How are Notice Periods Changing for Landlord from 1st December 2022?

When The Renting Homes (Wales) Act 2016 comes into force on 1st December 2022, the minimum notice period will increase to six months. However, there are some exceptions during the transition period.

At present, and until 30th November 2022, landlords must serve a minimum two-months' notice on their tenant to take back possession of their property in what is commonly known as a no-fault eviction (shorter periods will continue to apply for tenancy breaches). From 1st December 2022, this notice period will increase to six months (key exceptions depend on when and the tenancy agreement began and in what format - read on for details).

When The Renting Homes (Wales) Act 2016 comes into force on 1st December 2022, Assured Shorthold Tenancies (AST's) will no longer exist as they are automatically converted to the new ‘occupation contracts’. Therefore, the old Section 21 notices for possession become null and void.

What happens if a Section 21 Notice is served before 1st December 2022?

However, there are plans to allow a section 21 notice served prior to implementation of the Renting Homes Act on 1st December 2022 to be valid for two months after the possession date stated on the notice. For example, a Section 21 notice issued on 30th November 2022 with a possession date of 30th January 2023 would expire on 30th March 2023. Possession proceedings would need to commence prior to this date.

If the notice is served prior to 1st December 2022, and the possession date stated on the notice also falls before 1st December 2022, it is expected that the notice will expire two months after the implementation of the Act. In these instances, a possession claim made before the expiry date of the notice would be considered under the Housing Act 1988, rather than the Renting Homes Act. Please note that this has not yet been made law.

How does the format of the tenancy and when it began affect the notice period?

Assured shorthold tenancies that are already in place on 1st December 2022 will be automatically converted to occupation contracts under the new legislation. If the tenancy agreement is already a periodic one (month-by-month following the end of a fixed term) on 1st December 2022, landlords retain the option to serve two months' notice until that periodic tenure ends.*

*Please note, at time of publishing the Welsh Government is consulting on whether or not to create a time limit for this, mooted to be 31st May 2023

If the contract is in its fixed-term on 1st December 2022, landlords retain the option to serve two months' notice until the end of the fixed-term, after which the notice period rises to six months if the tenants continue to occupy on either a periodic contract or a new fixed-term contract.

Further reading

Want to know more? Head on over to the Renting Homes (Fitness for Human Habitation) (Wales) Regulations 2022 (https://www.legislation.gov.uk/wsi/2022/6/made) or Welsh Government’s accompanying guidance (https://gov.wales/fitness-homes-human-habitation-guidance-landlords-html#section-88908).

Let Bay help with the transition.

As experienced letting agents, we have helped our landlords comply with a multitude of regulation changes over the last twenty years, taking the hassle out of what can be an onerous process.

Our team are up to speed with The Renting Homes (Wales) 2016 Act and are helping prepare landlords for the changes ahead by:

• Working with our landlords in advance of the keys implementation dates to put efficient processes in place to ensure their properties are compliant, safe and legal.
• Saving out landlords the cost of a Rent Smart Wales landlord licence and the hassle of ongoing training through our fully managed service.
• Provide out landlords with their own dedicated Property Manager as a point of contact
• Producing a walkthrough video tour and high-level photography as part of our standard marketing package.
• Providing our landlords with peace of mind through our Propertymark membership, Client Money Protection (CMP) policy, professional indemnity insurance, and redress scheme membership.