This month we saw a test case brought in the High Court by a group of registered social landlords in Wales who sought clarification on whether contract-holders were required to pay rent whilst a landlord was in breach of their obligation to provide them with electrical condition reports.
The Renting Homes (Wales) Act 2016 (“the Act”), which came into force on 1 December 2022, significantly changed the type of tenancy and the rules for renting a home in Wales. Assured shorthold tenancies known as “occupation contracts,” and tenants referred to as “contract holders”, imposed a requirement that all rented properties (both private and social) must be fit for human habitation. To ensure this, landlords are required to conduct regular electrical installation inspections at least every five years. Additionally, landlords must provide a copy of the valid electrical condition report within 14 days of the tenancy start date or inspection date, whichever is later.
In the recent case, the landlord commissioned and obtained the electrical condition reports but failed to physically provide copies to the contract holders by the due dates required under the Act.
The court ruled that the landlords’ failure to provide these electrical condition certificates breached the Renting Homes (Fitness for Human Habitation) (Wales) Regulations 2022. As a result, the dwellings were technically deemed unfit for human habitation, and the tenants were not required to pay rent during the period of unfitness.
This ruling impacts the Welsh housing sector, with potential for tenants to issue counterclaims to recover rent paid – varying from £1,500 to £3,000 per tenant. However, this is simply a ripple in comparison to the recent changes to the private rented sector proposed by the Renters Reform Bill which will apply to England. The reforms proposed will limit landlords in England from seeking possession on specific grounds and has the potential for creating unlimited tenancies if grounds for eviction does not arise and the tenants wish to remain. By comparison, landlords in Wales only have to wait six months before reclaiming possession and do not need a specific reason before seeking possession, effectively providing more control over their properties.
If you’re a landlord in Wales or England, and you have concerns that you have not met the requirements for fitness for human habitation, or if you require advice in relation to issues arising from the Renting Homes (Wales) Act 2016, we may be able to help. You can get in touch with our team via email, or phone us on 020 7551 7777.
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The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice upon which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. Please do contact the Bates Wells team if you require further information.