The Renting Homes (Wales) Act 2016 comes into force on the 1st of December 2022. This will impact the way properties are rented in Wales – it will impact both landlords and tenants.
One of the key changes is that assured shorthold tenancies are being replaced with what will be known as occupation contracts and tenants will be known as contract-holders.
Landlords will have a certain time frame to provide existing tenants with the occupation contract; the landlord will have to provide a written statement which confirms the terms of the contract. Any new occupation contract entered into from the 1st of December 2022 onwards will require the landlord to provide the written statement within the first 14 days of the agreement. There will be sanctions for failing to provide this information.
There will be two types of occupation contracts:
- Secure contract: these will replace secure tenancies that social landlords such as housing associations and local authorities provide.
- Standard contract: these will be the default contract for private landlords
The written statement must include the following:
- Key matters, which include the name of the landlord, tenant, occupation date, rent payment date etc.
- Fundamental Terms, these terms will clarify the obligations of the landlord and the contract-holder.
- Supplementary Terms, will include terms such as payment of utility bills, Council Tax; these terms cannot override the fundamental terms.
- Additional Terms, these terms will be agreed between the landlord and the contract holder such as pets at the property, no smoking etc.
If you would like further guidance in relation to what to include in the occupation contract, then please do not hesitate to get in touch by emailing or