Occupation contract

An occupation contract is the legal agreement between a landlord and a contract-holder that allows someone to live in a rented home in Wales. It is the Welsh equivalent of a tenancy, introduced by the Renting Homes (Wales) Act 2016, which came into force on 1 December 2022 and replaced tenancies and licences across Wales with a single system of occupation contracts. Under the Act, tenants became contract-holders and tenancy agreements became occupation contracts. The system applies to Wales only; landlords in England use the assured tenancy framework instead.

The two types of occupation contract

There are two main kinds. A secure contract is used mainly by community landlords, meaning councils and housing associations, and is modelled on the old secure tenancy. A standard contract is the default for private landlords and is closer to the old assured shorthold tenancy. A standard contract can be either fixed term, running for a set period, or periodic, rolling from one rent period to the next. When the Act came into force, existing tenancies converted automatically to the matching type of occupation contract. From working with self-managing landlords across the UK, the most common confusion is assuming English rules apply in Wales; the two systems are now genuinely different, and a property in Wales must be let on an occupation contract, not an assured tenancy.

The written statement

A landlord must give every contract-holder a written statement of the occupation contract, the document that sets out all the terms, within 14 days of the contract starting. The terms come in categories: fundamental terms, which cover the most important legal protections, supplementary terms, which deal with day-to-day practical matters, and any additional terms the parties agree. The Welsh Government publishes model written statements that landlords can use, and these already contain the required fundamental and supplementary terms. Failing to provide the written statement on time can carry financial consequences for the landlord, so it is one of the first obligations to get right. Landlords using August who let in Wales tell us the written statement deadline is the detail most often missed when a contract begins.

Ending an occupation contract

The notice a landlord must give to end a periodic standard contract without fault, under Section 173 of the Act, is six months, and it cannot be served within the first six months of occupation. In practice this means a contract-holder who keeps to the terms is entitled to stay for a minimum period from the outset. Where there has been a breach, such as rent arrears or anti-social behaviour, the landlord relies instead on the relevant breach grounds rather than the no-fault route. These notice rules are distinct from the possession regime in England, so a Welsh landlord cannot rely on English notice periods or forms.

Recent changes from 1 June 2026

From 1 June 2026, the Renters' Rights Act 2025 added two new fundamental terms to the Renting Homes (Wales) Act 2016, under new sections 54A and 54B. These prevent a landlord from discriminating against a contract-holder who has children or who receives welfare benefits, mirroring a similar change in England but on a separate Welsh timetable. Where these terms apply to an existing occupation contract, the landlord should give the contract-holder an updated written statement or a written statement of the new terms. The Welsh Government has updated its model written statements to reflect the change.

For the full legal framework, see the Welsh Government's renting homes guidance and the Renting Homes (Wales) Act 2016 itself.

Frequently asked questions

What is an occupation contract?

It is the agreement that lets someone live in a rented home in Wales, introduced by the Renting Homes (Wales) Act 2016. It replaced tenancies and licences in Wales, so a Welsh renter is a contract-holder with an occupation contract rather than a tenant with a tenancy.

What is the difference between a standard and a secure occupation contract?

A standard contract is the default for private landlords and can be fixed term or periodic. A secure contract is used mainly by community landlords, that is councils and housing associations, and gives stronger security of tenure. Most private lettings in Wales use a standard contract.

How much notice must a landlord give under an occupation contract?

For a no-fault notice on a periodic standard contract under Section 173, the landlord must give six months, and cannot serve it within the first six months of the contract. Where the contract-holder has breached the terms, different grounds and notice periods apply.