CPS Homes lobbies Welsh Government for change
CPS Homes are currently lobbying Welsh Government to make much-needed amendments to their legislation in order to provide absolute clarity on when a landlord may give contract-holders a written statement of the occupation contract.
As it stands, The Renting Homes (Wales) Act 2016 says one thing, whereas the explanatory information that must be provided with every occupation contract – which is prescribed by Welsh Government within The Renting Homes (Explanatory Information for Written Statements of Occupation Contracts) (Wales) Regulations 2022 – says another.
What does the legislation say at the moment?
Section 31(1) of The Renting Homes (Wales) Act 2016, says:
“The landlord under an occupation contract must give the contract-holder a written statement of the contract before the end of the period of 14 days starting with the occupation date.”
The Act gives Welsh Ministers the power to create Regulations, and Section 3(f) of The Renting Homes (Explanatory Information for Written Statements of Occupation Contracts) (Wales) Regulations 2022 says:
“A written statement of an occupation contract must contain explanatory information about the following matters –
- that the written statement of the occupation contract must be given to the contract-holder within
- (i)14 days of the occupation date”
What is the issue here?
We’ve explained to Welsh Government that the Act and the Regulations are stipulating two very different periods within which the written statement can be given.
The Act stipulates the latest date by which a written statement has to be given, but no earliest date. However, by stating “within 14 days of the occupation date”, the Regulations suggests the period to give the written statement starts 14 days before and ends 14 days after the occupation date.
How is it causing problems?
We’ve had contract-holders who w ant to get out of their contract early claim that, as they’ve been given the written statement more than 14 days before their occupation date, it’s been given too early and thus invalidates the contract. Each time such a claim is made, we push back and ask them to read the Act, but they prefer to point us to the Regulations as they contain the wording that backs up their argument.
It means we become embroiled in an unnecessary back-and-forth that would be avoided if Welsh Government make the required amendments.
How has it happened?
We think a very simple mistake has occurred here, albeit one that is causing a lot of headaches. We believe the person(s) drafting the Regulations has misinterpreted the wording of the Act to mean written statements can only be served within 14 days of the occupation date. It’s surprising this escaped Welsh Government’s quality assurance checks before being published.
Thinking about it practically, if landlords were only allowed to give the written statements 14 days before the occupation date, prospective contract-holders would have no security of knowing they have a property to move into until – at most – two weeks before they’re due to move in, as the landlord could pull the plug on any proposed contract 15+ days before.
Students, in particular, source accommodation months in advance of moving in, so for the legislation to prevent students from knowing they’ve got a home to move into would surely go against one of Welsh Government’s biggest aims when introducing the Act, which is to provide security of tenure.
So, in our mind, it makes sense that a written statement can be issued at any time, providing it’s no later than 14 days after the occupation date. This is what the Act states, but the Regulations muddy.
Why can’t landlords just alter the explanatory information to reflect the wording of the Act?
Given the Regulations are yet to be amended, any changes to the explanatory information would seemingly go against what is written in legislation. In short, landlords (and agents!) are between a rock and a hard place. We – and now Welsh Government – know that the information contract-holders are being given is contradictory, but until Welsh Gov change what’s written in law, we can’t make the necessary changes. It’s a very bizarre position to be in and one we hope changes very soon.
What have Welsh Government said so far?
Via Rent Smart Wales, we’ve received the following correspondence from Welsh Government:
“Any explanatory information contained with regulations and model contracts would not override what is provided for in the Act (primary legislation) under section 31. So, the requirement is that ‘the landlord under an occupation contract must give the contract-holder a written statement of the contract before the end of the period of 14 days starting with the occupation date’.
It is important to distinguish between the explanatory information and actual terms contained within the written statement. Explanatory information is not a term, rather it provides additional context to explain the meaning and effect of some terms. Therefore, it does not change the meaning of any fundamental or supplementary term as set out in the legislation.
The purpose of this explanatory information is to make the contract-holder aware of the ‘last’ date by which they should have received their written statement (if it was received later than this date then the explanatory information alerts them to the compensation arrangements). If the agent considers an amendment to the explanatory information would be helpful here it can be done. However, when WG consider any revisions to the explanatory information regulations, we will consider whether further clarification of this point is needed.”
We’re pleased that Welsh Government recognise the issue and have confirmed that the wording of the Act prevails over the Regulations. As per their suggestion, we have asked that an amendment to the legislation is made as a matter of urgency, in order to prevent any further, unnecessary disputes between landlords and contract-holders.
Share the burden of the new legislation and benefit from the peace of mind we provide
With enactment of The Renting Homes (Wales) Act still less than nine-months-old, elements of it are only now being tried and tested. On an almost-weekly basis, we’re unravelling the complexities of the legislation when the practicalities of abiding by it are put into practice, which is throwing up many questions that – on the face of it – are difficult to answer.
Between the Act, its Regulations, Welsh Government guidance, British Standards and more, it’s a minefield. So much so, more and more landlords are choosing to instruct CPS Homes to navigate the choppy waters and provide the peace of mind they crave, as we are prepared to seek answers on the most effective and efficient route to compliance from the powers-that-be.
If you'd like to discuss CPS Homes taking over the management of your property, get in touch with our Director of Operations, Nikki Lewis, via nikki.lewis@cpshomes.co.uk. Free management terms are available where your current agent may charge you for exiting your contract with them.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
