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Landlords’ views completely ignored as notice periods extended

A formal consultation that saw an overwhelming number of responses opposed to extend notice periods to six months has been ignored - and the proposal goes ahead despite minority support in a formal consultation.

The Renting Homes (Wales) Act 2016 comes into force on December 1 and in late September the Welsh Government announced a consultation on a proposal to apply a six-month no-fault notice period to existing tenancies. 

The six-month element would take effect from June 2023 with the six-month notice period already set to apply to new contracts starting from December 1.

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The consultation was promoted directly to landlords via Rent Smart Wales and in the national media. Consultation events were also held in collaboration with the National Residential Landlords Association and Tenants Participation Advisory Service Cymru.

Over 1,400 completed responses were received to the consultation, of which over 90 per cent were from private landlords and lettings agents.

Even the Welsh Government itself admits, in a statement, that “the vast majority of landlords and letting agents were against extending six-month notice periods to existing tenancies, and of those that were in agreement most favoured applying the change at a later date. The National Residential Landlords Association opposed the extension but suggested, if the extension went ahead that it should be delayed for up to two years.” 

On the other hand, all tenants and tenant representative bodies that replied were in favour of the proposed extension, with most also arguing it should be applied from December 1 rather than June 2023.

Julie James, the climate change minister in the Welsh Government responsible for housing, is choosing to ignore the vast majority of the responses and instead says: “The proposed extension of the six-month no-fault notice period was always going to generate highly contrasting views. Whilst noting the views of those landlords and agents that responded, I have decided that the societal and individual benefits accruing from the extension outweigh the negative impact on individual landlords, particularly in view of shorter notice periods of one month or less applying where there is a breach of contract.”

She continues: “At the same time, I am also mindful that landlords will not have had an opportunity to take the proposal into account in agreeing new contracts prior to the announcement of the consultation. Notwithstanding the calls from tenant representatives to introduce the extended no-fault notice period as soon as possible, I believe it is appropriate to allow landlords more time to plan than applying the change from December 1 would allow …  Therefore, I have decided to proceed with applying the extension from June 1 2023. I believe this achieves a reasonable balance between the rights of tenants and those of landlords.”

There has been a predictably furious response from the lettings industry. 

Tim Thomas, policy and campaigns officer for Propertymark, says: “Letting agents and their landlords showed great flexibility at the outset of the pandemic in their support of extended notice periods, but again we have a government pursuing permanent changes to what were supposed to be temporary measures.

“The Welsh Government says extending notice periods for existing tenancies from June is necessary to bring down the rising cost to taxpayers of temporary accommodation. What it fails to understand is the knock-on effect this strengthening of tenants’ rights will have on the confidence of landlords. New tenancies will also have to comply by 1 December.

“The private landlords our member agents represent have become important housing providers, but they need to know they can regain possession of their property when they need to do so. The best way to support tenants is to focus on policies that can increase the supply of housing rather those that will constrain it.”

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  • George Dawes

    Thank you for your comments which we are going to completely ignore as usual, democracy at work …

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    • A G
    • 14 November 2022 07:21 AM

    I can understand that, with the shortage of housing in the market right now, the last thing we want is to make people homeless so it’s not a disaster, even if it is a tad too long. Three months would have been better.

  •  G romit

    "...........is necessary to bring down the rising cost to taxpayers of temporary accommodation."

    That's all right then so long as the taxpayer saves money, sod the poor old Landlord who has to pick up the tab.

    Welsh Landlords should apply a blanket 10% rent rise explaining to tenants that this is the cost of this measure.

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    As a landlord in Wales we are very used to having our views ignored which is why I suspect we have a pretty awful housing crisis. Residential availability has reduced by 25% since the inception of Rent Smart Wales and isn’t going to improve. As a company we are certainly reducing our exposure to residential letting here in Wales as the risk reward is reduced dramatically. Rents however are at an all time high so the only ones that suffer are the tenants. The road to hell is paved with good intentions

  • Bob wellamd

    Did they seriously expect any tenant to object to living rent free with no consequences for 6 months? How typically Welsh of them.
    I guess they don't think a mass sell off from Landlords will impact social housing.

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    That isn’t the case as rent arrears are still 2 months notice it’s the no reason notice that has been amended

     
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    Can the no fault, 6 months notice, be served 6 months before the end of a 12 months tenancy?
    (After 6 months of the tenancy has passed)
    Or can it only be served once the tenancy becomes periodic?
    (After the 12 month tenancy has finished)

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    From what I have read the former case you put forward applies i.e. landlords can give six months notice once the first six months of the tenancy has elapsed.

     
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    Do tenants use the full notice period to look for alternative accommodation, or does it make no difference? Do they just wait until they are forced to move out, then think 'what do I do now?'

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    Of course they sweep it under the carpet until it happens

     
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    I didn’t comment on the Consultation but not published,
    So it must have been the truth.

  • Elizabeth Campion

    They are shutting down a free market. Can't be good for tenants

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