This is one of the several changes to legislation in Wales as part of The Renting Homes (Amendment) (Wales) Bill which also includes an extension of the minimum contract length from 6 months to 12 months.
The Welsh Government says it wants to give tenants more protection, stability and security in their homes, and so whilst some of this legislation was originally brought in to help with the pandemic it will now be part of the The Renting Homes Bill.
Other changes that will be taking place is the standardisation of the Tenancy Agreements.
The changes will affect 1 in 3 people in Wales who find themselves in rented accommodation.
David Wilton, Chief Executive of TPAS Cymru says,
“We particularly welcome the new protection measures which provide greater security regarding improved notice periods and offer flexibility should tenants’ circumstances change.”
Douglas Haig, MD of The Seraph Group and non-executive director for NRLA comments,
“Whilst it is a positive thing that Welsh Government recognise the need to maintain Section 21 we are disappointed mostly at the way they have introduced this despite plenty of evidence of an easier solution. Their main objective was to create 12-month tenancies which would have been easier to stipulate 12-month minimums allowing 6 months notice to be served within the tenancy. The way they have introduced it means that it has created a real imbalance and will mean that it will be difficult to preserve genuine 12-month tenancies. This will have a negative impact on the student market and young professionals in city centres and will only result in a reduction of choice of properties being available at the time these groups require the properties.
Overall it’s disappointing that they have introduced an unnecessarily complex system that doesn’t work for tenants or landlords but with a few minor tweaks could have done.”
The Welsh Government passed the bill yesterday with changes primarily related to the Social Housing sector and only minor changes to the Private Rented sector.
Other changes include a new S173 notice that replaces S21 where landlords will get 28 days to withdraw.
A positive outcome for landlords for these changes is that landlords will still be able to repossess their property if a tenant is in breach of contract.
The bill is due to come into force in Spring 2022.
As a property management company, Seraph is already supporting landlords with the six month notice periods and are at the forefront of legislation changes. If you are looking for a property management company that is able to take-on legal changes, assuring you have confidence in your agent and for your responsibilities as a landlord. Please don’t hesitate to contact us.