Changes to Welsh Housing Law

[Melboy]

If you're in Wales, or own a property there, you're probably aware that the Welsh Senedd intends to alter the way tenancies are created in Wales.

There are two basic things you need to know:

1. The changes are coming in from 15 July (for new tenancies).

2. Existing tenancies will need to be converted into new Occupation Contracts, but landlords will have a further 6 months to do this.

I know nothing about being a landlord in Wales but if COR's experiences are anything to go by it does not look like a bright future for being a Welsh landlord if this Welsh Senedd are getting involved in new contracts which I feel sure will be heavily weighted in favour of the tenant rather than the landlord. We shall see what the new policies will be.

It would be interesting to know how many existing landlord's sell up and get out of the business in Wales.

 

[Carryon Regardless]

Truth is Melboy we that are invested in Wales can only know a limited amount of what the changes will be.

As yet I haven't seen a new style 'Occupation Contract' to assess it. Like you I can't imagine it is going to be designed to my advantage.

From 15th July we, in Wales, must serve a 6 months repossession notice. I still 'believe' my loverly tenants may serve 1 month.

Rent increases shall be more closely controlled.

I have served on 1 tenancy, while it is still 2 months. There is a window from 24th March (end of Welsh covid legislation) and the July to do this. Thing is I was reading last month covid legislation ceases 24th March and with it the 6 month protection afforded tenants, so I served on the 24th. Then it struck me that it may have stated after the 24th. All references to this, even Shelter's own site info, have disappeared. If I were paranoid I might conclude that as an English capitalist that I am under attack.

The possible 200% surcharge to us 2nd property owners is to become chargeable from April 2023. Each local authority has power to charge up to that max. So far I don't have a clue what Denbighshire 'will' charge me, for each property. How can anyone design a business like this?

I cannot charge my tenants anything above rents w/o threat of a hefty fine and the removal of the S21 possibility until refunded. So I'm now working with the tenants I've served on to remove their unsightly outside cr*p for them, to improve my sale chances.

I have one other sale going through right now.

HB reduced my revenues at the flats this month. No warning. I sat for an hour on hold, trying to find out what the issue is. I gave up. After all this is paid on behalf of the tenants and essentially nowt to do with me.

Today I write to all tenants at the flats warning them that they are falling into arrears, with a view to serving the S21's pre tenancy period end (last day each month).

Offering the flats for sale to any local investor feels favourite right now.

It is no longer my business, I am merely an agent for local Gov't's. The risk to reward ratio, although not yet determinable, feels to have become too great.

F' knows where my  / our pension will be coming from as I walk away from what was about £32k net profits.

 

 

 

[Richlist]

I sympathise.

As I've said many times, I love Wales, would like to live there, it's a great place, has everything I need, but the devolved Gov' have ensured they have discouraged & disincentivised me at every opportunity.

Whilst admittedly my wish to buy Welsh property would further restrict local home ownership.....you would have thought that my money, my ability to employ local workers and businesses & to offer good private sector accomodation might tempt them to take a different approach.

But alas.....I now see Wales as just a small piece of the UK, with a short sighted, inward looking Labour controlled Government who will attract only tourists.

[Carryon Regardless]

Not surprising RL but my thinking is fairly similar.

On the tourist side of things though. The WRA shall deter 2nd property ownership, that is tourism often with a view to retiring to said property later.

In the mean time often these properties are holiday lets, that will surely reduce.

Tourism is seasonal but still brings revenue to Wales. Lost revenue must result in many of the Welsh being less able to be mortgage worthy. This may be a hand in hand result as some may be able to afford the fast reducing (value) properties that come available.

Meanwhile less revenue to Wales will result in less council tax collected (and income tax also but that'll be an argument with the treasury). So areas that are traditionally depressed become more so. Not only do the councils have less finance to develop these areas for better, but there is to be an increased unemployment that will cost them more, both financially and socially.

As a kid we used to go to Rhyl for the pleasure beach, even as young adults. Nowadays you are lucky to escape life intact, and I don't exaggerate.

I'm glad that not so many read these pages as I want to sell to them.

