Changes to Welsh Occupation Contracts From 1st June 2026

Changes to Welsh Occupation Contracts From 1st June 2026

As part of recent changes to the Renting Homes (Wales) Act 2016, new fundamental terms are being added to many occupation contracts from 1st June 2026.

The changes are designed to tackle rental discrimination by strengthening protections for people with children and those receiving benefits, preventing the use of blanket bans.

If your existing occupation contracts are affected, you must provide contract-holders with either an updated written statement or a written statement setting out the revised terms by 14th June 2026.

If you let your property through OpenRent’s Rent Now service, you can relax. We are taking care of this entire administrative process for you automatically.

  1. What’s changing
  2. Don’t miss the mid-June deadline!
  3. What landlords need to do
  4. How OpenRent is helping you stay compliant

Need to update an existing tenancy or create a new one? Rent Now helps ensure your Welsh occupation contracts meet the latest legal requirements from day one.

Start Your Tenancy Online

What’s changing

The core of the legislation revolves around two brand-new “fundamental provisions” (Sections 54A and 54B), which must now be included as fundamental terms in almost all secure, fixed-term standard and periodic standard occupation contracts.

Here is how they break down in practice:

  • The right to claim benefits (Section 54B): You can no longer restrict a contract-holder from being a welfare benefits claimant. Blanket “No DSS” or “No Benefits” policies – whether in your property adverts, viewing processes, or contract clauses – are now unlawful.
  • The right for children to live or visit (Section 54A): You cannot interfere with or restrict a contract-holder’s right to have a person under 18 live with them or visit the dwelling. Blanket “No Kids” policies are now strictly prohibited.

Because the compliance window is short, early preparation is essential. Failing to act quickly means serious non-compliance with the Renting Homes (Wales) Act.

OpenRent landlords don’t need to worry about missing this tight turnaround, as our platform has been fully updated to absorb these changes seamlessly.

Are there any exceptions? 

Yes, but they are limited. You can only restrict children living in the property if you can prove it is a “proportionate means of achieving a legitimate aim” (for example, adhering to legal overcrowding limits).

There are also narrow exemptions if your pre-existing landlord insurance explicitly prohibits children or benefit claimants, though you cannot take out new insurance policies to bypass the law.

Importantly, you are still completely entitled to assess a tenant’s genuine financial affordability; you simply cannot reject them because of where that income comes from.

You might also be interested in…

Don’t miss the mid-June deadline!

The regulations officially came into force on 1st June 2026.

However, the most urgent date for landlords to be aware of is 14th June 2026. By law, if you have an existing occupation contract that started before 1st June, you have a strict 14-day window to provide your contract-holder with a formal written statement detailing the variation to their contract (the inclusion of the new fundamental terms).

Missing this 14th June deadline leaves you non-compliant and vulnerable to civil penalties from local authorities or compensation claims from contract-holders for providing an incomplete or incorrect Written Statement.

To completely eliminate this risk for our users, OpenRent is automatically preparing and issuing these updates directly to your active tenants on your behalf.

What landlords need to do now

To stay on the right side of the law, landlords in Wales must take the following steps immediately:

  1. Serve a Notice of Variation for existing contracts: If you have contract-holders already living in your property, you must formally notify them in writing of the new fundamental terms by 14th June 2026. You can do this by issuing an updated Written Statement or a separate written notice of variation.
  2. Update contracts for new lets: Ensure that any new occupation contract drafted from 1st June onwards explicitly includes the exact statutory wording for Sections 54A and 54B.
  3. Revise your marketing: Review your property listings, viewing scripts, and pre-screening questionnaires. Any mention of “No DSS”, “Working professionals only”, or “No children” constitutes an immediate breach of the law.

A safe approach is to base your tenant vetting entirely on objective financial security. You can still require guarantors if an applicant fails standard affordability checks, provided you apply that requirement equally to all applicants regardless of their benefit status.

Create your occupation contracts through Rent Now and we’ll automatically include the required legal wording.

Create a Compliant Contract

How OpenRent is helping you stay compliant

Keeping track of rapid regulatory shifts can feel like a full-time job, but if you let your property through OpenRent, we take care of the legal heavy lifting for you.

Following the rollout of the 2026 regulations, we have updated our platform to ensure your tenancies remain fully compliant with Welsh law without any extra admin on your part:

Automatic updates for new contracts

Our standard Welsh Occupation Contract has been fully revised. Any new occupation contracts created through our Rent Now service on or after 1st June 2026 automatically include the exact statutory wording for the new anti-discrimination fundamental terms. You don’t need to rewrite or add anything yourself; it’s built-in and ready to sign.

We handle your existing tenancies

If you have an active Welsh occupation contract that was previously set up via Rent Now, you don’t need to worry about drafting a complex variation notice. OpenRent will automatically issue the required statutory notice of contract variation to your existing contract-holders on your behalf. This ensures you completely clear the strict 14-day legal hurdle and achieve full compliance before the 14th June 2026 deadline arrives.

By automating these contract updates, we ensure you can continue to find great tenants and manage your portfolio with absolute peace of mind.