response to Contract Holders complaining about property conditions or requesting repairs.
• Varying a Contract: Clearer rules on how and when the terms of an occupation contract can be varied by either party.