Housing law in Wales is devolved to the Welsh Assembly, and with effect from 1 December 2022, new legislation came into force which in many respects is radically different from the law in England.

For example:

• The difference between tenancies and licenses is largely eliminated
• There is, therefore, a new terminology – we no longer refer to tenants and tenancies but occupation contracts and contract holders
• There are prescribed terms which will apply to all occupation contracts.

So, where does this leave lodgers?

Lodgers are now defined (in Wales) in section 244 of the act and (in more detail) in Schedule 2 (6).  They provide for lodgers to be excluded from the definition of an occupation contract but only in certain circumstances.

Which are as follows:

1. Shared accommodation with the landlord

This makes it clear that for someone to be a lodger, they must share living accommodation with their landlord.  And, this living accommodation must be ‘proper’ living accommodation.  Schedule 2 says specifically that

(6) “Accommodation” does not include an area used for storage, or a staircase, passage, corridor or other means of access.

So that means sharing a kitchen, and/or bathroom, and/or sitting room, dining room or other living space.

If your lodger has his or her own rooms and does not share your rooms, even though they may be living in your house or flat and share the same front door and hallway, then that will be an occupation contract and will bring with it all the rules that come with occupation contracts. 

Including the rules which make it difficult for you to evict them, including the rules that require you to get a court order.

2. The landlords ‘only or principal home’

Schedule 2 also says that the property (or ‘dwelling’) which includes the lodger’s rooms, must be the ‘only or principal home’ of the lodger landlord immediately before the lodger arrangement starts. 

It then goes on to say that the exception (ie the exception which says it is not an occupation contract) will only apply while the landlord continues to occupy the dwelling as their only or principal home.

This will make things difficult for lodger landlords who have two homes.  For example, if you have houses in Wales and France and have lodgers living in your Welsh house who look after it while you are away.  Unless it is clear that your Welsh property is your PRINCIPAL home – which almost certainly must mean that you spend more time there – your lodgers will be contract holders, and you will have to comply with all the rules that apply to occupation contracts.

However, temporary absences won’t count.  So if you go on a long holiday, have a spell in hospital or go to nurse your Great Aunt Mary for a few weeks, that should not turn your lodgers into contract holders.  Unless you spend such a long time away that it can only be assumed that you have moved out.

Although it is impossible to say for sure – we will have to see how these rules are interpreted by Judges in legal cases.

3. No ‘notice’ has been given

The notice is a notice served on the lodger telling them that their occupation is an occupation contract. 

Needless to say, this is NOT something you should do as you will lose most of your rights as a resident landlord sharing living accommodation.  In particular, the right to evict your lodger without a Court Order as described in the ‘Ending’ section of this website.

It is important, therefore that any written lodger agreement is crystal clear that this is a lodger situation, and that they are not a contract holder.  And that the agreement should not be taken as being notice that they have an occupation contract. 

And finally

If you have a normal lodger situation – i.e.

• your lodger shares one or more of your kitchen, bathroom and sitting room, 
• the property is your main home, and
• you don’t spend part of your time living elsewhere –

then the rules described in this website will apply.

However, if

• your lodger has his own self-contained rooms in your flat and doesn’t share any of your rooms, or
• if you spend nine months of the year living in your house in Brittany or Spain. 

Then your lodger will be deemed to be a ‘contract holder’.  This means they will have an ‘occupation contract’ and can claim all the rights of contract holders under the Welsh legislation.

Including the right to offset up to two months’ worth of rent if you have not provided a proper written statement of their occupation contract (including all the terms prescribed under Welsh law) within 14 days of the start of their contract.

This website does not cover occupation contracts, but if you are in this situation, our sister site Landlord Law can help.