Best Rent Increase Guide for a Converted Occupation Contract in Wales
If your tenancy started before 1 December 2022 and is now a periodic standard occupation contract, you hold a converted occupation contract — and that changes everything about how a rent increase plays out. The best guide for your situation is one that covers Rent Assessment Committee exposure in detail, not just the Form RHW12 mechanics. The reason is specific: on a converted periodic contract, your contract-holder can refer your proposed increase to the Rent Assessment Committee using Form RAC4 within two months of receiving the notice. On a fresh post-2022 periodic contract, that right does not exist — the increase simply takes effect after the notice period expires.
Most landlord resources treat all Welsh rent increases the same way: fill in Form RHW12, give two months' notice, done. That is accurate for fresh contracts. For converted contracts, it skips the part that matters most.
Why Converted Contracts Are Different
When the Renting Homes (Wales) Act 2016 came into force on 1 December 2022, every existing assured shorthold tenancy in Wales converted automatically into a standard occupation contract. The tenancy itself continued — same parties, same property, same rent — but the legal framework changed from the Housing Act 1988 to the Renting Homes Act.
The transitional provisions preserved one critical tenant right: the ability to challenge a rent increase before the Rent Assessment Committee. This right exists under Schedule 12, paragraph 15 of the Act and the Renting Homes (Rent Determination) (Converted Contracts) (Wales) Regulations 2022 (S.I. 2022/781). It applies to converted periodic contracts — landlords who granted a new periodic contract after December 2022 are not exposed to it.
The practical difference:
| Factor | Fresh Contract (post-Dec 2022) | Converted Contract (pre-Dec 2022 AST) |
|---|---|---|
| Rent increase mechanism | Section 123, Form RHW12 | Section 123, Form RHW12 |
| Minimum notice | Two months | Two months |
| Frequency | First notice may specify any date after two months' notice; subsequent notices must be at least one year apart | Same, with pre-conversion rent variations counted under the transitional rules |
| Contract-holder can challenge amount | No | Yes — Form RAC4 to the Rent Assessment Committee within two months |
| Committee can set a different rent | N/A | Yes — can lower, confirm, or raise the proposed rent |
| Effect of a voided notice | Re-serve with at least two months' notice from deemed service; the one-year interval applies to subsequent notices | Same timing rules; a valid re-served notice can also be referred to the RAC within two months |
What to Look for in a Guide
A rent increase guide for converted contracts needs to cover five things that form-only resources and generic templates skip:
1. Contract classification. The guide should walk you through determining whether your contract actually converted or whether it was replaced by a fresh agreement. If you and the contract-holder signed a new contract after December 2022 rather than letting the original tenancy roll over, you may hold a fresh contract — and the tribunal exposure disappears.
2. Pre-notice market audit. Before serving Form RHW12, you should know what the Rent Assessment Committee would determine as the open-market rent. The committee applies Regulation 6 of S.I. 2022/781: the rent a willing landlord could reasonably expect for the dwelling on the open market, disregarding any improvements the contract-holder made. A guide should explain how to audit your proposed rent against local comparables before you commit to a figure.
3. The referral timeline. The contract-holder has two months from receiving Form RHW12 to submit Form RAC4 to the Residential Property Tribunal Wales. While the application is pending, the contract-holder is advised to pay the existing rent. The committee's determination applies retrospectively from the effective date in the RHW12 notice, unless you and the contract-holder agree on a different date, and replaces the proposed figure. A guide should map this timeline against your own 12-month frequency rule so you understand the worst-case delay.
4. The three tribunal outcomes. The Rent Assessment Committee can confirm your proposed rent, reduce it, or — less commonly — raise it above what you asked for. Knowing that the committee benchmarks to open-market rent, not a CPI formula, is the difference between serving a notice you can defend and serving one that invites a reduction.
5. Evidence and proof of service. The committee will examine whether the notice was served lawfully under Section 237. If you served by email without the contract-holder's prior written consent, the notice may be void regardless of the rent figure. Self-managing landlords also need an active Rent Smart Wales licence to prepare and serve Form RHW12. The guide should include a service log that records the delivery method, date, and any consent documentation.
Who This Is For
- Landlords on a converted periodic occupation contract (a tenancy that started before 1 December 2022 and rolled over automatically) who are issuing their first rent increase under the Renting Homes Act
- Accidental landlords renting out a former home or inherited property where the original AST predates the Act
- English landlords with a Welsh property who previously used Section 13 notices and now face a system with a tribunal route they have not encountered before
- Landlords whose contract-holder has previously mentioned the Rent Assessment Committee or objected to a proposed increase
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Who This Is NOT For
- Landlords who granted a brand-new tenancy after 1 December 2022 — you hold a fresh contract and the tribunal referral right does not apply to you
- Social housing tenants — secure contracts are governed by Section 104, not Section 123
- Landlords on a fixed-term contract — Section 123 does not operate during the fixed term
- Anyone looking for legal advice on a specific dispute — a compliance guide explains the rules and the process; it is not a substitute for a solicitor
The Guide We Publish
Rent Increases in Wales: A Landlord's Guide to the Renting Homes Rules is a 12-chapter guide with a dedicated Contract Gateway Decision Map for classifying your agreement, a Statutory Date Calculation Worksheet, a Section 237 Service Log, and a Rent Assessment Committee Exposure Map covering the referral window, the evidence standards and the three outcomes. It covers both converted and fresh contracts — but the converted-contract sections are where the guide does work that the free Form RHW12 cannot.
Full refund, no time limit. If the guide does not help you serve a compliant rent increase notice, email [email protected].
Frequently Asked Questions
How do I know if my contract is converted or fresh?
If the tenancy started before 1 December 2022 and you did not sign an entirely new contract after that date, it converted automatically. The original AST became a standard occupation contract on 1 December 2022; once that contract is periodic, the contract-holder keeps the right to challenge rent increases before the Rent Assessment Committee.
Can the Rent Assessment Committee increase my rent above what I proposed?
Yes. The committee determines the open-market rent for the property. If the market supports a higher figure than you proposed, the committee can set the rent above your proposed amount — though this outcome is less common than a confirmation or reduction.
What if the contract-holder does not submit Form RAC4 within two months?
The proposed rent takes effect on the date specified in Form RHW12 if no Form RAC4 application is made. The referral window runs from the contract-holder's receipt of the notice, and any committee determination applies retrospectively from that specified date.
Does the committee consider improvements the tenant made?
No. Under Regulation 6 of S.I. 2022/781, the committee must disregard any increase in rental value attributable to improvements the contract-holder carried out voluntarily (not in fulfilment of a contractual obligation to the landlord). Improvements made within the last 21 years under the current or preceding tenancy are covered.
Is there a rent cap for converted contracts in Wales?
No statutory percentage cap applies to private standard contracts in Wales — converted or fresh. The Rent Assessment Committee determines the open-market rent if a referral is made, but there is no formula or index that limits how much you can propose.
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