RH 21

Y Pwyllgor Cymunedau, Cydraddoldeb a Llywodraeth Leol/

Communities, Equality and Local Government Committee

Bil Rhentu Cartrefi (Cymru)/Renting Homes (Wales) Bill 
Ymateb gan: Wyn Morgan Lloyd

Response from: Wyn Morgan Lloyd

These comments have been compiled by Wyn Morgan Lloyd, a private Landlord with a portfolio of some 15 rented properties in Rhayader, Powys.  With 30 years’ experience as a private landlord.

For the last 15 years 90% of rental income has been re-invested into improving the housing stock, much of which was inherited in poor condition.

There are no new build or buy to let properties in this portfolio and tenants are mixed  in type. Ranging from elderly singles to large family units, including, more latterly migrant workers from India. 

A number of tenants are in receipt of Housing Allowance, and many more in past years.  However, following the restriction on the payment of Housing Benefit directly to Landlords, these tenants frequently fall into arrears.  Each time the tenant has been approached to establish affordable payment plans to reduce the arrears and 1 tenant has managed to repay almost £1,750.00 of arrears, once the rental payments were paid directly to the landlord.  When the offer of payment plans have been beyond the tenant, or no effort made to repay, Notices to Quit have been issued with two month notice periods,  but only when arrears have reached unmanageable levels, in some cases £2,000.00 or more.

In more recent years, properties have been wilfully damaged and left in appalling conditions due to neglect and unsanitary living by a growing number of outgoing tenants. This has led to unnecessary and expensive repair bills mounting into thousands of pounds.  This has unfortunately meant that in some years the refurbishment programme of the other properties in need of updating, has had to be abandoned in order to cover these unexpected costs.

Tenancies are issued on a monthly periodic basis and are all Assured Shorthold Tenancies, with the exception of one Assured Tenancy.  Tenants have always been very happy to have the flexibility this offers and the no-fault possession option available on periodic tenancies has never been used.  Usually if the tenant pays rent and doesn’t breach the tenancy agreement in any way they stay, a third of tenants have been in situ for 8 years or more.

Tenancy Agreements are always issued at the outset and part-time administration staff is employed to ensure that all statutory Landlord obligations are met and that tenant complaints and issues are responded to effectively.  The team are all members of the National Landlords’ Association and the lead administrator is currently undertaking the accreditation offered.  The lead administrator is also a member of the Landlord Zone forum and the Residential Landlords Association Cymru.

My comments are mostly limited to the provisions of the Bill that will affect the administration of my rental properties and therefore are concentrated around the provisions that will affect the Standard Period Occupation Contract.

As a committed and experienced Landlord, I welcome reform in the sector with the caveats I have highlighted on the following pages.

Wyn Morgan Lloyd A.C.I.O.B.

The comments below have been collated in the order used in your terms of reference.

1. General Principles.

The terminology used throughout the Bill has clearly been chosen to distinguish the new regime from the existing and with reform of this type this is a necessity.  However, the term “Occupation Contract” (OC) may be confused by some as having something to do with their employment, perhaps “Housing Contract” would be a preferable term. Similarly, the term “Contract Holder” (CH) implies that there is one main holder of the said contract and that the Landlord is in some way supplemental to the Agreement.  Surely, both parties are holding the contract in unison and the use of an alternative term for the tenant may stop any unintended inferences.

i  Part 2 – Occupation contracts and landlords.

In general the concept of a written OC is welcomed and the inclusion of the fixed Fundamental Provisions (FP’s) is sensible in all the circumstances, as are the Supplemental Provisions (SP’s) which are more likely to be subject to regulatory amendment.

The insistence of the inclusion of Key Matters will also provide clarity between the parties.

The fact that Additional Provisions/Terms (AT’s) can be included, allows for the tailoring of the OC to suit the property and the requirements of the Landlord (e.g. no smoking, or no pets, or stairwell not to be obstructed) whilst ensuring that the tenant can easily spot the AT’s within the body of the OC and decide if the property is the one for them.

ii. Part 3 – Provisions applying to all occupation contracts.

Written Statements

The obligation on Landlords to provide a written OC is welcomed, the respondent has always done so and strives to stay abreast of all statutory amendments for inclusion where necessary.

However, the interest attached to compensation appears to be excessive and as many landlords are not body corporates and neither are many residential tenants, then the use of the Late Payments of Commercial Debt rate seems excessive.  Surely, interest under s.69 County Courts Act 1984 is far more suited to this type of contract breach.  Or even a standard fine for breach of this F.P. in the region of £500.00.

Also, there is an inconsistency between s.31 and s35(6) , surely the relevant date should be 14 days for both?

Deposits and Deposit Schemes

This is currently a Landlord’s obligation and is welcomed in the Bill.  However, it is not clear if the requirement will mean registering all existing deposits with a new Welsh body/ies.  If so, the cost to those Landlords, such as the respondent, who use the insured protection option –