Is this the end of the Tenancy Agreement?

The Welsh Government issued a Consultation Document on Renting Homes in Wales this week which proposes to make rental agreements easier for both landlords and tenants.

If this comes in to force it will be the end of the ‘Tenancy Agreement’.  Going forward there will be two types of contract:-

1.        A ‘secure contract’ which will replace the secure tenancy agreements currently used by Local Authorities; and

2.       A ‘standard contract’ which will replace the current assured shorthold tenancy agreement.

Other than a change of name how will this affect you?

·         Contracts will consist of fundamental terms which cannot be removed from the contract.  This is in order to provide protection for both the landlord and tenants.

·         When the new Act is passed it is thought that it will provide that a written statement of occupation must be provided to the contract holder (currently known as ‘the tenant’) within two weeks of the effective date.  For each day the written statement is late the contract holder will not have to pay a day’s rent, up to a maximum of two months’ rent.

The current provision as to rent deposits will remain.  If a deposit is taken the landlord must lodge it with one of the Government Schemes within 30 days of receiving it and prescribed information must also be provided to the tenant/contract holder within 30 days of receipt of the deposit monies.

A failure to lodge the monies can result in a Court ordering the landlord to may three times the deposit monies to the tenant/contract holder and could delay a landlord from gaining possession of the property.

So are there any further changes planned?

Yes, there is currently a Bill before the Welsh Assembly for the implementation of Landlord Accreditation in Wales.  The scheme, which does already exist on a voluntary basis, recognises good landlords.  The scheme works by providing an accreditation to the landlord acknowledging their professional dealings.

To become accredited you must attend a development course which currently costs £75, if you book on line and £90 if you apply in writing.  The accreditation will last for five years however, each year you must carry out continued professional development activities, it being recommended that you obtain 12 points per year to continue with your accreditation. 

If the Bill is passed it will become mandatory for landlords to have the accreditation before renting a property out or alternatively, if an agent is used to rent the property it will be necessary to ensure that the managing agent has the necessary accreditation. 

So whilst there are no immediate changes it certainly appears that they are in the pipeline for the next 12 to 18 months.

Watch this space for updates later in the year on whether the changes will be brought in to effect.