The Renters’ Rights Act: What landlords in Wales need to know about discrimination changes
The Renters’ Rights Act received Royal Assent on 27th October 2025, marking the most significant change to England’s private rented sector in decades. It introduces sweeping reforms – abolishing fixed-term tenancies, ending Section 21 “no fault” evictions, regulating rent increases, extending Awaab’s Law into the private rented sector, introducing a new private rented sector database and Ombudsman that landlords must sign up to, creating a new Decent Homes Standard – plus a lot more.
However, while headlines may suggest the Act affects all UK landlords, only around 1% of it applies to Wales.
So, what does this small but important section mean for Welsh landlords?
Rental discrimination: What’s changing in Wales
The part of the Act that extends into Wales focuses solely on non-discrimination in the private rented sector.
It will become unlawful for a landlord – or anyone acting on their behalf – to discriminate against applicants because they have children or receive benefits.
That means landlords and agents cannot refuse a prospective tenant from:
- Enquiring about or viewing a property,
- Accessing information about the property, or
- Entering into a tenancy,
…if the refusal is based on them having children under 18 or receiving benefit payments.
Ineffective contract terms
Any existing clauses that restrict landlords from letting to families or people on benefits will be rendered ineffective once the Act comes into force.
That includes terms found in:
- Mortgages,
- Insurance policies (taken out or renewed after the commencement date), and
- Superior leases or tenancy agreements that prohibit such lettings.
Where a clause banning children is in place, it will only be effective if it’s a proportionate means of achieving a legitimate aim (see below).
Limited defences and exemptions
There are very few valid defences for landlords. The main one available applies to cases involving children, where discrimination can be shown to be a proportionate means of achieving a legitimate aim.
For example:
- Refusing to let a small HMO room to a family of three due to overcrowding concerns would likely be justified.
- Refusing a family because you believe children might cause higher wear and tear would not.
- Restricting tenants due to an outdated mortgage or insurance term will not be a valid defence once those policies are renewed.
There’s no equivalent defence for prospective tenants receiving benefits.
Insurance products taken out before the Act
If a landlord holds an insurance policy taken out before the Act commences, and that policy explicitly prevents letting to tenants on benefits or with children, that restriction may continue to apply until the policy is renewed.
Upon renewal, any discriminatory terms will cease to have effect.
Preparing for compliance
Before the new provisions take effect, Welsh landlords should review their tenant selection criteria and ensure they are free from any unintentional bias.
Potentially discriminatory practices include:
- Ignoring benefit income when calculating affordability,
- Increasing income thresholds for applicants with children, or
- Requiring guarantors for specific groups.
Instead, landlords should adopt consistent, objective criteria that can be applied to all applicants, such as:
- A positive landlord reference,
- Evidence of regular rent payments,
- Proof of income (including benefits) sufficient to cover rent, and
- A satisfactory credit score with no CCJs.
When does it apply, and what do I need to do?
The Act directly amends all Welsh occupation contracts, inserting new non-discrimination clauses.
Once the Welsh Government confirms its commencement date, landlords will need to:
- Serve either an updated occupation contract, or
- A statement of variation within 14 days of commencement.
At this stage, the Welsh Government hasn’t set that date, but they’ve indicated at least six months’ notice will be given before the rules take effect.
In Wales, breaches will be enforced through fixed penalty notices, typically capped at £1,000.
What’s next?
CPS Homes will ensure all our landlord clients are fully compliant and kept up to date as the Welsh Government confirms timelines and implementation details. We’ll also continue to monitor whether wider elements of the English reforms – such as the abolition of fixed-term tenancies and Section 21 – may one day be mirrored in Wales.
Our expert view
By Nikki Lewis, Director of Operations at CPS Homes
This change is unlikely to significantly impact the vast majority of landlords, as most already approach tenant applications fairly and without discrimination.
What does concern me, however, is the precedent the Renters’ Rights Act sets. Welsh Government may, in time, look to adopt more of the English reforms by introducing their own legislation. If that happens, we could see fundamental changes to how tenancies operate in Wales – particularly around fixed-terms (or a lack of), possession rights and rent setting.
Our advice remains simple: stay informed, stay compliant, and lean on experts who understand both the legal and practical realities of letting in Wales.
At CPS Homes, we’re committed to guiding landlords through every change – large or small – so you can continue letting with confidence.
Feel free to get in touch if you have any questions regarding the new laws.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
