Renting Homes (Wales) Act 2016

198 Restrictions 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to the county court has been made under paragraph 2 of Schedule 5 and has been determined by the county court, withdrawn, or settled by agreement between the parties.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.