Q. I am looking to rent out a property  in Wales but I am confused by the references to ‘occupation contracts’ and ‘contract holders’. Are there no longer tenancies in Wales?

A. Indeed, there are. But whereas in England, tenancies and residential licenses are treated differently under the law, in Wales, they are treated the same.  

The legislation deals with this by putting all the rules into the contract – as both tenancies and licenses have contracts. This is why we have the new terminology ‘occupation contracts’ and ‘contract holders’. As they refer to both tenancies and licenses.

Q. We have a tenancy agreement that we have developed over many years, and which suits our needs and properties. Can we continue to use this now that the new Welsh legislation has come into force?

A. I am afraid not, although you may still be able to use some of the clauses from your old agreement.

There are now a large number of prescribed terms which need to go into all Welsh occupation contracts. They can be amended in a limited way, but you need to be careful about this as if the amendment does not comply with the amendment rules or has the effect of creating an ‘unfair’ term (per the rules in the Consumer Rights Act 2015), then you may find you are subject to penalties.