The Welsh government will apply a six-month no-fault notice period to existing tenancies that convert to occupation contracts under the Renting Homes (Wales) Act 2016.
The extension will take effect from 1 June next year. The six-month notice period already applies to new contracts starting from 1 December this year.
The decision comes following a consultation on the proposal to apply a six-month no-fault notice period to existing tenancies that convert to occupation contracts under the act, to take effect from 1 June 2023.
The consultation received 1,400 responses, of which over 90% were from private landlords and lettings agents.
The majority of landlords and letting agents were against extending six-month notice periods to existing tenancies, and of those that were in agreement most favoured a that it should be delayed for up to two years if the extension went ahead
Meanwhile, the National Residential Landlords Association opposed the extension but suggested, if the extension went ahead that it should be delayed for up to two years.
All tenants and tenant representative bodies that replied were in favour of the proposed extension, with most also arguing it should be applied from 1 December instead of 1 June 2023.
Welsh government minister for climate change Julie James says she decided to proceed with the extension from 1 June 2023 because it “achieves a reasonable balance between the rights of tenants and those of landlords”.
James explains: “The proposed extension of the six-month no-fault notice period was always going to generate highly contrasting views.”
“Whilst noting the views of those landlords and agents that responded, I have decided that the societal and individual benefits accruing from the extension outweigh the negative impact on individual landlords, particularly in view of shorter notice periods of one month or less applying where there is a breach of contract.”
“I am also mindful that landlords will not have had an opportunity to take the proposal into account in agreeing new contracts prior to the announcement of the consultation.”
“Notwithstanding the calls from tenant representatives to introduce the extended no-fault notice period as soon as possible, I believe it is appropriate to allow landlords more time to plan than applying the change from 1 December would allow.”
“This is also in keeping with the general commitment we have made to giving six months’ notice of significant matters relating to renters’ tenure security
The Renting Homes (Wales) Act 2016 comes into force on 1 December this year and aims to improve the security of tenure for renters. This includes increasing the period of notice that a landlord must give when seeking repossession of their property in instances where the renter is not at fault.
James says the act will “lay the foundation for a more stable and successful rented sector in the years to come”.
These new regulations were laid before the Senedd on 10 November and will be debated before the 2016 Act is implemented on 1 December.
Commenting on the decision, Propertymark policy and campaigns officer Tim Thomas says: “Letting agents and their landlords showed great flexibility at the outset of the pandemic in their support of extended notice periods, but again we have a government pursuing permanent changes to what were supposed to be temporary measures.”
“The Welsh Government says extending notice periods for existing tenancies from June is necessary to bring down the rising cost to taxpayers of temporary accommodation. What it fails to understand is the knock-on effect this strengthening of tenants’ rights will have on the confidence of landlords. New tenancies will also have to comply by 1 December.”
“The private landlords our member agents represent have become important housing providers, but they need to know they can regain possession of their property when they need to do so. The best way to support tenants is to focus on policies that can increase the supply of housing rather those that will constrain it.”
