Is your rental property fit for human habitation?

Amongst the numerous changes introduced by the Renting Homes (Wales) Act 2016 (“RHWA”) when it came into force on 1 December 2022, was the inclusion of a term in all periodic or short-term (under 7 years) fixed Standard Occupation Contracts, requiring landlords to ensure the dwelling is fit for human habitation.

The fitness for human habitation obligation is separate and in addition to the Landlord’s obligation to repair and has been the cause of some confusion and concern for landlords of Welsh properties.

The Renting Homes (Fitness for Human Habitation) (Wales) Regulations 2022 (“the Regulations”) sets out factors that may indicate that a property is unfit for human habitation and prescribes some circumstances where a property is automatically deemed unfit.

The Regulations include strict requirements, including inter alia requirements in relation to smoke and carbon monoxide alarms, as well as electrical safety. These apply to converted Occupation Contracts (most tenancies that existed prior to 1 December 2022 and continued past that date), as well as new Occupation Contracts.

A failure to meet the requirements means that a property is deemed to be unfit for human habitation during any period of non-compliance.

The Regulations also include a list of matters and circumstances that may indicate that a property is unfit for human habitation. This list contains 29 such circumstances, including some that may seem quite trivial at first sight. If you have doubts, you should seek legal advice.

What are the consequences?

If a property is unfit for human habitation, the Contract-Holder (tenant) could report the Landlord to the local authority, who have statutory powers to investigate and require rectification works. The Contract-Holder might also make a claim via the Court for compensation and/or an order requiring remedial work to be carried out.

Unlike in England, a permitted occupier who suffers a loss, injury or damage to property as a result of the property being unfit for human habitation can make a claim for compensation against the Landlord under the Occupation Contract (rather than needing to find some other cause of action, such as negligence).

Furthermore, periodic and (short) fixed-term Standard Occupation Contracts will often contain a term stating that the Contract-Holder is not required to pay rent in respect of any period during which the dwelling is unfit for human habitation.

Crucially, in addition to the above, where a property is deemed unfit for human habitation, a Landlord’s ability to evict Contract-Holders can be seriously impacted.

It is recommended that Contract-Holders seek legal advice before bringing a claim or withholding rent due to concerns over fitness for human habitation. It is recommended that Landlords seek formal legal advice if they have any concerns over their rental property’s fitness for human habitation, or when seeking to evict a Contract-Holder.

If you have any queries about this complex area of law please contact our Property Litigation team at 03333 208644 or email hello@jcpsolicitors.co.uk