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

2. 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

3. 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

4. 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”

5. 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

6. 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?

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

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

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

17. 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

18. 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

19. 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

20. 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)

21. 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

22. 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

23. 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

24. Thank you for listening
QUESTIONS
Thank you for listening

25. CONTACT Bethan Gladwyn Head of Housing Management
Change as required