Written statements in Wales?

Hello, Renting Homes Wales processes for agencies and landlords to cope with the Transitional Information Period.

After first becoming aware of the Renting Homes Wales Act when presenting training for the Rent Smart Wales licensing I have followed the twists, turns and delays closely and can now see the light at the end of the tunnel. I think it’s recommended we view the Welsh changes to the agency process as a series of ‘events’ evidenced in writing by the use of a ‘written statement.’

The situation has gone back and forth with the Welsh government since December and no doubt will continue to do so in the future although we believe that after a few court judgements and some common sense will gradually be applied in the same way as over the years Deposit protection laws, the deregulation act, etc have softened to acknowledge late service of documents and non-duplication of requirements.

The first event that we encounter is Dec 1st 2022 when the new Act was released. The tenants were governed by the Housing Act 1988 until then and overnight became Contract Holders under the Renting Homes Wales Act 2016. This is a big change and hence a Written Statement of Conversion had to be provided to explain it to the tenants/Contract Holders by the end of the transition period at the end of May 2023.

The next event we encounter is if a renewal Occupation Contract (a substitute contract) is agreed upon within the transition period and this will have to be evidenced by the use of a Written Statement as per normal by writing and signing a contract by June 14th 2023.

Another event we may encounter is that a converted AST which was fixed-term comes to an end and automatically becomes periodic. Unfortunately, in Wales that too will give rise to a Substitute Contract and will need to be evidenced by a written statement! Again, by the 14th of June 2023.

With all of these, at present, an RHW2 form is required to be served at some point, we have always said that it is advisable to attach the RHW2 to the written statement as the government would not create a form unless they wanted it used. If this has been omitted then you still have time to send it by the end of May 2023 and this can be by email as the written statement already served will have gained permission for this.

After the transition period it will become apparent that many events will be referred to as needing Written Statements, for example, rent increases, change of occupiers even changes in legislation that Contract Holders have to be made aware of.

The latest changes two weeks ago will have finally given some clarity on a much-debated question and will have some bearing on the agency process too regarding the events above –

It has been decided that all converted ASTs will need a written statement telling the tenants about the conversion. If a substitute contract is also arranged within the transition period, even though the Contract Holders have signed and agreed on the new contract, a Written Statement will still have to be served on them to cover the period from Dec 1st 2022 until the start date of the substitute contract. I.e they are 2 separate events which both need written statements and this applies also to fixed terms becoming periodic.
By the way, it is likely that we will have to issue a written statement of variation to all Contract Holders to inform them of the ‘event’ of a an amendment to the legislation too. Guidance will be coming soon regarding this from the Welsh Government.

We have become event managers and paper pushers! But as we progress homeward through the haze of the transition period things will become more transparent.

Thank you for reading,

Dale

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