Landlord Possession (Existing Tenancies That Are Converted)

This page looks at obtaining possession after an existing tenancy is converted under Renting Homes (Wales) Act.

Converted contracts

From the start of the Act, the following tenancies (not an exhaustive list) will be converted to occupation contracts at the stroke of midnight:

  • Assured shorthold
  • Resident landlord (where a tenant occupies a dwelling in the same building as a landlord, e.g. converted building with flats and the tenant lives in one flat and the landlord lives in another in the same building – not a lodger, though)
  • Rents over £100k per annum
  • Rents of £250 per annum or under (but not zero rent)
  • Tenant not occupying as principal home (where the tenant is on a contractual tenancy because they have a primary residence elsewhere, perhaps due to work)
  • An assured tenancy (not shorthold) is converted, but the no-reason notices (section 173, 186, and break clause notices) are unavailable.

Fixed-term standard contract

Where immediately before the start of the Act, the tenancy is in the fixed term, it will become a fixed-term standard contract. This includes an assured shorthold tenancy.

No reason notice during the fixed term

A similar provision to section 21(1)(b) notices is imported, which allows the service of notice during the fixed term where no reason is needed. This provision applies to converted contracts and does not apply to any new occupation contracts granted on or after the start of the Act.

Before_ or on the last day of the term for which the contract was made_, the landlord may give the contract-holder notice that they must give up possession of the dwelling on a date specified in the notice (para 25B(2) Sch. 12).

The prescribed form "RHW38" is the form for this purpose.

The specified date in the notice must:

  • be after six months of the occupation date of the existing tenancy. The occupation date refers back to any original tenancy if the latest is a renewal (para. 25B(3)),
  • not before the last day of the term, and
  • must be at least two months from the notice to the contract-holder.

After the notice has been given, the landlord may, on that ground, make a possession claim but not before the end of the fixed-term standard contract (paras 25(B)(6) & (7)).

Note: it would seem from this wording that the landlord can make a possession claim before the expiry of the notice in some cases. 

Suppose the notice is given one month before the end of a 12-month fixed term. In that case, the landlord may make the possession claim from the day after the fixed term ends because the reference to starting the claim is to the end of the fixed term and not to the specified date in the notice. 

However, a landlord should be cautious about starting a claim too early. Court rules require a cause of action, and if the claim is made before the expiry of the notice, there may be no cause of action as the landlord doesn't know until expiry if the contract-holder will vacate.

Paragraph 25B applies to any fixed-term standard contract that was a tenancy or licence for a fixed term before the appointed day and is not within Schedule 9B. There is no requirement for the converted contract to have been an AST; therefore, this applies to all converted fixed-term contracts.

Break clause

Where the converted fixed-term contract includes a landlords break clause, two months' notice can be given by sections 194 – 196 of the Act (para. 25D(b) Sch. 12), but it may not be delivered until after the first four months of occupation (para. 25D(2)(c)).

The break clause would have to follow the terms of the break clause, for example, longer than two months' notice if required and expiry on specific dates within the clause.

Periodic

If the assured shorthold tenancy was fixed-term immediately before conversion and then becomes periodic (by way of section 184(2), which is similar to a statutory periodic tenancy), the tenancy will become a periodic standard contract. In that case, the length of notice is increased to six months from the point the contract becomes periodic (para. 32(8), Sch. 12).

If an assured shorthold tenancy is periodic immediately before the Act, it will convert to a periodic standard contract.

No reason notice (periodic)

Section 173 of the Act (get used to that term because that's the primary replacement term for section 21) allows a landlord to give a no-reason notice during a periodic contract.

A converted periodic assured shorthold tenancy that was periodic when converted retains two months' notice for the first six months and then, from 1 June 2023, reverts to six months' notice. It cannot be served until after four months from the first occupation (para 25A, sch. 12). The four months is to the original tenancy when they first moved into the property, and renewals are ignored.

The notice is in a prescribed form and differs depending on the date being given as follows:

  • Where the notice is given between 1 December 2022 and 31 May 2023, the required form is "RHW17" (Notice of termination - Periodic Standard Contract with two-month minimum notice period).
  • Where the notice is given on or after 1 June 2023, form RHW16 is required (Notice of termination - Periodic Standard Contract with a six-month minimum notice period).

Important: the two-month notice before 1 June 2023 above only applies to a periodic standard contract that was a periodic assured shorthold tenancy immediately before the start of the Act (para 25A(1), Sch. 12). A converted contract that was not an AST before the appointed day (for example, a contractual tenancy) will immediately revert to six months' notice like new contracts.

Prohibition on serving notice for failure to comply with statutory obligations

The no reason notice cannot be served during the fixed term, periodic or with a break clause at a time when a statutory duty has not been complied with, including:

  • Failure to provide a written statement;
  • Six-month restriction following failure to provide a written statement within the period specified.
  • Failure to provide landlord information;
  • Failure to provide a valid energy performance certificate;
  • Breach of security and deposit requirements;
  • Prohibited payments and holding deposits under the Renting Homes (Fees etc.) (Wales) Act 2019;
  • Failure to ensure that working smoke alarms and carbon monoxide alarms are installed;
  • Failure to supply electrical condition report etc.;
  • Failure to provide gas safety report to contract-holder;
  • Rent Smart Wales registration and licensing requirements;
  • Unlicensed HMO.

Rent arrears, anti-social behaviour or other breaches

Most of the rules applicable to new occupation contracts apply to a converted contract concerning rent arrears, anti-social behaviour or other breaches.

The landlord must serve a notice for serious rent arrears (two months or more). Form "RHW20" is the form for this purpose. No date is required on the form, but the landlord cannot start a possession claim until after 14 days from the notice.

For a breach of contract (including anti-social behaviour or arrears of less than two months), a notice is required (prescribed form "RHW23"). There's no expiry date required in this notice, but the landlord cannot make a possession claim until the contract-holder has been given the notice (anti-social behaviour) or after one month (breach of another term).

This is a simplified overview of these notices available. Please see the "Landlord Notice (Rent Arrears and Other Breach)" section.

Other imported grounds (fixed-term and periodic)

Grounds 1, 2, 5 and 7 of Schedule 2 Housing Act 1988 are available for a converted contract that was an assured shorthold (or assured) tenancy immediately before conversion to an occupation contract (paras 28 and 29, Sch. 12).

Notices that have been served before commencement

The Renting Homes (Wales) Act 2016 (Saving and Transitional Provisions) Regulations 2022 provides for existing notices served under an assured shorthold tenancy before the Act commences.

Where a notice has been served whilst the tenancy was assured shorthold before commencement and the assured shorthold is converted, the following applies.

Section 21 notice

Section 21, served before commencement, is valid after the start of the Act. 

Possession following the expiry of the notice follows the same procedure as if the tenancy were assured shorthold, including accelerated possession or the standard procedure.

However, the notice only has a shelf life of 2 months from the commencement of the Act or two months from the expiry of the notice, whichever is later (reg.3(5)). It would be best if you commenced proceedings before this time; otherwise, a notice under the Act would need to be served.

Section 8 notice

Section 8, served before commencement, is valid after the start of the Act.

Possession following the expiry of the notice follows the same procedure as if the tenancy were assured shorthold, including possession claim online or the standard procedure.

However, once the Act commences, the notice only has a shelf life of 12 months from service or six months from commencement, whichever comes first (reg.3(2)). It would be best if you commenced proceedings before this time; otherwise, a notice under the Act would need to be served.