The Renting Homes (Fees etc.) (Wales) Act 2019 (Transitional Provision for Assured Shorthold Tenancies) Regulations 2019

Welsh Statutory Instruments

2019 No. 1151 (W. 201)

Housing, Wales

The Renting Homes (Fees etc.) (Wales) Act 2019 (Transitional Provision for Assured Shorthold Tenancies) Regulations 2019

Made

18th July 2019

Laid before the National Assembly for Wales

22nd July 2019

Coming into force

1st September 2019

The Welsh Ministers, in exercise of the power conferred on them by section 25 of the Renting Homes (Fees etc.) (Wales) Act 2019 M1 , make the following Regulations.

Marginal Citations

M1 2019 anaw 2; see section 28 for the definition of “regulations”.

Title and commencement E+W

1.—(1) The title of these Regulations is the Renting Homes (Fees etc.) (Wales) Act 2019 (Transitional Provision for Assured Shorthold Tenancies) Regulations 2019.

(2) These Regulations come into force on 1 September 2019.

Commencement Information

I1 Reg. 1 in force at 1.9.2019, see reg. 1(2)

Interpretation E+W

2.  In these Regulations—

“the Act” (“y Ddeddf”) means the Renting Homes (Fees etc.) (Wales) Act 2019;

“assured shorthold tenancy” (“tenantiaeth fyrddaliadol sicr”) has the same meaning as in Part 1 of the Housing Act 1988 M2 .

Commencement Information

I2 Reg. 2 in force at 1.9.2019, see reg. 1(2)

Marginal Citations

M2 1988 c. 50.

Application of Parts 1 to 5 and 7 of the Act in respect of assured shorthold tenancies E+W

3.  Parts 1 to 5 and 7 of the Act (including section 20, [F1 and sub-paragraphs (2) to (3B) of paragraph 10A of Schedule 1,] when read as provided for in this regulation) are to be treated as having effect in relation to assured shorthold tenancies, and for this purpose—

(a) references in the Act to a standard occupation contract are to be read as references to an assured shorthold tenancy,

(b) references in the Act to a contract-holder are to be read as references to a tenant under an assured shorthold tenancy,

(c) references in the Act to a landlord are to be read as having the same meaning as do references to a landlord in the Housing Act 1988,

(d) section 20 of the Act is to be read as follows—

“Restriction on terminating contracts

20.— (1) A landlord of a dwelling subject to a standard occupation contract may not give a notice under subsection (1)(b) or (4)(a) of section 21 of the Housing Act 1988 in relation to the dwelling at a time when—

(a) the landlord has required a prohibited payment to be made,

(b) as a result of the requirement, a prohibited payment has been made to the landlord or to any other person, and

(c) the prohibited payment has not been repaid.

(2) A landlord of a dwelling subject to a standard occupation contract may not give a notice under subsection (1)(b) or (4)(a) of section 21 of the Housing Act 1988 in relation to the dwelling at a time when—

(a) a holding deposit paid in relation to the standard occupation contract has not been repaid, and

(b) the circumstances are such that the failure to repay the deposit amounts to a breach of the requirements of Schedule 2.

(3) In determining for the purposes of this section whether a prohibited payment or a holding deposit has been repaid, the payment or deposit is to be treated as having been repaid to the extent (if any) that it has been applied towards either or both of the following—

(a) a payment of rent under the tenancy;

(b) a payment required as security in respect of the tenancy.”F2 ...

