The Renting Homes (Wales) Act 2016 is due to come into force on the 1st December 2022.
Landlords and Agents need to be aware of the serious financial repercussions for non-compliance.
Non-compliance means that your tenants (contract holders) are legally entitled to pursue you in the Courts for financial compensation should the new legislation be breached.
As of 1st December 2022:
- The tenant becomes the contract holder.
- The tenancy agreement becomes the occupation contract .
- Any existing assured short-hold/secure tenancy agreement or licence will convert to an occupation contract.
Compensation/damages is payable by the landlord if he or his agents:
- Fail to give the contract holder a written statement within 14 days from the occupation date specified in the occupation contract.
- Fail to provide a complete written statement.
- Fail to provide a correct written statement.
- Fail to provide a written statement in respect of a conversion from assured short-hold etc; to occupation contract.
- Fail to provide information in relation to the landlord – the landlord’s identity and address.
- Fail to provide information in relation to a change of identity of a landlord and their address.
- Fail to provide a written statement of variation of a periodic standard contract.
- Failure to provide a written statement of variation of a fixed terms standard contract.
Examples of compensation/damages
Failure to provide written statement – compensation is payable in accordance with section 87 of the Act and is equivalent to a day’s rent for each day that the written statement is not provided, up to a maximum of two month’s rent until the statement has been provided.
However, If the contract-holder believes the failure to provide the written statement was intentional, section 87 also enables the contract-holder to apply to the court for the compensation amount to be increased.
Interest will be added to the compensation amount if the landlord fails to provide the statement within the two month period.
Section 88 enables the contract-holder to set off any compensation he or she is owed against rent.
Failure to provide a complete written statement of the contract – the contract-holder may apply to the court for a declaration. If the court concludes that the provision of an incomplete statement was deliberate on the part of the landlord it can order the landlord to pay compensation to the contract-holder and that compensation may be increased up to a maximum of double the original amount.
MLS
Here at MLS we are regularly instructed by landlords to advise on compliance and possession claims. If you have any questions please contact us on 01244 478 730 and we will be happy to help.
Useful Links
https://gov.wales/landlords-housing-law-changing-renting-homes
This article is for information purposes only and does not constitute legal advice. Please contact us for advice.
