Welsh rent reforms: A cautionary tale for England’s landlords

It took more than 10 years of drafting and deliberation, but what could the Renting Homes (Wales) Act mean for England’s landlords facing the prospect of a Renters’ Rights Bill? Put simply, says one NRLA expert, it could be a disaster.

Mia Rotaru, public affairs officer at the National Residential Landlords Association (NRLA), says the Welsh Act was initially well-intentioned, but its implementation has been lacking.

Designed to create a fairer, simpler rental system, the Act introduced new contracts, strengthened tenant rights, and imposed stricter property standards.

But the road to reform has been bumpy.

Converted into occupation contracts

One of the big issues was the lack of a phased introduction as all assured shorthold tenancies (ASTs) and licences were converted into occupation contracts on 1 December 2022.

It was this sudden change that forced landlords to navigate a complex conversion process without adequate preparation – and that led to legal trouble and confusion, she says.

Mia points to the Scottish model, which had a gradual introduction with the new regulations being applied only to new tenancies.

That meant existing tenancies were allowed to phase out over time making the transition easier for landlords.

Unlike Scotland’s phased approach, Wales’ sudden overhaul overwhelmed landlords and tenants alike.

A government communications campaign proved inadequate, leaving many landlords confused, Mia says.

Landlords struggled to understand responsibilities

Mia continues: “Many landlords struggled to understand their new responsibilities, highlighting a need for more robust training and educational resources.”

While the Act aimed to balance tenant rights with landlord responsibilities, the outcome has been skewed, she says.

Landlords in Wales report increased burdens, rising costs and a decline in confidence.

Mia also highlights figures from the Ministry of Justice on how the reforms’ impact on landlord confidence which saw the number of accelerated possession claims increasing by 236% in the first year.

In England, claims went up by just 16% in the same period.

Upcoming Renters’ Rights Bill

Mia warns: “The difficulties faced by landlords and tenants with the Renting Homes (Wales) Act should serve as a valuable lesson for the upcoming Renters’ Rights Bill.

“Recognising the challenges faced in Wales will help with the implementation of the Renters’ Rights Bill and will help to maximise the benefits for both tenants and landlord.

“A phased approach should be considered to have a more practicable transition, giving landlords time to adapt and understand the new requirements while reducing the risk of non-compliance.”

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