From 1st June 2026, significant changes to Welsh occupation contracts will come into effect, introducing new fundamental terms aimed at preventing discrimination in the rental sector. These amendments to the Renting Homes (Wales) Act 2016 specifically protect tenants with children and those receiving welfare benefits, prohibiting blanket bans that have previously been common in the market.

Key Changes to Welsh Occupation Contracts

The legislation introduces two new fundamental provisions, Sections 54A and 54B, which must be incorporated into nearly all secure, fixed-term standard, and periodic standard occupation contracts in Wales. These provisions address two critical areas of tenant rights.

• The right to claim benefits (Section 54B): Landlords can no longer exclude tenants solely because they receive welfare benefits. This means that blanket policies such as “No DSS” or “No Benefits” in advertisements, viewings, or contract clauses are now unlawful.
• The right for children to live or visit (Section 54A): Landlords cannot interfere with or restrict a tenant’s right to have children under 18 living with or visiting them. Blanket “No Kids” policies are strictly prohibited under the new rules.

These changes aim to tackle rental discrimination and ensure fairer access to housing for families and benefit claimants. However, there are limited exceptions. Restrictions on children may be permitted if they are a proportionate means of achieving a legitimate aim, such as complying with legal overcrowding limits. Additionally, narrow exemptions exist if pre-existing landlord insurance explicitly prohibits children or benefit claimants, although new insurance policies cannot be used to circumvent the law.

Compliance Deadline and Requirements

The regulations officially came into force on 1st June 2026, but the critical compliance deadline for landlords is 14th June 2026. Landlords with existing occupation contracts that began before 1st June must provide tenants with a formal written statement detailing the inclusion of the new fundamental terms by this date. Failure to meet this deadline risks non-compliance, which could lead to civil penalties imposed by local authorities or compensation claims from tenants for incomplete or incorrect documentation.

For new lets from 1st June onwards, occupation contracts must explicitly include the statutory wording for Sections 54A and 54B. Landlords are also required to review and update their marketing materials, including property listings, viewing scripts, and pre-screening questionnaires, to remove any discriminatory language such as “No DSS,” “Working professionals only,” or “No children.”

What this means for landlords

Landlords must adapt their tenant vetting processes to focus solely on objective financial affordability rather than the source of income. While it remains lawful to assess a tenant’s genuine financial security and require guarantors if necessary, these measures must be applied equally to all applicants regardless of their benefit status.

Landlords should act promptly to serve Notices of Variation for existing contracts and ensure all new occupation contracts comply with the updated legal requirements. Failure to do so not only breaches the Renting Homes (Wales) Act but also exposes landlords to potential legal and financial consequences.

Support from OpenRent

OpenRent has updated its platform to assist landlords in complying with these new regulations. For landlords using OpenRent’s Rent Now service, the platform automatically includes the required statutory wording in all new Welsh occupation contracts created from 1st June 2026. Additionally, OpenRent will issue the necessary variation notices to existing tenants on behalf of landlords, ensuring compliance with the 14th June deadline without additional administrative burden.

This automation helps landlords avoid the risk of non-compliance and allows them to continue managing their properties confidently and efficiently under the new legal framework.

Source: Based on reporting from OpenRent

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/