 

[Carryon Regardless]

Just a bit more belly ache on the subject.

As I often do on those nights when sleep 'aint coming easily I'm trawling the net for info. Looking for an actual Welsh Occupation Contract that we landlords shall be forced to use from July 15th for new tenancies, with 6 months grace for existing tenancies.

I have found one piece

https://blog.simply-docs.co.uk/2022/02/23/occupation-contracts-the-new-form-of-tenancy-agreement-under-the-renting-homes-wales-act-2016/#:~:text=Occupation Contracts – The New Form,letting residential property in Wales.

So the last line informs that with 3 months to go that Wales will produce more guidance that we must operate under from July. I guess it's taken from the Gov.wales site that says a little more, but still doesn't suggest where I might stand with tenants that take animals or keep unroadworthy vehicles at the property.

Really doesn't this point to how inept the Welsh government are at being a government?

 

[Melboy]

A first read would suggest nothing much changes apart from 6 months notice to be given. I guess if a landlord has good grounds for eviction and has to go to court it will still be same old  Court obstruction of common sense and everything favouring the tenant rather than the landlord.

[Carryon Regardless]

The concern is what I may include that doesn't conflict with the 'supplementary terms'.

I see no 'guidance' on the notice period required of a tenant.

While there is thought to rent arrears and antisocial behaviour the terms i include that prohibit a tenant making decoration changes, or worse, and even changing locks may or may not be 'allowed'.

I wonder how much will be left vague for a judge to deliberate on in the event. 

Of course for any landlord, the thought that soon into a tenancy you learn how undesirable the tenant is but they will be in place for a minimum of 12 months is serious. After 12 months we may then go forward with the court application, to then wait for court dates and hope there isn't an issue with the notice and for time period to be reset.

[Richlist]

In my experience the answer is to always manoeuvre yourself into a position of strength/ ensuring that you hold the upper hand.

I remember many years ago I asked my employer for a small change to my employment contract. I had given the matter a lot of thought, spent time ensuring the change would result in not just an advantage for me but also that there were benefits for the Company. All the fine details had been carefully planed.  I  arranged to meet senior people in the organisation, presented my proposal, laid out the advantages and was met by a negative response. I described how dedicated I was to the success of the Company by reminding them that I had chosen to let nearly all of my properties to some of their best engineers. My proposal was approved.

[Melboy]

More Doom and Gloom from Wales.

Family facing eviction from their home of 10 years refuse to leave (msn.com)

The interesting paragraph in the article is:

"Sarah Evans, general manager at the estate agent, said: "Unfortunately, this is not an isolated case. The increase in landlord taxation as well as regulations, such as the introduction of Rent Smart Wales and the Renting Homes Act has meant that renting is simply not viable any longer for some landlords".

 

This is what happens when Labour Governments meddle in the private housing rental sector. They just can't leave it alone can they.  Watch out COR they are coming for you. 😃

[Carryon Regardless]

5 hours ago, Melboy said:

Watch out COR they are coming for you. 😃

Thanks for the warning Mel, but it would have been better 2 years ago.

But, er, us English in England have it coming our way. I don't even think we are collateral damage, more like targets.

[Melboy]

...........and to think that I nearly bought a holiday home in Wales a few years back but the seller couldn't make up their mind on the selling price. I love going on holiday to Wales as well. Tenby area and Pembrokeshire. 

Must be a DNA hang-over from my Welsh ancestry   😃

https://www.dailymail.co.uk/news/article-11495289/English-second-home-owners-pay-250-CENT-council-tax-bid-provide-homes-Welsh-locals.html

[jonnwarne]

Hi, thanks for letting us know about it, these information are really awesome. 

[Melboy]

I have seen quite a few adverts from landlords who are clearly selling up and getting out of Wales due to the latest Welsh labour government dislike of private landlords.  I thought this latest one I spotted was quite a novel way of selling up.  This landlord also owns a 4 bed house which is also being disposed of.

https://www.ebay.co.uk/itm/354498632866?hash=item5289c3dca2:g:~M0AAOSwf0hjtr1f

[Carryon Regardless]

Cool way to go that man.

