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Welsh landlords face June deadline to update occupation contracts

Landlords in Wales are being warned they have less than a month to update occupation contracts ahead of new anti-discrimination laws coming into force on 1 June 2026.

The changes, introduced through the UK Government’s Renters’ Rights Act 2025 and incorporated into Welsh housing law, will make it unlawful for landlords and letting agents to discriminate against prospective or existing contract-holders because they have children or receive benefits.

Under the new rules, landlords will no longer be permitted to refuse viewings, withhold information about a property, or decline to grant an occupation contract solely because an applicant receives welfare benefits or has children. The reforms also prohibit restrictions on children living in or visiting a rented home, except where a landlord can demonstrate a legitimate and proportionate reason.

Contracts must be updated

According to Rent Smart Wales, landlords must officially update existing occupation contracts to include new legally required terms. It is not sufficient to email tenants informally or assume the changes apply automatically.

For existing contracts in Wales, landlords must do one of the following by 14 June 2026:

• provide an updated written statement of the occupation contract including the new terms, or

• serve a written notice of variation setting out the changes and where they sit within the existing contract.

The new fundamental terms are:

1. Right for children to live at or visit the property

Landlords cannot ban or unreasonably restrict tenants from having children live in or visit the property, unless there is a valid and proportionate reason.

2. Right to claim benefits

Landlords must not prohibit tenants from claiming benefits. In practice, this removes “No DSS” type restrictions in most cases.

The formal wording of the new clauses includes:

• “The landlord must not prohibit you from being a benefits claimant…”

• “You may permit a person under 18 to live in or visit the dwelling…”

These changes apply to most standard occupation contracts in Wales from 1 June 2026. Any new contracts issued from that date must already include the updated terms.

Failure to comply could lead to financial penalties and, in some circumstances, criminal proceedings.

The Welsh Government has already published guidance for landlords alongside template wording for notices of variation. Updated model written statements are due to be released from 1 June.

‘No DSS’ policies effectively banned

The measures formalise the end of so-called “No DSS” and “No Children” blanket policies in Wales.

Industry bodies say landlords will still be able to carry out affordability checks and reference prospective tenants, but decisions must be based on financial suitability rather than a person’s family circumstances or reliance on benefits.

Sean Hooker, Head of Redress, Property Redress says:

“These changes represent a significant shift in how landlords and agents approach tenant selection in Wales. Blanket bans on applicants receiving benefits or families with children are no longer acceptable and could expose landlords to complaints, legal action and reputational damage. Landlords should now focus on carrying out fair, evidence-based affordability assessments and ensure all advertising, referencing procedures and occupation contracts comply with the new rules before the June deadline. An additional caution for landlords: if you are relying on your agent to make the amendments, then double check they are responsible under your agreement and aware of the rules. Do not leave it to chance as it is the landlord who is ultimately responsible and may have to pay compensation, including rent repayment claims that can arise after the deadline.”

Wales already ahead of England

While much of the Renters’ Rights Act applies only in England, Wales had already introduced many similar reforms through the Renting Homes (Wales) Act 2016, which replaced assured shorthold tenancies with occupation contracts in December 2022.

As a result, several headline measures affecting England - including the abolition of Section 21 evictions and the shift away from fixed-term ASTs - are already established in Wales under different legislation.

However, some provisions in England will not apply in Wales. These include limits on rent increases, restrictions on rent in advance, and rules preventing landlords from accepting offers above the advertised rent.

Rent Smart Wales has urged landlords and agents to familiarise themselves with the changes immediately to make sure contracts and procedures are updated before the June deadline.

Tags:

Wales
Renters' Rights Act

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