Occupation contracts and contract-holders: the Welsh vocabulary

· 7 min read

On 1 December 2022 the Renting Homes (Wales) Act 2016 came into force and replaced the entire vocabulary of renting in Wales. Not a reform of tenancies — a replacement of them.

English landlords with Welsh property routinely use the wrong words, and the words are not cosmetic: they carry different rules.

The translation

EnglandWales
Tenancy / licenceOccupation contract
TenantContract-holder
Assured shorthold tenancyStandard contract
Social / assured tenancySecure contract
Tenancy agreementWritten statement

The change is not only terminological. Licences became contracts. Arrangements that in England would be licences rather than tenancies — lodgers in some circumstances, supported accommodation — are occupation contracts in Wales, with the protections that carries.

The two contract types

Standard contract

The default for private landlords. Roughly where an AST sat, but with the Welsh rules on notice, fitness and the written statement attached.

Secure contract

The default for community landlords — councils and registered social landlords. Greater security of tenure. A private landlord will rarely grant one, but may inherit one on acquiring a property.

Everything converted, automatically

Tenancies existing on 1 December 2022 converted to occupation contracts on that date. Landlords did not opt in and could not opt out. If you have held a Welsh property since before December 2022, your tenant became a contract-holder whether or not anybody told you.

Converted contracts carried a deadline to issue a written statement of the new terms — see the written statement in Wales, which is also where the cost of missing it sits.

Joint contract-holders, and the change that matters

Wales allows a joint contract-holder to be added or removed without ending the contract. In England a change of sharers generally means a surrender and a new tenancy, with a fresh deposit, fresh prescribed information and a fresh start on everything.

For a shared house this is a genuine simplification and it is regularly missed by landlords applying English habits.

Why the vocabulary is worth learning properly

Because the documents have to use it. A written statement that calls the occupier a "tenant" and the arrangement a "tenancy" is describing a legal relationship that does not exist in Wales, and it will not contain the terms the Act requires — which are set out by reference to occupation contracts, not tenancies.

Serving an English AST on a Welsh property is not a stylistic error. It is a document that fails to do the job the statute requires of it.

Check what your document actually says. The tenancy agreement checker reads it against current legislation and cites the Act and section for every finding.

Information tool, not legal advice.

Common questions

What is an occupation contract?

The Welsh replacement for a tenancy or licence, under the Renting Homes (Wales) Act 2016, in force since 1 December 2022. The occupier is a contract-holder rather than a tenant. Private landlords generally grant standard contracts; community landlords grant secure contracts.

Did my existing Welsh tenancy convert automatically?

Yes. Tenancies existing on 1 December 2022 converted to occupation contracts on that date. Landlords did not opt in and could not opt out, and converted contracts carried a deadline to issue a written statement of the new terms.

Can I add a joint contract-holder without ending the contract?

Yes, and this is a real divergence from England. Wales allows a joint contract-holder to be added or removed without ending the occupation contract. In England a change of sharers generally means a surrender and a new tenancy, with a fresh deposit and fresh prescribed information.

Can I use an English AST for a Welsh property?

No. An AST describes a legal relationship that does not exist in Wales, and it will not contain the terms the Renting Homes (Wales) Act requires, because those are defined by reference to occupation contracts. It is a document that fails to do what the statute requires.

Sources

Figures about our own council records are computed when this page is built, so they cannot drift from the database. Information tool, not legal advice.

Read next

Section 173 notices: Wales kept a no-fault route7 min readThe written statement in Wales: 14 days, and what happens if you miss it6 min readEngland vs Wales: the landlord law divergence map10 min readPeriodic tenancies by default: what happened to fixed terms6 min read

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