I've considered these sort of things, but there are some issues I see.

There needs be no outstanding finance.

It is a style of mortgage surely, but more complicated.

If a tenant / buyer defaults how complicated would it be to recover the property from them. I guess it isn't as simple (and it isn't simple any longer anyway) to hoof 'em. Would this become a complex repossession from a part owner?

Could there be claims that as tenant the deposit amount is illegal.

Who carries the individual responsibilities for the actual property, repairs etc.

The seller would need to act as leaseholder for the whole to protect his interests, until the whole has been disposed of.

My feel is that any court actions would be thwarted by Shelter by claiming a tenancy is in place, and then that any recovery would need to follow a repossession from an owner when that alternative suits. I can imagine who would suffer the legal costs.

Good luck to the guy, but there are too many sticking their oar in to what could be an attractive and mutually advantageous proposition.

Even if the guy 'aint English, he is a capitalist in the socialist arena.

 

[Melboy]

..........my thought was just to buy the whole lot off of him in one go rather than just mess about with what he is planning and proposing to do. I have to admit I do like the look and layout of the flats but of course it's in Wales.  😀

[Carryon Regardless]

Wales and Scotland are doing some nasty things to the capitalist LL. But a worthy consideration is what England might do, additional to their ongoing attacks, over the next couple of years.

I view Westminster monitor the devolved local councils actions and amend where considered appropriate, by them.

Extended repossession periods, and costs to attempt repossession.

Restricted charging for many things, so many restrictions there already.

Increased licencing of LL's, and costs for such including training course.

Lost control over tenant actions / activities, to include 'guests' animals, children, decoration.

We are already aware of the loss of possibility to repossess for our non compliance of many aspects.

Our risk of being required to repay rents (12 months worth is the oft penalty) for failings.

Shall we be required to provide EV charging points?

Shall we find ourselves increasingly liable for Council Tax sur charges / premium, or similar?

 

Unknown to many, but Wales choose to re classify standard houses as HMO if more than 4 persons lived there. The redesign to meet the standard was, in my limited experience, impossible. The application would have been expensive, the fines of course scary.

What should we expect in England going forward?

 

[Richlist]

6 hours ago, Carryon Regardless said:

 

What should we expect in England going forward?

 

I think the answer to that is very straightforward...........we can expect as many Gov' initiated changes as will:-

Improve, simplify & reinforce a tenancy in a tenants favour in order to capture their vote. At the same time the Gov' are aware of the risk of alienating landlords to the point where they choose to exit the industry resulting in an increasing shortage of affordable housing.

 

 

[Carryon Regardless]

Maybe so RL.

But we aren't the only one's in the sights for carrying increased responsibility, while paying more for that privilege.

The long suffering effects of H&S might be seen as demonstration.

More recently we are all caused to pay toward the green initiatives. IC fuel seeing a 12p additional loading come march.

Is this a design of squeezing at all ends to cause greater personal worries, and so less unified rebellion?

We recognised a while back that the country is skint. We were all destined to pay more toward sustainability. This pain is, most likely not only, nationwide. If we were suffering more than most we might gain the sympathy needed for lesser penalty.

[Richlist]

The Gov' have a lot of problems to resolve. They don't have any 'spare' money, only the taxes we pay and at the moment we are already spending more than we collect, so they have to borrow. The result is that national debt continues to rise. It's only right that any costs that can be clawed back, are recovered.  All of that is a given and generally accepted by all political parties.

Therefore, what's up for debate is who pays, what, how and when. There are always going to be winners and loosers and its unrealistic to assume that everybody will be happy whatever route is chosen. As individuals we should all position ourselves to ride the punches and take advantage of any opportunities.

One could argue that those people who complain because they find themselves disadvantaged do so as a result of being in the wrong place at the wrong time.

[Carryon Regardless]

54 minutes ago, Richlist said:

One could argue that those people who complain because they find themselves disadvantaged do so as a result of being in the wrong place at the wrong time.

There are a lot of places in the UK that could be seen as the wrong places. For many there isn't the financial headroom to place themselves, it is more a matter of prioritising limited resources.