[F3 (da) paragraph 10A of Schedule 1 to the Act is to be read as if—

(i) for sub-paragraph (2) there were substituted—

“(2) But sub-paragraph (1) does not apply in relation to⁠—

(a) a standard occupation contract where the allocation rules (within the meaning of paragraph 15 of Schedule 3 to the 2016 Act) did not apply to the making of the contract, or

(b) a standard occupation contract mentioned in sub-paragraph (3).”;

(ii) for sub-paragraph (3) there were substituted—

“(3) A payment of a service charge is a permitted payment if it is required under a standard occupation contract which relates to supported accommodation.”;

(iii) after sub-paragraph (3) there were inserted—

“(3A) For the purposes of sub-paragraph (3) accommodation is “supported accommodation” if⁠—

(a) it is provided by a community landlord or registered charity (within the meaning of the 2016 Act),

(b) the landlord or charity (or a person acting on behalf of the landlord or charity) provides support services to a person entitled to occupy the accommodation, and

(c) there is a connection between provision of the accommodation and provision of the support services.

(3B) But accommodation in a care institution (within the meaning of paragraph 4 of Schedule 2 to the 2016 Act) is not supported accommodation.”, and]

(e) Schedule 3 to the Act is to be treated as being omitted.

Textual Amendments

F1 Words in reg. 3 inserted (with effect in accordance with s. 15(4) of the amending Act) by Renting Homes (Amendment) (Wales) Act 2021 (asc 3), ss. 15(3)(a), 19(1) (with s. 15(5)-(7))

F2 Word in reg. 3(d) omitted (with effect in accordance with s. 15(4) of the amending Act) by virtue of Renting Homes (Amendment) (Wales) Act 2021 (asc 3), ss. 15(3)(b), 19(1) (with s. 15(5)-(7))

F3 Reg. 3(da) inserted (with effect in accordance with s. 15(4) of the amending Act) by Renting Homes (Amendment) (Wales) Act 2021 (asc 3), ss. 15(3)(c), 19(1) (with s. 15(5)-(7))

Commencement Information

I3 Reg. 3 in force at 1.9.2019, see reg. 1(2)

Julie James

Minister for Housing and Local Government, one of the Welsh Ministers

Explanatory Note

(This note is not part of the Regulations)

The Renting Homes (Fees etc.) (Wales) Act 2019 (“the Act”) prohibits a landlord, letting agent or any other person from requiring a prohibited payment to the landlord, letting agent or any other person—

(a)

in consideration of the grant, renewal or continuance of a standard occupation contract, or

(b)

pursuant to a term of a standard occupation contract which purports to require the payment to be made.

Payments are prohibited unless they are permitted under Schedule 1 to the Act. The Act also makes provision about holding deposits and in relation to requirements to publicise certain fees charged by letting agents.

Regulation 3 makes transitional provision so as to apply Parts 1 to 5 and 7 of the Act to an assured shorthold tenancy under Part 1 of the Housing Act 1988 (“the 1988 Act”). The transitional provision made in respect of section 20 of the Act in regulation 3(d) restricts a landlord of a dwelling that is subject to a standard occupation contract from giving a notice under section 21(1)(b) or (4)(a) of the 1988 Act (“section 21 notice”) in relation to the dwelling if the landlord has required a prohibited payment and, as a result of that requirement, a payment has been made but not repaid. Similarly, if a holding deposit paid in relation to a standard occupation contract has not been repaid and the circumstances are such that the failure to repay the deposit amounts to a breach of the requirements of Schedule 2 to the Act, a section 21 notice may not be given.

Under the Renting Homes (Wales) Act 2016 (“the 2016 Act”) an assured shorthold tenancy converts to a standard occupation contract by virtue of section 240 of, and Schedule 12 to, the 2016 Act. The 2016 Act makes provision about tenancies and licences which confer the right to occupy a dwelling as a home, including provision establishing two kinds of contract for the purpose of renting homes. A “dwelling” is defined in section 246 of the 2016 Act as a dwelling which is wholly in Wales. The Act follows the 2016 Act definition of “dwelling”, therefore, these Regulations do not apply to an assured shorthold tenancy of a cross border property (i.e., a dwelling which is not wholly in Wales).

The Welsh Ministers' Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, it was not considered necessary to carry out a regulatory impact assessment as to the likely costs and benefits of complying with these Regulations.