When can a landlord ask a contract holder to leave their property in Wales?
Residential property law in Wales is now largely governed by the Renting Homes (Wales) Act 2016 (‘the Act’). Since the Act came into force on 1 December 2022, most private residential tenancies in Wales have been held as standard occupation contracts. Occupation contracts can be created to grant the contract holder the right to occupy a property for either a fixed term or on a periodic basis (eg from week to week or month to month).
There are various options available for landlords looking to end a fixed-term or periodic occupation contract. The information below sets out how standard occupation contracts can be ended so that landlords can repossess their property.
Ending a fixed-term standard occupation contract
A fixed-term standard contract can be ended by the landlord in one of the following ways:
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by agreement - if the landlord and contract holder agree to end the contract, it can end by surrender
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using a landlord’s break clause
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by serving a notice under section 188 of the Act, if the contract holder is in serious rent arrears
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by serving notice under section 159 of the Act for breach of contract
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under estate management grounds
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by serving a notice to the contract holder under section 186 of the Act, if the occupation contract is of a certain type
Each of these options has certain rules attached that landlords must follow to validly evict a contract holder. Landlords should also be aware that, at the end of an occupation contract’s fixed term, a contract holder isn’t automatically required to leave the property. The contract will automatically convert into a new periodic occupation contract at the end of the fixed term and one of the methods set out below (for periodic occupation contracts) must be used to end the contract (if one of the above methods for ending a fixed term occupation contract has not already been started).
Landlords’ break clauses
A break clause is a term in an occupation contract that allows a party to end the contract early by following the term’s provisions. A landlord’s break clause may only be included in an occupation contract if:
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the contract is for a fixed term of 2 years or more, or
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the contract would not be an occupation contract but for the landlord’s having given notice that the contract is to be an occupation contract (eg a Lodger agreement or holiday let - for more information, read Occupation contracts in Wales)
If permitted and included in a contract, the landlord’s break clause must require that (unless an exception applies):
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the landlord gives at least 6 months’ notice that they’re ending the contract, and
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the landlord can’t use the break clause within the first 18 months of the contract
Additionally, if the landlord has breached certain statutory obligations as a landlord, they cannot use the landlord’s break clause. Such obligations include, for example, the requirement to provide a written statement of contract terms at the start of the contract and not to charge any prohibited fees.
If a contract has a valid landlord’s break clause, the landlord may serve notice in line with its provisions (eg prescribed notice periods) to end the tenancy. For more information, read Ending your tenancy early. Ask a lawyer for more information about landlord break clause exceptions.
Eviction for serious rent arrears
If the holder of a fixed-term occupation contract is in serious rent arrears, the landlord can serve notice under section 188 of the Act to evict the contract holder and claim possession of the property.
What constitutes serious rent arrears depends on the rental period (ie how often rent is paid). If rent is paid:
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weekly, fortnightly or 4-weekly, 8 weeks’ rent must be unpaid
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monthly, at least 2 months’ rent must be unpaid
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quarterly, at least one quarter’s rent must be 3 months in arrears
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yearly, at least 25% of the rent must be 3 months in arrears
The landlord must give at least 14 days’ notice of their intention to start a repossession claim. If the contract holder doesn’t give up possession of the property at the end of the notice period (and the unpaid rent is still outstanding) the landlord can seek an order for possession from the courts, which the courts should usually grant.
Notice for breach of contract
If a contract holder breaches a term of their contract (eg a restrictive covenant or term prohibiting anti-social behaviour), the landlord may be able to evict them by serving notice under section 159 of the Act. Section 159 essentially replaces the old eviction option under section 8 of the Housing Act 1988 (which is still used in England). Note that various fundamental and supplementary terms are automatically incorporated into (ie treated as part of) occupation contracts and a breach of one of these counts as a breach of contract.
If a landlord wants to claim possession for breach of contract, they must first serve notice of their intentions to the contract holder specifying the ground for the possession claim (ie breach of contract, and which term has been breached). If, after one month (or immediately if the breach of contract in question is a breach of the term disallowing anti-social behaviour and other prohibited conduct) the situation is not resolved, the landlord can make a possession claim in the courts. The courts will consider the unique situation in question and, if they consider that it’s reasonable to do so, will grant an order for possession.
