9.Under the 2016 Act, most tenancies and licences of dwellings occupied by individuals as homes in Wales are occupation contracts. Two types of occupation contract can exist under the 2016 Act; secure (which are periodic contracts) or standard (which are either fixed term or periodic contracts) (see sections 8 to 17 of the 2016 Act). Not all tenancies and licences of dwellings will be occupation contracts (see Schedule 2 to the 2016 Act). The 2016 Act comes into force on a day appointed by the Welsh Ministers (see section 257(2) of that Act).
10.The 2016 Act also makes provision about the terms that are incorporated into each type of occupation contract and the respective rights and obligations of the landlord and contract-holder, including the provision of a written statement of the contract. See sections 7(5) and 244 of that Act for the meaning of “landlord” and “contract-holder”.
11.Part 9 of the 2016 Act makes provision about the termination of occupation contracts by the landlord and the contract-holder. In particular, sections 173, 186 and 194 make provision about the termination of a standard occupation contract by the landlord.
12.Section 173 of the 2016 Act states that a landlord can end a periodic standard contract by giving the contract-holder a notice that the contract-holder must give up possession of the dwelling on a particular date. In these Explanatory Notes, a notice of this type is referred to as a “section 173 notice” or “notice under section 173”.
13.Section 186 of the 2016 Act provides that a landlord can give a contract-holder of a fixed term standard contract a notice that the contract-holder must give up possession of the dwelling on a particular date. This date cannot be before the last day of the fixed term for which the standard contract was made. In these Explanatory Notes, a notice of this type is referred to as a “section 186 notice” or “notice under section 186”.
14.Section 194 of the 2016 Act states that a fixed term standard contract can contain a landlord’s break clause. A landlord’s break clause enables a landlord to bring a fixed term standard contract to an end before the end of the fixed term by giving the contract-holder a notice to that effect.
15.Certain restrictions apply before a landlord can give notice under these provisions. This Act amends the provisions relating to section 173 notices, section 186 notices and landlords’ break clauses in order to increase the security of occupation of a contract-holder under a standard occupation contract.
16.The 2016 Act also provides that, on the day to be appointed by the Welsh Ministers, most existing tenancies and licences of dwellings occupied by individuals as homes in Wales will convert into an occupation contract (see sections 239 to 241 of the 2016 Act). Schedule 12 to the 2016 Act makes further provision about the conversion of existing tenancies and licences into occupation contracts on the appointed day.