The Welsh government has confirmed that plans to limit no-fault evictions in Wales won’t form part of its first Renters Bill, with reforms instead part of a second piece of legislation later in the current Senedd term.

Housing Minister Sian Gwenllian (pictured) told MSs that the initial Bill would focus on tackling poor landlords, strengthening tenant protections and requiring rental data to be shared, with the evidence gathered used to inform subsequent changes to possession rules.

“The first renters Bill will tackle poor landlords, will strengthen protection for tenants, and make it a requirement to share data related to renting,” she explained. “This will then lay firm foundations for a second renters Bill later on in this government’s term, and that will seek to deal with cases of no-fault evictions, in order to limit them. And the second Bill will then be fed by the evidence that will have come through in the first Bill.”

Allows

Wales currently still allows no-fault possession under section 173 of the Renting Homes (Wales) Act, with a six-month notice period. The government has previously considered two main options: removing Section 173 and replacing it with specified possession grounds or retaining it but extending the notice period and restricting when it can be used.

Agents and landlords have warned the government to exercise caution when making any changes.

Unlike England, Wales has no mandatory grounds covering a landlord’s changing circumstances, with no ground to sell with vacant possession, move back in, or for a lender to repossess, explains the NRLA. It says if section 173 is scrapped without wider reform, landlords – and lenders – would, for the most part, be unable to regain their properties.

Effects

It has also flagged the knock-on effects of an increase in fault-based claims, which could affect tenants’ access to social housing, and also points out that many landlords will need vacant possession to carry out EPC upgrades, something particularly important in the context of the new MEES standards.

“If the Welsh government does press ahead and remove section 173, the introduction of new mandatory grounds for possession will be essential,” it adds.

Propertymark agrees that any removal of Section 173 must be accompanied by stronger and workable mandatory and discretionary possession grounds, and believes the Welsh government must also consider court capacity and the time taken to regain possession.

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