Year-long tenancies are set to become mandatory in Wales under a new law announced today.

The Renting Homes (Amendment) (Wales) Bill will prevent landlords from serving notice during the first six months of a tenancy.

Following this the obligatory notice period is to be extended from two to six months, meaning that it will be a year before landlords can repossess a property. 

Where tenant and landlord have agreed a 12-month contract, the minimum period before repossession is possible will be extended to 18 months.

The rule applies to Section 21 “no-fault” evictions, but shorter notice periods will be allowed where the tenant is in breach of their contract under Section 8 rules. 

The Bill amends the Renting Homes (Wales) Act 2016.

Should the Bill be passed by Members of the Welsh Assembly, the new law is likely to come into force in the spring of 2021.

Residential Landlords Association vice chair and director for Wales Douglas Haig says: “While we acknowledge the minister has recognised the complete removal of Section 21 would be bad for the sector, we are disappointed with today’s proposals.

“It is absolutely essential that landlords with a legitimate reason to repossess their property are able to do so.

“If they do not, many could opt to leave the market altogether – leaving renters with fewer options and potentially pushing rents up.

“The government says that those with grounds to repossess can still give the shorter notice period using Section 8.”

However, Haig says that 83 per cent of landlords who use Section 21 do so because of rent arrears, while over half have anti-social tenants. 

He says: “This proves that despite having grounds to evict landlords are currently five times more likely to use the ‘no fault’ Section 21 notice, due to the lengthy court waiting times and expense associated with Section 8.

“Despite this, proposals do not include any plans to reform the grounds process, something we believe is vital before any change of this kind is made, to avoid a devastating cut to the supply of homes to rent in Wales at a time when demand continues to grow.”

Welsh housing minister Julie James says: “The new Bill I am unveiling today will add further significant protections for those who rent their home in Wales to those already included in our landmark Renting Homes legislation. 

“These include, ensuring that a possession notice where there is no breach of contract cannot be served for the first six months of occupation, and where possession is sought, giving the contract holder six months’ notice.”

James says this will provide time for families facing repossession to find a new home. 

She adds: “I believe the Renting Homes (Wales) Act, as amended, will provide a sound basis for renting in Wales: balancing the needs and rights of both tenants and landlords and helping ensure our private rented sector is a well-managed option for households.”