Explanatory Notes

Renting Homes (Wales) Act 2016

1

18 January 2016

Commentary on Sections

Part 2 - Occupation contracts and Landlords

Chapter 1 - Occupation Contracts
Schedule 2 - Exceptions to section 7
Part 3 - Tenancies and licences that are never occupation contracts

41.As with Part 2, this Part addresses certain tenancies and licences which are within section 7, and which would therefore be occupation contracts were it not for this Part. If a tenancy or licence is mentioned in paragraph 7, despite the fact that it is within section 7, it can never be an occupation contract.

Paragraph 7

42.A tenancy or licence is not an occupation contract if the tenant or licensee is under 18 years of age (or, where there is more than one tenant or licensees, all of them are under 18).

43.This paragraph also excludes various other tenancies from being occupation contracts. The following are excluded from being occupation contracts:

Paragraph 8

44.Long tenancies are excluded from being occupation contracts. This paragraph defines a long tenancy under the Act as being:

45.But a tenancy that can be terminated by notice after a death is not a long tenancy (unless it is a shared ownership tenancy - see below).

46.A shared ownership tenancy is a tenancy that relates to a dwelling owned by a registered social landlord where the tenant has purchased a percentage of the property on a leasehold basis and pays rent on the un-owned share. Further shares of the un-owned part can be purchased until potentially the remaining un-owned portion is reduced to nil.

Paragraph 10

47.Direct access accommodation is accommodation provided by a community landlord or a charity registered with the Charity Commission (under the Charities Act 2011), which is provided on a very short-term basis (24 hours or less) to people who satisfy criteria set by the landlord (which will generally require the person to have an immediate need for accommodation).