Diolch, Llywydd. This group of amendments provides greater clarity in relation to leases and occupation contracts. Firstly, amendments 21, 22 and 23 clarify the point at which a tenant will have breached an implied term. The Bill is founded on the principle that building safety is a shared responsibility, with residents, landlords and accountable persons all playing their part. The resident duties are intended to promote safe behaviour and secure compliance. It's about working with residents to ensure that they understand the role they have to play in keeping their building safe.
Section 69 inserts section 30IA into the Landlord and Tenant Act 1985, and that implies terms into certain leases. In practical terms, this means that certain building safety obligations automatically form part of the lease, and a failure to comply could amount to a contractual breach, with potential consequences including steps to secure possession through the courts.
However, further consideration of how these implied terms interact with the Bill's wider enforcement framework has highlighted a need for greater clarity for residents. The current drafting could be read as creating a breach at the point of initial non-compliance with a resident's duty, and this is not the policy intention. The potential risk of losing one's home should always be a last resort, available only after reasonable steps to secure compliance have been exhausted and remain unsuccessful.
Amendment 21 amends section 69 to state that a breach arises only where a resident fails to comply with certain types of formal enforcement action, namely a contravention order, access order, repairs access order or compliance notice. In other words, it's not the initial failure to comply with a duty that may lead to a breach of lease proceedings, but non-compliance with a formal order or notice. This removes the possibility of landlords attempting to circumnavigate the compliance procedures in the Bill by applying directly for a contractual breach at the first opportunity they can.
This distinction is important. It ensures that residents are given the opportunity to remedy matters before any contractual breach arises, and it prevents landlords from bypassing the intended compliance-led process. This amendment does not alter the steps that residents will have to take, but it does remove any ambiguity on when a tenant's breach of contract has occurred. Amendments 22 and 23 make the necessary consequential changes to give full effect to the intention of amendment 21.
Turning to amendments 24, 25, 26 and 38, I have listened to representations made by stakeholders and during scrutiny that clarity is needed in relation to how the new duties interact with occupation contracts under the Renting Homes (Wales) Act 2016. The implied terms under section 30IA of the Landlord and Tenant Act 1985 apply to occupation contracts. However, during Stage 2, concerns were raised about whether this would amount to a variation of contract for the purposes of the 2016 Act. A non-Government amendment sought to specify that it would not. While well intentioned, I think that approach risked creating further ambiguity about how the implied terms work with occupation contracts.
It's important to remember that the 2016 Act heralded a new approach to renting homes in Wales. It introduced a fundamental restructuring of housing law. As part of this, it was the policy intention that all contractual rights and obligations should be transparent and contained within the written statement, thus moving to a fully documented contractual model. Therefore, if a notice of variation in contract were not required as a result of the new terms inserted by the Bill, it would not be consistent with the principle that occupation contracts are intended to provide a complete and comprehensive record of the agreement. Nor would it provide contract holders with all the information they need about their rights and obligations, and it's vital that occupation contract holders are notified of any changes to the occupation contract.
Given the potential for uncertainty, amendment 24 is designed to ensure we remove any doubt. It confers a regulation-making power enabling Welsh Ministers to incorporate the duties in the Bill as fundamental terms of occupation contracts, while also disapplying the implied terms in section 30IA of the Landlord and Tenant Act 1985 to occupation contracts. This ensures that duties can be fully integrated into the renting homes framework in a clear and transparent way. This approach does not change the substance of residents’ duties under the Bill. It ensures occupation contracts remain a complete and accurate record of rights and obligations, reinforces the importance of building safety, and provides clarity to landlords that a written statement of a variation in contract will be required. The regulations will be developed in full consultation with stakeholders, and will also be subject to enhanced Senedd scrutiny.
Amendments 25, 26 and 38 are consequential to amendment 24, and provide that regulations will be subject to an enhanced approval procedure before being made. Together, these amendments provide clarity for landlords and tenants on how the implied and fundamental terms are intended to operate. I therefore ask Members to support all the amendments in this group.