The latest update in our series of articles covering some of the latest news in the world of UK renting is a roundup of some of the important takeaways from the NRLA’s updates for Wales.
The NRLA has significantly expanded upon our guidance for converted contracts. A converted contract is one that began before 1 December 2022 as an AST or another type of tenancy. These contracts include a number of different rules and requirements in order to retain some of the rights and obligations from the previous tenancy regime.
There will be a shorter two-month notice period for the first converted periodic contract until May 31st 2023;
During the fixed term of the first converted contract, a two-month notice may be served;
This area of law has a number of outstanding questions due to the complexity of the conversion process and late amendments by the Welsh Government to the converted contract legislation.
In an effort to resolve these issues for landlords, the NRLA has raised all of them with the Welsh Government. The NRLA advises landlords to wait until closer to May 31, 2023, before issuing any converted terms.
Additionally, the NRLA has added a new page to its website that outlines the procedure for rent increases under the Renting (Homes) Wales Act. A number of topics are covered, including how to increase rent, what levels the rent can be increased to, and how the process differs for contract holders who moved in before the end of 2022.
The following guidance can be found here:
https://www.nrla.org.uk/resources/wales/rent-increases-in-wales
As part of the Plaid/Labour cooperation agreement, the Welsh government continues to look at some form of rent control, though it is unlikely to be legislation at any point in the next couple of years, if any legislation is to be passed at all.
Meanwhile, the NRLA continues to meet with the Welsh Government regularly in order to make the case that rent controls will reduce supply for contract holders and ultimately lead to higher rents, as landlords will be forced to raise rents to protect themselves from economic shocks if rent controls are implemented.
Earlier in February, most existing Section 21 notices were no longer legally enforceable in Wales. If the Section 21 notice expired before December 1st, landlords had two months to commence court proceedings.
In the near future, the NRLA will publish its guidance on seeking possession under an occupation contract. It is important to note, however, that the current court forms are not up to date, and the courts will have to learn how to apply this new legislation just as much as landlords.
Renting your own property in Wales without using a letting agent or managing properties on behalf of others in Wales requires a license and regular training. A failure to comply will result in the license being revoked and the property cannot be rented.
The NRLA has been notified by Welsh government that many landlords who are required to complete updates to their licences have not yet done so. Failure to complete the required training by February 28th 2023 could result in the landlord losing their RSW license.
If you are a landlord with properties in Wales and have any additional questions about how these updates affect you, please contact us with your questions so that we can assist you further.
If you found this update informative then why not read about buying property through a limited company or our article about reporting CGT next?
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