Renting Homes (Wales) Act 2016

Landlord’s break clause

194Landlord’s break clause

(1)A fixed term standard contract may contain a term enabling the landlord to end the contract before the end of the fixed term by giving the contract-holder notice that he or she must give up possession of the dwelling on a date specified in the notice.

(2)References in this Act to a landlord’s break clause, in relation to a fixed term standard contract, are to the term mentioned in subsection (1).

195Minimum notice period

(1)The date specified in a notice under a landlord’s break clause may not be less than two months after the day on which the notice is given to the contract-holder.

(2)This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts with a landlord’s break clause.

196Restrictions on use of landlord’s break clause: first four months of occupation

(1)The landlord may not give notice under a landlord’s break clause before the end of the period of four months starting with the occupation date of the contract.

(2)If the contract is a substitute occupation contract, the landlord may not give notice under a landlord’s break clause before the end of the period of four months starting with the occupation date of the original contract.

(3)For the purposes of subsection (2)—

(a)an occupation contract is a substitute occupation contract if—

(i)the occupation date of the contract falls immediately after the end of a preceding occupation contract,

(ii)immediately before the occupation date of the contract a contract-holder under the contract was a contract-holder under the preceding contract and a landlord under the contract was a landlord under the preceding contract, and

(iii)the contract relates to the same (or substantially the same) dwelling as the preceding contract, and

(b)original contract” means—

(i)where the substitute occupation contract has an occupation date falling immediately after the end of a contract which is not a substitute occupation contract, the occupation contract which precedes the substitute occupation contract;

(ii)where there have been successive substitute occupation contracts, the occupation contract which preceded the first of the substitute occupation contracts.

(4)This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts, except fixed term standard contracts which—

(a)do not have a landlord’s break clause, or

(b)are within Schedule 9 (whether or not they have a landlord’s break clause),

and section 20 provides that this section must be incorporated, and must not be incorporated with modifications.

197Restrictions on use of landlord’s break clause: breach of information requirements

(1)If the landlord does not comply with section 31(1) or (2) (duty to provide written statement of contract), the landlord may not give notice under a landlord’s break clause before the end of the restricted period.

(2)The restricted period is six months starting with the day on which the landlord gives a written statement of the contract to the contract-holder.

(3)The landlord may not give notice under a landlord’s break clause at any time when the landlord has not provided a notice required under section 39 (duty to provide information).

(4)This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts with a landlord’s break clause.

198Restrictions on use of landlord’s break clause: security and deposit requirements

(1)The landlord may not give notice under a landlord’s break clause at a time when security required by the landlord in a form not permitted by section 43 has not been returned to the person by whom it was given.

(2)The landlord may not give notice under a landlord’s break clause at a time when any of subsections (3) to (5) apply unless—

(a)a deposit paid in connection with the contract has been returned to the contract-holder (or any person who paid the deposit on his or her behalf) either in full or with such deductions as may have been agreed, or

(b)an application to the county court has been made under paragraph 2 of Schedule 5 and has been determined by the county court, withdrawn, or settled by agreement between the parties.

(3)A deposit has been paid in connection with the contract but the initial requirements of an authorised deposit scheme have not been complied with.

(4)A deposit has been paid in connection with the contract but the landlord has not provided the information required by section 45(2)(b).

(5)A deposit paid in connection with the contract is not being held in accordance with an authorised deposit scheme.

(6)This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts with a landlord’s break clause; section 20 provides that this section—

(a)must be incorporated, and

(b)must not be incorporated with modifications.

199Recovery of possession

(1)If the landlord gives the contract-holder a notice under the landlord’s break clause, the landlord may on that ground make a possession claim.

(2)Section 215 provides that if the court is satisfied that the ground is made out, it must make an order for possession of the dwelling, unless section 217 (retaliatory evictions) applies (and subject to any available defence based on the contract-holder’s Convention rights).

(3)This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts with a landlord’s break clause.

200Restriction on section 199

(1)The landlord may not make a possession claim on the ground in section 199—

(a)before the date specified in the notice given by the landlord to the contract-holder under the landlord’s break clause, or

(b)after the end of the period of two months starting with that date.

(2)This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts with a landlord’s break clause.

201Termination of contract under landlord’s break clause

(1)If the contract-holder gives up possession of the dwelling on or before the date specified in a notice under the landlord’s break clause, the contract ends on the date specified in the notice.

(2)If the contract-holder gives up possession of the dwelling after that date but in connection with the notice, the contract ends—

(a)on the day on which the contract-holder gives up possession of the dwelling, or

(b)if an order for possession is made, on the date determined in accordance with section 206.

(3)The notice ceases to have effect if, before the contract ends—

(a)the landlord withdraws the notice by further notice to the contract-holder, and

(b)the contract-holder does not object to the withdrawal in writing before the end of a reasonable period.

(4)This section is a fundamental provision which is incorporated as a term of all fixed term standard contracts with a landlord’s break clause.