A recent update in Renting Homes (Wales) Act 2016, legislation has ploughed many unsuspecting Welsh landlords into confusion again.
What is the update?
On 6th December 2023 the legislation was updated to clarify when a Written Statement could be served.
The wording that has changed is a very small part, however, the knock on effect is the wording has changed in the Occupational Contract, specifically in the Explanatory Information section.
You have until 20th December 2023 to issue a Written Statement of Variation to your contract holders. Download a template statement of variation document here
Who does it affect
- Written statement for current tenancies. If you have let your property in the last year to new occupants on a new Occupational Contract, (ie. since the 1st December 2022), this will apply to you.
- From the 6th December 2023, any new contracts must have the updated new wording for it to be a ‘complete’ written statement.
This change does not affect converted contracts, or Universal Written Statements.
Why is this important?
The original wording of the Written Statement and Explanatory Information that was read and signed by your new Contract Holders, has been changed.
This technicality has triggered the need to issue a Variation of Enactment document to all Contract Holders. They need to be informed them their contracts have changed.
Landlords who have recently undertaken their Rent Smart Wales training will know, that you only have 14 days to serve Written Statements.
What if I don’t do one?
We do not know until there is case law, how this will affect Landlords do not serve this Variation.
Whenever there is a change in the legislation a written statement must be issued within 14 days. There is no definition on how small a change needs to be to not have the need to serve on, so until that happens (if at all), it is best not to assume it is not needed.
The wording that has changed is minor. But it is worth remembering that they have clarified and defined the legislation by an enactment, so this is not just an editorial change.
How many more times will this happen?!
This latest update just goes to show that the Welsh Government are still reviewing what has been put into law.
Every time they make an amendment, the changes cascade down to landlords to inform their contract holders of the change. This could happen several times more over the next 12 months, or not at all, we just don’t know.
How can I stay compliant?
If this applies to you, notify your contract holders before 20th December 2023. You need to put in writing of what the clause was, and what it now is.
To help Landlords stay compliant easily, the team at The Landlord Community have created a template Variation of Enactment document for Landlords to use. It can be easily purchased download and send within a few minutes.
