10 reasons why we’re not using Welsh Gov’s model occupation contract - #3: Tenants empowered by “unfit property” term
There are many reasons for which a property can be deemed "unfit for human habitation" according to The Renting Homes (Fitness for Human Habitation) (Wales) Regulations 2022 (FFHH Regs, for short).
Take a look at our FFHH Regs page for more information, but in short, there are 29 ‘matters and circumstances’, plus the requirements for carbon monoxide alarms, smoke alarms and Electrical Installation Condition Reports (EICRs).
The second term within Welsh Gov’s model Written Statement of Occupation Contract (the new phrase for "tenancy agreement") – which makes it highly prominent for anyone who may be prone to losing concentration the more they read – states:
“Periods when the dwelling is unfit for human habitation (S):
You are not required to pay the rent in respect of any day or part day during which the dwelling is unfit for human habitation.”
However, it’s a Supplementary (S) term, meaning it can be amended or omitted with agreement from the contract-holder (formerly known as a tenant). Amendments or omissions to Supplementary terms can put the landlord in a better position, as long as they’re not at odds with Fundamental (F or F+) terms.
We thought long and hard about how we deal with this clause, particularly because amendments to F, F+ or S terms need to be shown. So even if we were omit this term from the Written Statement, it would need to be struck through rather than removed completely. This means a prospective contract-holder would still know what it did say, making it highly likely they (or their parent) would query it. After all, why should rent be payable when a property is unfit for human habitation? It shouldn’t, but a lot more goes into deeming whether a property is unfit for human habitation than Welsh Gov’s model term would suggest. In its current form, we believe it empowers contract-holders to stop paying rent when they believe the property is “unfit for human habitation”, rather than going through the correct channels to deem it so.
The changes we’ve made to the term
We’re unable to share the exact wording with you as it’s an exclusive benefit to CPS Homes clients, but in our robust Written Statement we’ve expanded on the term to include the process that will need to be followed before a property is deemed unfit for human habitation, whilst still being fair to contract-holders. It gives our clients an extra layer of much-needed protection and demonstrates that we’ve got their best interests at heart.
We respect the legislation and all that comes with it, but there are changes that can and should be made to Welsh Government’s model Written Statements in order to strengthen a landlord’s position, all whilst staying within the allowances of the law.
Let CPS Homes help
We're experts on The Renting Homes (Wales) 2016 Act and are helping prepare landlords for the changes. By instructing us to manage your property, we will...
- Work with you to put efficient processes in place well in advance of key dates for new legislation and regulations, ensuring you and your properties are compliant, safe and legal.
- Save you the cost of a Rent Smart Wales landlord licence and the hassle of ongoing training.
- Maximise your rental income by ensuring the property is always achieving its full potential.
- Provide you with your own representative within our Lettings and Accounts departments.
- Produce a FREE professional walkthrough video tour and photography as part of our standard marketing package.
- Place you on our VIP Investor list where you'll get priority access to pre-market investment properties before they're listed online.
- Provide you with peace of mind via our Client Money Protection (CMP) policy, professional indemnity insurance, and redress scheme membership.
To discuss CPS Homes taking over management of your property, contact our Senior Property Investment & Market Advisor, Rhys Owen, today via rhys.owen@cpshomes.co.uk or 02920 668585.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
