Q. How has the Renting Homes (Wales) Act 2016 changed succession rules in Wales?
A. The Renting Homes (Wales) Act 2016 (‘the RHWA’) introduced enhanced succession rights. This article focusses on succession rights under secure contracts, which are the occupation contracts primarily granted by community landlords.
Under the RHWA, there are enhanced rights of succession allowing for “priority” and “reserve” successors to succeed to an occupation contract on the death of a contract holder. Accordingly, it is possible for two successions to occur in relation to a contract where the deceased was not a joint contract holder. In addition, carers are now qualified to succeed where certain conditions are satisfied.
In order to identify potential successors, landlords must first consider the provisions of the RHWA which set out the definitions of the following categories:
- Priority Successors
- Reserve Successors – Family Members
- Reserve Successors – Carers
Priority Successors
Under section 75 of the RHWA, a person will be a priority successor where the following conditions are satisfied:
- They are a spouse or civil partner of the contract holder or lived as so; and
- They occupied the property at the time of the contract holder’s death as their only or principal home.
They will not be a priority successor to a contract where the contract holder themselves was a priority successor to the contract.
Reserve Successors – Family Member
Under section 76 of the RHWA, a person will be a reserve successor where the following conditions are satisfied:
- They are not a priority successor;
- The meet the family member condition (they must be a member of the contract holder’s family);
- They occupied the property at the time of contract holder’s death as their only or principal home; and
- If they meet the family member condition because of section 250(1)(c) of the RHWA (family member other than spouse or civil partner etc, to include a parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece), they also meet the basic residence condition.
The basic residence condition requires that the person must have occupied the property or lived with the contract holder for a period of 12 months ending with the contract holder’s death.
Reserve Successors – Carers
Under section 77 of the RHWA, a carer will be a reserve successor where the following conditions are satisfied:
- They are not a priority successor;
- They meet the carer condition. This is met if at any time in the period of 12 months ending with the contract holder’s death, they were a carer in relation to the contract holder or a member of the contract holder’s family who, at the time the care was provided, lived with the contract holder;
- They occupied the property as their only or principal home at the time of the contract holder’s death; and
- They meet the carer residence condition which requires that they meet the basic residence condition (under section 76 above) and at the time of the contract holder’s death, there was no other property which they were entitled to occupy as a home.
A person will not be a carer for the purposes of section 77 where they have provided care due to a contract of employment or other contract with any person.
Multiple Qualified Successors
Where there is more than one person qualified to succeed, the successor will be determined in accordance with section 78 of the RHWA.
Where more than one person is qualified to succeed, if one of the persons is a priority successor, they will succeed to the contract. If two or more of the persons are priority successors, the person or persons who succeed to the contract is/are:
- The priority successor (or successors) selected by agreement between the priority successors, or
- If they fail to agree (or fail to notify the landlord of any agreement) within a reasonable time, whichever of them the landlord selects.
In the event that all persons are reserve successors, the person or persons who succeed is/are:
- The person (or persons) selected by agreement between the reserve successors, or
- If they fail to agree (or fail to notify the landlord of any agreement) within a reasonable time, whichever of them the landlord selects.
Any persons not selected as a successor can appeal to the court against the landlord’s decision within four weeks of being notified by the landlord that they have not been selected. The court must determine the appeal on the merits and not by way of review.
For more information, please contact Kenya Greenidge.
