What Counts as a Rent Increase or No-Fault Notice and Required Notice Periods

Renting property in Wales is governed by the Renting Homes (Wales) Act 2016, which provides clear, standardised rules regarding rent increases and ending occupancy contracts.

For both landlords and tenants, understanding what constitutes a rent increase, what a no-fault eviction means, and the applicable notice periods is essential for complying with the law and avoiding disputes.

This legal framework aims to make renting in Wales fairer, more transparent, and more secure for tenants while providing clarity and certainty for landlords.

Understanding Rent Increases

Under the Renting Homes (Wales) Act 2016, a rent increase is any change that raises the rent a contract holder pays for the dwelling.

It doesn’t matter whether the increase is small or large, fixed or negotiated: if the rent goes up, it is legally a rent increase.

Landlords must follow strict rules regarding how and when they can increase rent under an occupancy contract.

Rules for Rent Increases

Landlords cannot simply raise the rent at any time without providing proper notice or obtaining a new agreement. The law sets minimum requirements to protect tenants from surprise increases.

For periodic standard occupation contracts, a landlord may only increase the rent by providing at least two months’ written notice to the contract holder.

The notice must:

• Clearly state the new rent amount.
• Specify the date on which the new rent takes effect.
• Be adequately served in writing.

This two-month minimum notice period ensures that tenants have sufficient time to prepare for the increase, budget accordingly, or discuss any concerns with the landlord.

Frequency of Rent Increases

The Renting Homes (Wales) Act 2016 also restricts the frequency of rent increases.

For periodic contracts, rent can generally only be increased once every 12 months.

This protects tenants from frequent or arbitrary increases, providing predictability for budgeting.

Rent Increases in Fixed-Term Contracts

For fixed-term standard occupation contracts, the situation is different.

Unless the contract explicitly includes a rent review clause setting out how and when rent can be increased during the fixed term, landlords generally cannot increase the rent during the fixed term period.

If the contract does include such a clause, it must:

• Be transparent and fair.
• Specify the timing and method of the increase.

If there is no clause allowing rent to rise during the fixed term, the landlord must wait until the fixed term ends before increasing the rent.

Best Practice for Landlords on Rent Increases

Even when legally permitted, landlords are encouraged to:

• Discuss proposed rent increases with tenants in advance to ensure a smooth transition.
• Provide clear, written communication.
• Ensure increases are reasonable and reflect market conditions.
• Give more than the minimum notice where possible to maintain good relationships.

These steps help prevent disputes and maintain a professional reputation.

What Is a No-Fault Notice

A no-fault notice is a notice served by a landlord to end an occupation contract without alleging any fault or breach by the tenant.

Under the Renting Homes (Wales) Act 2016, landlords can end a standard occupation contract without tenant fault, provided they follow strict rules regarding notice periods and grounds.

No-fault notices are designed to allow landlords to regain possession when they have genuine reasons while protecting tenants from sudden or unfair evictions.

Notice Period for No-Fault Eviction

For periodic standard occupation contracts, landlords must provide at least six months’ notice if they wish to terminate the contract without the tenant’s fault.

This means:

• The landlord must serve a written notice specifying the date the contract will end.
• That date must be at least six months after the notice is given.
• The landlord cannot ask the tenant to leave sooner without a valid legal ground (for example, serious rent arrears or anti-social behaviour).

The six-month notice period provides tenants with sufficient time to plan, find alternative accommodation, and avoid homelessness.

Minimum Term Before Serving No-Fault Notice

For new standard occupation contracts with a fixed term of at least 12 months, the landlord generally cannot serve a no-fault notice during the first six months of the contract.

This means tenants have greater security at the start of the contract.

Landlords can still seek possession during this period if there are serious grounds, such as breach of contract or prohibited conduct, but not simply because they want the property back without cause.

No-Fault Notices in Fixed-Term Contracts

During a fixed-term standard occupation contract, landlords cannot end the contract with a no-fault notice unless:

• The contract includes a landlord’s break clause allowing early termination.
• The landlord complies with the notice period specified in the break clause (which must be at least six months).

If there is no break clause, the landlord must wait until the fixed term ends before seeking possession without fault.

Auto-Conversion to Periodic Contracts

Another key rule in the Renting Homes (Wales) Act 2016 is that if a fixed-term standard occupation contract ends and is not renewed, it automatically converts to a periodic standard occupation contract.