Estate management grounds
A landlord can make a possession claim under section 161 of the Act based on ‘estate management grounds’. These are essentially reasons for eviction related to allowing the landlord to do something with their property (eg building work that can’t be completed while the contract holder lives in the property).
To evict a contract holder based on estate management grounds, the landlord must first serve a notice to the contract holder specifying why they are planning to repossess the property and giving them one month’s notice of the intended repossession date.
At the end of the notice period, the landlord can apply to the court for an order of possession if necessary, which the court may grant if they consider that doing so is reasonable. Sometimes the landlord must also pay the contract holder compensation for any moving expenses associated with the eviction and should ensure that alternative accommodation is available for the contract holder to move into.
Notice under section 186 of the Act
This is often the most appropriate option for landlords wanting to end a contract at or soon after the end of its fixed term - although it’s only available for occupation contracts within a certain category (set out in Schedule 9B of the Act). Section 186 allows a landlord to end applicable contracts on or after the end of the fixed term simply by giving notice (ie no fault is required on the contract holder’s part). Contracts within this category include those:
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that would not be an occupation contract but for notice given by the landlord that the contract is to be an occupation contract (eg a lodger agreement or holiday let)
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for supported accommodation
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for accommodation for asylum seekers or homeless persons
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for service accommodation (ie where certain types of employees must live as a requirement of their job)
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for, in certain situations, temporary accommodation
Eligible contracts can be ended by the landlord serving the contract holder notice under section 186, which must give at least 2 months’ notice of the contract ending. Notice should be served before or on the last day of the fixed term (ie not once it’s converted into a periodic occupation contract. At this point one of the options for ending a periodic occupation contract should be used). If the contract holder doesn’t leave by the expiry of the notice and all conditions have been followed, the landlord can apply to the courts for an order of possession that they should grant.
Ending a periodic standard occupation contract
A periodic standard occupation contract may be periodic from the outset or it may be created automatically at the end of a fixed-term occupation contract. Landlords can evict holders of periodic occupation contracts either:
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by agreement - if the landlord and contract holder agree to end the contract, it can end by surrender
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using a ‘no fault’ eviction notice
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by serving a notice under section 182 of the Act, if the contract holder is in serious rent arrears. This operates in a very similar manner to eviction for serious rent arrears for a fixed-term contract under section 188
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by serving notice under section 159 of the Act for breach of contract, in the same manner as for a fixed-term occupation contract
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under estate management grounds, in the same manner as for a fixed-term occupation contract
No fault eviction
A landlord can end a periodic occupation contract for any reason (ie even if there’s ‘no fault’ on the contract holder’s part) if they:
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give at least 6 months’ notice of the end of the contract (unless an exception applies, for example, for supported accommodation or university accommodation, in which case 2 months’ notice may be adequate)
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do not serve the notice within the first 6 months of the occupation contract (unless an exception applies, for example, if a contract would not be an occupation contract but for the notice given by the landlord that the contract is to be an occupation contract, like a lodger agreement), and
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have not breached one of the statutory obligations of a landlord (eg the requirement to provide a written statement of the occupation contract’s terms at the start of the tenancy or not to charge any prohibited fees)
If all of the above apply, the landlord can serve notice under section 173 of the Act. If the contract holder does not leave at the expiry of the notice period, the landlord can seek a court order for possession which, unless a human rights defence applies, should be granted.
Ask a lawyer if you have any questions about ending a periodic occupation contract.
What is Rent Smart Wales?
Under the Housing (Wales) Act 2014, all landlords renting properties in Wales must register with Rent Smart Wales. Rent Smart Wales is the licensing authority which processes landlord registrations and grants licences to landlords and their agents. Landlords who have not registered with Rent Smart Wales - or who do not have a valid licence - are unable to use some eviction methods. These include section 173 notices (ie no fault eviction notices) and landlords’ break clauses.
