Law Commission calls for shakeup of housing association tenancies in Wales

The relationship that housing associations in Wales have with their tenants should be brought into line with the arrangements for local authorities, the Law Commission has recommended.

In a report, Renting homes in Wales, the Government’s legal advisory body called for many existing tenancy types to be replaced with two forms of contract: a secure contract for social housing and a standard contract for the private sector.

In relation to social housing, it said the move would simplify and streamline the relevant framework. The reforms would involve the replacement of housing associations’ existing tenancy agreements with secure contracts.

The relationship housing associations have with their tenants in Wales is currently governed by the laws that apply to the private sector.

On the proposed switch, the Law Commission said: “To protect the status of existing tenants, the new secure contracts would not permit housing association landlords to evict occupiers automatically if they fall into serious arrears. Instead, they would need to go through the courts, as local authorities must.”

Commenting overall on its reforms, the Law Commission said: “The existing law is complex and inflexible. There are many different types of tenancy, and local authorities, social landlords, such as housing associations, and private landlords all have different forms of agreement with their tenants.”

It added that the reforms were based on recommendations it made in 2006 for both England and Wales. Those proposals were rejected for England but accepted by the Welsh Government.

The Commission’s latest report, which has the backing of the Welsh Government, updated the recommendations for implementation in Wales.

If the proposals are implemented, Welsh Ministers would issue uniform contracts that setting out the rights and responsibilities of landlords and tenants, and the circumstances under which either of them can bring the contract to an end.

The report is the first that the Law Commission has produced relating only to the law in Wales.

Frances Patterson QC, the Law Commissioner leading on the project, said: “This report shows the Law Commission’s commitment to law reform in Wales. Our recommendations preserve, as far as has been possible, the existing balance of rights and responsibilities between landlords and tenants.

“But we know that many housing disputes come about because the law is obscure and hard to understand. Clearly expressed and fair contracts will contribute to the legal security of tenants, as well as enabling both landlords and occupiers to understand the expectations that a rental contract places on them and reducing the need for costly litigation to resolve disputes.”

The report is expected to inform a white paper to be issued for consultation shortly by the Welsh Government. Legislation in the National Assembly would then follow.

A copy of the report can be downloaded here.