This means:

• The tenant does not have to move out automatically at the end of the fixed term.
• The tenancy is renewed periodically, typically every month.
• All the rights and obligations of a standard occupation contract remain in effect.

Once the contract has converted to periodic, landlords can serve a no-fault notice, but they must provide the full six months’ notice required by law.

Why These Rules Exist

The Welsh Government introduced these rules to:

• Provide tenants with greater security and stability.
• Prevent unfair or retaliatory evictions.
• Encourage landlords to act professionally and plan.
• Support a more stable private rented sector in Wales.

By setting precise legal requirements for notice periods, the law ensures that tenants are not left vulnerable to sudden, disruptive moves.

Landlord Responsibilities When Serving Notices

When serving a rent increase notice or a no-fault possession notice, landlords must ensure:

• The notice is in writing.
• It contains all the required information.
• It gives at least the legally required minimum notice period.
• It is appropriately served, using valid delivery methods.

Failure to comply with these requirements can make the notice invalid and prevent the landlord from regaining possession.

Tenant Rights and Protections

Tenants (or contract-holders) have strong rights under these rules.

They are entitled to:

• Clear written notice of any rent increase or termination.
• At least two months’ notice for a rent increase.
• At least six months’ notice for a no-fault eviction from a periodic standard contract.
• Security from retaliatory eviction when requesting repairs or enforcing their rights.
• Protection from arbitrary or excessive rent increases.

These protections help ensure that renting in Wales is fair, safe, and stable.

Role of Rent Smart Wales

Rent Smart Wales is responsible for registering and licensing landlords and agents across Wales.

Landlords must:

• Be registered with Rent Smart Wales.
• Be licensed themselves or use a licensed agent to manage their properties.
• Understand and comply with legal obligations, including notice requirements.

Failure to comply with Rent Smart Wales requirements can result in fines, legal action, and restrictions on managing properties.

Best Practice for Landlords

Professional landlords in Wales should aim to:

• Keep clear, written records of all notices served.
• Provide more than the minimum notice period where possible.
• Discuss rent increases with tenants openly and in advance to ensure transparency and fairness.
• Follow Rent Smart Wales training and licensing requirements.
• Communicate respectfully and promptly with tenants about changes to their tenancy.

By following best practices, landlords can build trust, avoid disputes, and maintain a positive reputation.

Enforcement of the Law

Local authorities in Wales have powers to enforce the Renting Homes (Wales) Act 2016.

They can:

• Investigate complaints from tenants.
• Issue improvement notices or penalties.
• Prosecute landlords who fail to comply with notice requirements.

This enforcement framework ensures that tenants’ rights are protected and that bad practices do not undercut landlords who follow the rules.

Future Developments

The Welsh Government is committed to ongoing reform of housing law to:

• Strengthen tenant security.
• Improve housing conditions.
• Support a professional, fair, private rented sector.

Landlords should stay informed about any changes to ensure they remain compliant with the latest requirements.

External Useful Links

• Welsh Government Renting Homes Guidance: www.gov.wales/renting-homes
• Rent Smart Wales: www.rentsmart.gov.wales
• Shelter Cymru – Tenant and Landlord Advice: www.sheltercymru.org.uk
• Citizens Advice Wales – Housing Help: www.citizensadvice.org.uk/wales
• Law Wales – Renting Homes Act Overview: law.gov.wales/housing-and-local-services/renting-homes
• Renting Homes (Wales) Act 2016 – Full Legislation: www.legislation.gov.uk/anaw/2016/1/contents

FAQs

What counts as a rent increase?

Any change that increases the rent amount that the contract holder is required to pay.

How much notice is required for a rent increase?

At least two months’ written notice.

How often can rent be increased?

Generally, this occurs at least once every 12 months for periodic contracts.

What is a no-fault notice?

A landlord’s notice to end a contract without alleging any fault by the tenant.

How much notice is needed for a no-fault eviction?

Six months’ written notice for periodic standard occupation contracts.

Can a landlord serve a no-fault notice during a fixed term?

Only if the contract includes a valid break clause with at least six months’ notice.

What happens when a fixed-term contract ends?

It automatically converts to a periodic contract if not renewed.

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