What is the eviction process?
Where appropriate, the first step should be a discussion between the landlord and the contract holder. Informing the contract holder in person or over the phone of your intentions is respectful and can facilitate a smoother, more communicative eviction process. A surrender of the occupation contract could be negotiated at this stage.
The first formal step is serving an appropriate eviction notice. This must give an appropriate notice period before the intended end of the occupation contract and must abide by the rules for the eviction option chosen.
Proof of service should be retained, either by filling out a certification of service form (N215) or by writing 'served by [name of landlord] on [date]' on the notice and keeping a copy. If the contract holder has not vacated by the end of the notice period, the landlord can apply to the court for an order of possession. Whether or not the courts will grant a possession order depends on the rules for the type of eviction notice in question. Some types of notice require the courts to grant an order if conditions are met and no exceptions apply. Others allow the courts to grant an order if they consider it reasonable to do so in the circumstances. If a notice has been served invalidly (eg because the landlord has breached a statutory obligation or an inadequate notice period was given), the courts will not grant a possession order.
A possession order tells the contract holder to leave the property by a specific date. If they do not do so, the landlord can begin the process of repossessing the property using a bailiff. For more information on the court and repossession process, read the Government’s guidance.
Ask a lawyer if you need more information on court proceedings and possession orders.
What landlord obligations affect the validity of eviction notices?
Certain types of eviction notices (ie those that specify so above, eg landlords’ break clauses or no fault eviction notices) will be invalid if the landlord has breached a landlord’s statutory obligation. Examples of such breaches include:
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the landlord or agent has not registered with Rent Smart Wales
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the landlord has not provided the contract holder with a current Energy Performance Certificate (EPC), electrical condition report or gas safety record
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the landlord has not provided the contract holder with all required information, for example, a written statement of contract terms and information about the deposit protection scheme
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failing to ensure that smoke alarms and carbon monoxide alarms are installed and functional
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a deposit has not been placed in a valid deposit protection scheme
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the landlord has charged the contract holder a prohibited fee
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the eviction is a retaliatory eviction (ie a landlord attempts to evict a contract holder to avoid their obligations to keep the property in good repair and fit for human habitation)
What about if a contract holder has abandoned the property?
It is very important to determine that the contract holder has definitely abandoned the property (eg they haven’t just gone on an extended holiday), otherwise, the landlord may be unlawfully evicting them if they repossess the property using the abandonment process. The landlord must give 4 weeks’ notice to the contract holder of the property as per section 220 of the Act. For more information on repossessing abandoned property, read Tenant abandonment.
Transitional provisions
The Renting Homes (Wales) Act 2016 came into effect on 1 December 2022. The rules above apply to new occupation contracts created after this date. Existing tenancies that were converted into occupation contracts on this date should generally also follow the rules above, but may in some instances still be able to use aspects of the old law. For instance:
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converted (ie signed before 1 December) periodic contracts can be ended using the section 173 no fault procedure with a 2-month notice period. Converted fixed-term contracts that automatically become periodic contracts at the end of their fixed term (ie after 1 December) must use the new 6-month minimum notice period for no fault eviction
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converted fixed-term contracts (ie eligible contracts that were fixed-term tenancies or licences before 1 December) that can’t be ended using section 186 of the Act can be ended by giving at least 2 months’ notice. The notice must end on or after the last day of the fixed term and must be served on or before the last day of the fixed term. It cannot be served within the first 6 months of the contract
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if section 21 proceedings (the previous no fault eviction notice system, which still applies in England) were started before 1 December, they can be continued
Secure occupation contracts
Secure occupation contracts grant contract holders stronger occupancy rights. Consequently, fewer options are available for landlords to end them. Secure occupation contracts can be ended by a landlord:
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by serving notice under section 157 of the Act for breach of contract, in the same manner as for a fixed term occupation contract
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under estate management grounds, in the same manner as for a fixed term occupation contract
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by seeking a possession order if the contract holder gives notice to end their tenancy but then doesn’t leave when they say they will
For more information on ending a secure occupation contract, Ask a lawyer.
