The Renting Homes (Wales) Act 2016, which came into force on 1 December 2022, is the most significant overhaul of Welsh tenancy law in a generation. It replaced all Assured Shorthold Tenancies in Wales with occupation contracts — a new form of residential agreement with different terminology, stronger written statement obligations, a six-month no-fault notice period, and mandatory Rent Smart Wales registration for all landlords and self-managing landlords who also need a licence. Landlords with Welsh properties operating under English assumptions are routinely non-compliant.
Wales vs England — key differences
| Feature | 🏴 Wales (RHWA 2016) | 🏴 England (post-RRA 2025) |
|---|---|---|
| Agreement type | Occupation contract (not tenancy) | Tenancy (AST replaced by periodic tenancy) |
| Occupier name | Contract holder | Tenant |
| Written statement | Mandatory — within 14 days | Tenancy agreement recommended but not always mandatory |
| No-fault notice period | 6 months (s.173 notice) | No-fault possession abolished (RRA 2025) |
| Landlord registration | Mandatory — Rent Smart Wales | Not nationally required |
| Agent licensing | Mandatory — Rent Smart Wales | Not nationally required |
| Rent increase notice | 2 months — once per 12 months | 2 months — once per 12 months |
| Fitness for habitation | Statutory FFHH standard (Schedule 1) | HHSRS + Landlord and Tenant Act 1985 |
| Electrical inspection | EICR required (5-year cycle) | EICR required (5-year cycle) |
| Abandonment procedure | Statutory process available | No equivalent — must obtain possession order |
The two occupation contract types
The written statement — mandatory within 14 days
One of the most significant obligations under the Renting Homes (Wales) Act is the mandatory written statement. The landlord must provide the contract holder with a written statement of the occupation contract within 14 days of the occupation date. Failure to do so has a specific consequence: the landlord cannot serve a valid possession notice while the written statement has not been provided.
The Welsh Government has produced model written statement templates that incorporate all required fundamental and supplementary terms. Using these templates (available on gov.wales) is strongly recommended — they satisfy all statutory requirements and have been drafted to avoid common compliance gaps. The written statement must be given in a legible form that the contract holder can keep for reference.
Rent Smart Wales — mandatory registration and licensing
All private landlords with residential property in Wales must register with Rent Smart Wales. Self-managing landlords (those who handle their own lettings without a licensed agent) must also obtain a Rent Smart Wales licence. Using a licensed letting agent satisfies the licence requirement — but the landlord must still individually register.
Complete the online registration. Provide details of all properties in Wales. Pay the registration fee (currently around £45). Registration must be renewed every 5 years.
Self-managing landlords must complete Rent Smart Wales approved training to obtain a licence. Online training is available and typically takes 3–5 hours. Training covers legal obligations, the Renting Homes Act, and practical management.
After completing training, apply for the Rent Smart Wales licence. Licence is valid for 5 years. A fit and proper person assessment applies — serious convictions can result in refusal.
Registration and licence numbers must be displayed on all property advertisements. Failure to display is an offence and may affect the validity of possession notices.
A landlord who is not registered with Rent Smart Wales (or who uses an unlicensed agent without also being licensed themselves) cannot serve a valid section 173 (no-fault) possession notice. Courts have refused possession applications from unregistered landlords. Fines of up to £7,500 can be imposed for failure to register or licence.
Possession procedure — notice periods under the Act
| Notice type | Grounds | Minimum notice period | Earliest use |
|---|---|---|---|
| Section 173 — no-fault notice | No fault required — landlord seeking possession | 6 months | After first 6 months of contract |
| Section 159 — breach of contract | Breach of a term of the occupation contract | 1 month | Any time |
| Section 161 — estate management | Property needed for estate management purposes | 2 months | Fixed-term contracts: after fixed term |
| Section 165 — serious rent arrears | Two months' rent arrears (at date of notice) | 14 days | Any time |
| Section 175 — end of fixed term | Fixed-term contract ending | 2 months | During fixed-term period |
| Contract holder leaving | No grounds required — contract holder to landlord | 4 weeks (periodic); terms of break clause (fixed) | Any time |
The 6-month no-fault notice (s.173) is significantly longer than the old England/Wales 2-month Section 21 notice. Combined with the requirement that the contract must have been running for at least 6 months before notice can take effect, a landlord seeking possession without fault cannot gain vacant possession until at least 12 months into the contract in practice — and often longer if court proceedings are necessary after the notice expires.
Fitness for human habitation — Wales statutory standard
The Renting Homes (Wales) Act imposes a statutory Fitness for Human Habitation (FFHH) standard on all occupation contracts. The property must be fit for human habitation throughout the contract. The standard covers:
Contract holders can apply to the court for an order requiring the landlord to remedy a fitness deficiency. In serious or persistent cases, rent can be withheld pending remediation. The FFHH standard is directly enforceable by the contract holder — it is not only a local authority enforcement mechanism as under HHSRS in England.
Frequently asked questions
Were existing ASTs in Wales automatically converted to occupation contracts?
Yes — all existing assured shorthold tenancies and assured tenancies in Wales were automatically converted to occupation contracts on 1 December 2022. The landlord was not required to issue new written statements for existing tenancies at the point of conversion, but has been required to provide a written statement on request from the contract holder, and must ensure that any new or renewed agreement is a properly documented occupation contract. If a landlord has not yet provided a written statement to contract holders from pre-December 2022 tenancies, doing so immediately is strongly advisable — failure to have provided one remains a barrier to serving valid possession notices.
Can I charge a holding deposit in Wales?
Yes — holding deposits are permitted in Wales. The rules broadly mirror those in England: the holding deposit cannot exceed one week's rent, it must be repaid within 15 days (or applied to the rent/security deposit with agreement), and it must be repaid in full if the landlord decides not to proceed with the contract. Under the Renting Homes (Wales) Act, the use of holding deposits is addressed in the relevant regulations. Always document the holding deposit arrangement in writing and apply any applicable restrictions under Welsh regulations.
How does rent increase work under a Welsh occupation contract?
Rent increases under Welsh occupation contracts must be proposed with at least 2 months' written notice, limited to once per 12 months. The proposed increase must be set out in a written notice (using the prescribed form or equivalent). Contract holders have the right to challenge the proposed increase at the Residential Property Tribunal Wales if they believe it exceeds market rent. This is broadly similar to the England process, but the relevant tribunal is the Residential Property Tribunal Wales — not the First-tier Tribunal Property Chamber that handles English cases. See our Wales rent increase rules guide for the full procedural detail.
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