1. Renting Homes A better way for Wales TPAS Cymru Annual Conference

2. Housekeeping Fire exits Mobile phones Translation

3. Croeso Welcome Lowri Norrington-Davies Housing Policy Division Welsh Government rentinghomes@wales.gsi.gov.uk www.wales.gov.uk/rentinghomes

4. What I’m going to cover : Overview Research to inform the current picture Key Findings Examples of practical problems Calls for reform Renting Homes White Paper Two Contracts for renting a home How will tenants and landlords be affected Fundamental, supplementary and additional terms Implementation Open discussion to examine the illustrative standard contract.

5. Overview: The Welsh Government's Renting Homes White Paper consultation ended on 16 th August, we proposed better arrangements for renting a home in Wales. The Welsh Government aims to achieve: ‘a flexible, efficient and responsive housing system that helps people to meet their housing needs’ Based on a simpler legal framework developed by the Law Commission, our proposals suggest introducing two contract types. We need to better understand what tenants want from their tenancy agreement and would appreciate your feedback on the contract developed by the Law Commission.

6. Research to inform the current picture: In 2012, Consumer Focus Wales asked tenants and landlords about making changes to arrangements for renting a home. While the research focused on renting from private landlords, many of the findings are also relevant to people who rent from local authorities or housing associations. The research captured the views of a wide range of tenants, letting agents and private landlords. It also considered other research that has been undertaken on this subject.

7. Research to inform the current picture The tenants included: (i)People on low income or who were unemployed (ii)Lone parents (iii)Older people (iv)People from black and ethnic minority groups, and refugees (v)High income earners (vi)Students (vii)Families with children (viii)Young professionals

8. Key Findings Tenants often don’t understand their rental contract. Tenants felt they did not have sufficient time to read the contract before signing, often because it was too long or difficult to understand. Tenants often have clauses included in their tenancy agreements that are unfair. The research found either tenants’ contracts were too basic or too long (up to 100 pages).

9. Examples of practical problems with current tenancy law: Difficulties in establishing what tenancy exists between a tenant and their landlord Tenancy agreements are difficult to understand - lack of clarity on rights and responsibilities leads to disputes Often individuals don’t understand their rights and responsibilities There is a lack of understanding when dealing with absent joint tenants Domestic abuse and relationship breakdown under joint tenancies

10. There have been strong legal arguments for housing law reform. They emphasise the immense complexity of current housing laws. Nick Madge, Circuit Judge said: “Housing law has become an impenetrable forest. […] There are few paths through the forest, known only to the most skilful lawyers Reform elsewhere in the UK: Scotland and Northern Ireland - require all tenancies to be underpinned by a written tenancy agreement So what’s proposed for Wales… Calls for reform:

11. Renting Homes White Paper: Based on Law Commission’s 2006 ‘Renting Homes’ report Single legal framework for social and private renting Clarity on rights and responsibilities through written contracts – with model contracts in plain language freely available to all A clearer legal framework will reduce disputes and potential litigation. Proposes using model contracts based on the illustrative standard contract we will now look at.

12. Two contracts for renting a home: Secure Contract: high level of security protected by law replaces Secure and Assured Tenancies can also be issued by private landlords (~ 1 in 10 of current private rentals are Assured) Standard Contract: low level of security protected by law greater security can be agreed through fixed terms (as at present) replaces Assured Shorthold, Introductory and Demoted Tenancies provides greater flexibility for short-term renting Specific aspects of the proposals…

13. How would tenants and landlords be affected? Easy to understand written contracts setting out rights and responsibilities Clarity on addressing anti-social behaviour Deals with domestic abuse by targeting the perpetrator Requirement for landlords to maintain the property and ensure no serious hazards are present Model contracts freely available that include all relevant law Provide legal certainty regarding contract terms Require a written contract to be issued, with a penalty if not Contractual responsibility to maintain the property and ensure no serious hazards are present Reduced costs through reduced complexity

14. a fundamental term which cannot be left out of the contract or changed a fundamental term which can be left out of this contract or changed, but only if that gives you greater protection than you are entitled to under Renting Homes a supplementary term which can be left out of this contract or changed Fundamental, Supplementary and Additional Terms The contract contains different types of terms. Whether a term may be left out or changed depends on which type it is. To make the contract easier to understand, symbols have been used for the different types of terms:

15. This contract contains different types of terms. Whether a term may be left out of this contract or changed depends on which type it is. To make the contract easier to understand, symbols have been used for the different types of terms— a fundamental term which cannot be left out of the contract or changed a fundamental term which can be left out of this contract or changed, but only if that gives you greater protection than you are entitled to under the Rented Homes Act 2006 a supplementary term which can be left out of this contract or changed Fundamental, Supplementary and Additional Terms:

16. As well as fundamental and supplementary terms, landlords and tenants will be able to include additional terms in the rental contract These terms, which may include matters such as whether pets are allowed in the property, can be individually negotiated between landlord and tenant As now, additional terms should comply with the Unfair Terms in Consumer Contracts Regulations 1999 Fundamental, Supplementary and Additional Terms:

17. All rental contracts will contain certain ‘fundamental’ and ‘supplementary’ terms set out by Welsh Government in primary and subordinate legislation These will include matters such as the landlord’s repairing obligations, the circumstances under which the contract may be ended, and actions which constitute unacceptable behaviour on the part of the tenant

18. Implementation Model contracts freely available in advance to help prepare All existing tenancies would automatically convert to the appropriate new contract on a set date – arrears transfer too New contracts could then be issued at suitable point, e.g. in private sector when one tenancy ends and another starts Continued engagement with stakeholders to minimise administrative burden Guidance for landlords and tenants to assist in the change Proposed to include Housing Association Rent Act tenancies Long timescale to enable full stakeholder engagement Further consultation on model contracts Draft Bill considered by Assembly in 2015 New scheme operational in 2016?

19. Law Commission – Illustrative Secure Contract

20. Thank you – any questions? Lowri Norrington-Davies Housing Policy Division Welsh Government rentinghomes@wales.gsi.gov.uk www.wales.gov.uk/rentinghomes