Why Wales works better for landlords: Possession rights compared
A special look at regaining possession under Welsh law vs England’s upcoming Renters’ Rights Bill.
Welcome to the first in our new landlord blog series, where we compare key differences between the private rental laws in Wales and those soon to be introduced in England.
With England’s Renters’ Rights Bill expected to receive Royal Assent this Summer and begin rolling out from October, landlords across the UK are weighing up where their investments are best protected. In this edition, we focus on one of the most critical areas for landlords: regaining possession of your property – whether due to tenant issues, a planned sale, or personal use.
While English landlords will soon face stricter restrictions and fewer options, Welsh law continues to offer a more straightforward, flexible approach.
Fixed-term tenancies
Wales: Fixed-terms (e.g. a 6-month tenancy, a 12-month tenancy, etc) are still allowed.
England: Abolished. All tenancies in England will become periodic (open-ended) when the law comes in, even if both parties previously agreed a fixed-term. Every tenancy will continue until the tenants give two months’ notice – which can be given from day one and in any written format, including SMS or WhatsApp message – or the landlords gives notice. However, landlords are very restricted on when they can serve notice.
Fixed-terms provide a clear end date, which often leads to tenants leaving naturally or agreeing to renew. This reduces the need for formal possession action. Without fixed-terms – as will be the case in England – landlords are more likely to need to use formal routes to regain possession, but will have very limited grounds to do so.
‘No-fault’ evictions
Wales: Landlords can issue tenants with six-month notice to leave, without needing to specify a reason.
England: Landlords will need a reason to regain possession of their property – and it must be one of the very few reasons permitted by the law (we’ve listed some below).
Student tenancies
Wales: With fixed-terms still in existence, nearly all student tenancies naturally cease at the end of a fixed-term that is aligned with the academic year.
England: Without fixed-terms, there is a real concern that students may serve two months’ notice to leave at a bad time, e.g. midway through the academic year, when finding replacement tenants would be difficult.
Landlords can serve a ‘no-fault’ possession notice that falls in line with the next academic year, if:
- The property is a HMO and occupied by full-time students, and
- The landlord intends to re-let to full-time students the following academic year, and
- The tenancy was not agreed more than six months prior to the move-in date, meaning England may see their ‘student lettings season’ shift later.
However, landlords must give at least four months’ notice, and must have told the tenants in advance that they may rely on this reason to regain possession.
Landlords with non-HMO (1 and 2-bed) student properties are rightly concerned that they may have tenants leaving at awkward times, as this possession route is not available to them.
Landlords wanting to sell or move-in
Wales: As above, landlords don’t need to give a reason when issuing tenants with notice to leave: they can do so in any scenario, as long as it’s not within the fixed-term.
England: The law allows landlords to serve a possession notice if they wish to sell, or if they or their family need to move in. Neither reason can be used in the first 12 months of a tenancy, they’ll need to give four months’ notice to use them, and they can’t advertise the property for 12 months after the notice expires or a court claim for possession is filed.
Severe rent arrears
Wales: Landlords can serve a possession notice if their tenant is two months’ rent arrears. After serving the notice, they must allow two weeks before applying to the court for a possession order.
England: Landlords will no longer be able to take action after two months of missed rent. Instead, rent arrears will need to accumulate for three months before a possession notice can be served. On top of that, they must wait an additional month after serving the notice before applying to the court. In effect, landlords could be left without rent for four months before they’re even able to start possession proceedings. As a further kick in the teeth, rent arrears arising from the non-payment of Universal Credit cannot be included in the claim.
As the legal landscape continues to diverge, it’s clear that not all parts of the UK are equal when it comes to landlord rights. With more control over possession timelines and tenancy structures, Wales remains an attractive place to own and manage rental property.
In next month’s blog, we’ll be looking at another area of the private rented sector where Welsh landlords also enjoy greater autonomy.
If you're considering expanding or rebalancing your portfolio in light of the changes, we're here to offer expert, local advice. Call us on 02920 668585 for a no-obligation chat.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
