Industry News Calum Davies 11/02/2021

Welsh possession reform Bill approaches final hurdle

The Renting Homes (Amendment) Bill, which aims to give greater security of tenure to tenants, passed its penultimate hurdle in the Senedd (Welsh Parliament) yesterday.

During the stage three debate, Members of the Senedd only passed the Government’s amendments, primarily related to the social housing aspects of the Bill with minor changes affecting the private rented sector.

The Welsh Conservatives’ amendments focussed on achieving a greater balance in the Bill, representing many of the concerns the NRLA had expressed over the Bill’s passage.

These included:

  • Making anti-social behaviour a mandatory ground for possession
  • Addressing the discrepancy that could leave landlords who live in armed forces accommodation homeless if they need to move into their rental property. On this final point, the Minister has suggested using regulation-making powers to solve this oversight.

Laura Jones MS, the Conservative Shadow Housing Minister, also agreed with the NRLA concerns regarding the removal of any flexibility for landlords who need to maintain an annual cycle as part of their business, such as in the student sector. The Housing Minister, Julie James MS, unfortunately rejected these concerns in earlier stages of the legislative process.

Although these concerns did not materialise into successful amendments, landlords will be relieved that Plaid Cymru proposals did not reach the statute book. Their housing spokesperson, Delyth Jewell MS, attempted to change the Bill with various suggestions including landlords having to give tenants up to ten years notice and at least two years’ security of tenure to tenants for “no-reason-given” evictions.

Prior to this, the NRLA had success in the earlier stages of the Bill, with the Senedd Committee adopting many of our suggestions including exploring the feasibility of a Welsh Housing Court and addressing the lack of data regarding the PRS, as our calls for a Welsh Housing Survey would clearly address.

The Senedd Committee also persuaded the Government to amend the Bill in line with the NRLA proposal that landlords could have longer than 14 days to withdraw a S173 notice (the new S21 when the 2016 Act comes into force) if desired. Landlords will now get 28 days to withdraw.

When the Bill returns from recess in two weeks, the Senedd will consider the final text. Should it pass it will head for Royal Assent, becoming law in the Spring. However, it is worth highlighting that the Bill amends the as-yet-implemented Renting Homes Act 2016, which is scheduled to come into force in Spring 2022.

As part of this, the Welsh Government will consult on the new model contracts and fitness for human habitation standards. The NRLA will continue to act in the best interests of landlords across Wales and ensure members are kept up to date on developments and requirements ahead of the Act’s implementation.

Read more about the Bill’s journey here.