Rent not payable for unfit homes in Wales from 1 December 2022

The rules for renting a home in Wales changed on 1 December 2022, when the Renting Homes (Wales) Act 2016 replaced existing tenancy agreements with occupation contracts¹. Under the new rules, from 1 December 2022 onwards, a contract-holder may not have to pay rent for any time that the property is unfit for human habitation¹. The exception reported is fixed term standard contracts of seven years or more.

Existing domestic tenancies and licences in place immediately before 1 December 2022 converted to occupation contracts on that date in most cases, and renters became known as contract-holders¹. New agreements made from 1 December 2022 onwards are usually occupation contracts¹. There are two main types: secure occupation contracts, usually where the landlord is a community landlord such as a local authority, a Registered Social Landlord or a Private Registered Provider of Social Housing, and standard occupation contracts, usually where the landlord is a private landlord¹. Standard occupation contracts replaced assured tenancies and assured shorthold tenancies¹.

Landlords must provide a written statement of contract setting out the key information and terms¹. For new contracts made from 1 December 2022 onwards, the written statement should be given within 14 days of the day the contract-holder was entitled to move in¹. Where an existing tenancy or licence converted on 1 December 2022, the written statement should have been given by 1 June 2023¹. Landlords should not charge a fee for providing the written statement, though a reasonable fee can be charged for further copies¹.

Some agreements cannot be occupation contracts, including fixed term tenancies of more than 21 years, protected and statutory tenancies under the Rent Act 1977 and protected occupancies under the Rent (Agriculture) Act 1976, armed forces accommodation, direct access accommodation, B&B homeless accommodation arranged by a local authority with a private landlord, accommodation supporting asylum seekers under the Immigration and Asylum Act 1999, and accommodation provided for probation or bail purposes¹. Lodger agreements only become occupation contracts if the landlord gives notice saying so before or at the time the agreement is made¹.

Why it matters for households

The change affects people renting in Wales whose agreements are occupation contracts, including those whose tenancies converted on 1 December 2022¹. For standard occupation contracts, the rent liability for periods when a property is unfit for human habitation is affected from that date¹. The written statement determines which type of contract a household has, and the guidance notes that a landlord's failure to provide it within the required timeframe may entitle the contract-holder to compensation and can limit the action a landlord can take to end the contract².

Rent arrears thresholds are also set out. A landlord can generally begin the process of ending a standard occupation contract for arrears where the contract-holder pays rent weekly, two weekly or four weekly and has at least eight weeks' rent arrears; pays monthly and has at least two months' rent arrears; pays quarterly and at least one quarter's rent is more than three months in arrears; or pays yearly and at least 25% of the rent is more than three months in arrears¹. Where a landlord wants to end the contract because of rent arrears, they have up to six months from the date the notice was given to apply to court for possession¹.

Help with rent may come through Universal Credit or Housing Benefit, depending on circumstances such as age and the type of housing¹. Universal Credit takes five weeks from claim to payment and sometimes longer¹. The housing costs element is included in the Universal Credit award and is usually paid directly to the contract-holder, though it can be paid directly to the landlord in some circumstances, for example where rent payments have been missed². New Housing Benefit claims can still be made by people who have reached State Pension age or who live in certain supported, sheltered or temporary housing². Deductions apply for spare bedrooms: 14% for one spare bedroom and 25% for two or more².

What happens next

Changes intended to stop landlords directly or indirectly discriminating against contract-holders who either receive benefits or have children are in force in Wales from 1 June 2026¹. Most landlords must have provided existing contract-holders with updated contract terms, through a new written statement or a notice of variation, by 14 June 2026¹.

More on renting in Wales and the nations hub.