The Renting Homes (Wales) Act 2016: How to prepare for transition Bethan Gladwyn, Senior Associate

Introduction Overview of the Act – highlighting areas of major difference Current progress What will you need to prepare What will happen on transition day What will happen afterwards

Renting Homes – the background Call for reform – Housing Law complex, significant number of different pieces of legislation Law Commission report 2006 Housing now a devolved area Renting Homes (Wales) Act 2016 Significant change – retrospective effect

Renting Homes – ringing the changes The Contract Terminology – “tenancy” / “licence” Two types of contract – secure/standard Secure contract is periodic Standard contract can be periodic or fixed term “Single Social Tenancy” Key matters – address, dates, rent (ss26/27) Other terms are: “Fundamental” “Supplementary” “Additional”

Renting Homes – ringing the changes The Contract – other issues Obligation to provide written statement of the contract within 14 days of occupation Written statement must contain everything required by s32 It must not be “incorrect” – e.g. attempt to alter a fundamental term Penalties for non compliance – up to two months’ rent/discretion to the court to award interest and increase compensation by up to 100% If you want to add supplementary or additional terms – need agreement

Renting Homes – ringing the changes The Contract – considerations: When? before transition day or during the 6 month period after? How? Supplementary terms Will you want to modify? How will you secure agreement? Additional terms? Need agreement?

Renting Homes – ringing the changes From a housing management perspective what will look different? Joint tenancies – one tenant leaving Sole tenancies – adding a new tenant to the mix Minors Death and succession Abandonment Tenancy fraud Supported housing Anti-social behaviour

Renting Homes – ringing the changes Succession Priority succession to spouse/partner who was living at the property (no need in latter case to prove 12 months’ co-habitation) Reserve succession to family member and/or carer Must be 18 to succeed May be two successions

Renting Homes – ringing the changes Succession A former joint tenant who became a sole tenant on the death of the other joint tenant is no longer a successor Transitional arrangements – detailed provisions in schedule 12 about whether successions which pre-dated the Act coming into force BUT these don’t apply to assured or assured short hold tenancies where the succession was a contractual one

Renting Homes – ringing the changes Supported Housing “Supported Housing” defined – s143 Must be a connection between the accommodation and the support services Short term supported accommodation – not occupation contracts (schedule 2 para 13) Generally “short term” means less than 6 months, but this can be extended Longer term supported housing – standard contract (schedule 3 para 2) Additional provisions – mobility and temporary exclusion

Renting Homes – ringing the changes Landlord Consent Where landlords consent is required section 85 gives tenants the right to apply to the court if tenant believes:- the landlords refusal of consent is unreasonable, or one or more of the conditions imposed is unreasonable Some examples of where Landlords consent is required:- Sole tenancies – adding a tenant More than one qualified successor

Renting Homes – ringing the changes Responsibility for repair and maintenance S92 looks similar to the s11 covenant to keep the property S91 – obligation to ensure that the dwelling is fit for human habitation throughout the contract Key differences: Draft FFHH regulations adopt the HHSRS BUT also require landlords to fit smoke alarms, carbon monoxide alarms and carry out electrical safety testing every five years (including any remedial work identified) FFHH enforceable directly by the tenant And by permitted occupiers

Renting Homes – ringing the changes Did you know? You will need to give two months’ notice of a rent increase Tenants will be able to apply to “resign” or be added to a tenancy The Act does not require the tenant to use the property as his or her only or principal home (although transitional arrangements do apply this to existing assured or demoted tenancies) The Act does not prohibit assignments or subletting There will be a statutory procedure to follow for abandonment The grounds for possession are gone – in ASB cases, all is now down to whether the tenant is in breach of the contract

Implementation So far, consultations on: Current consultations Supported accommodation Review arrangements Deposits Fitness for Human Habitation Current consultations Safeguarding property in abandoned dwellings

Implementation Still to come Notices Supplementary terms Model contracts Rent Amending the CPR

Timings Consultation on model contracts/supplementary terms – hopefully soon! Notices Implementation – end 2018/early 2019? Subject to Right to Buy changes coming into force

What will you need – contracts? Secure Contract Standard Contract Non-Occupation Contract Introductory Prohibited conduct Supported housing Homelessness Minors Service Occupancy Student Accommodation Temporary or short term accommodation “non-social” accommodation Care institutions Trespassers

What will you need – other? Data cleanse? Policies and procedures Virtually every process which relates to housing management will change Every policy will need to be reviewed Training? Who? How? Top to bottom approach

What will happen on transition day? Schedule 12 All existing secure, assured, short hold, introductory, starter and demoted tenancies will become occupation contracts Any licences which fall within the definition of “occupation contract” will also become an occupation contract You need to be clear who is a “successor” and who is not You will have six months to supply written terms

What will happen on transition day? Detailed provisions about whether the contracts will be standard or secure Most of your assured agreements are likely to become secure, Demoted tenancies will become prohibited conduct standard contracts but Starter tenancies will become secure UNLESS you serve notice under s11 and para 4 of schedule 12 Likewise other circumstances where you use an AST currently You have two months to notify a contract holder if a contract is to be standard and not secure (schedule 3)

What should we be doing now? Bear in mind challenges are being thrown at you at the same time by: Data Protection – GDPR Universal Credit Changes to Right to Buy You may need to be ready to run by end December/early 2019 You will need to spend time this year getting documentation and staff ready You need to be ready to face legal challenges District Judges gearing up Court processes will change

What should we be doing now? Thinking about messaging – staff/clients Data - do you hold the right information? Will you be ready to send out the right notices/information. Gearing up to do things differently – rent increases, notices Scheduling in review of your procedures and policies – in time to embed new procedures too

What should we be doing now? Staff training Budgeting for costs and staff time of: Training Reviewing contracts Reviewing policies Additional maintenance requirements Legal challenges

Thank you for listening QUESTIONS Thank you for listening

CONTACT Bethan Gladwyn Head of Housing Management Bethan.Gladwyn@hughjames.com 029 2066 0558 Change as required