What Happens to Your Rent If Your Home Is Repossessed in Wales?

If you rent a home in Wales, you may wonder what happens to your rent payments if your landlord’s property is repossessed by their mortgage lender. Repossession means the lender has taken legal steps to take over the property—often because the landlord missed mortgage payments. This situation can feel unsettling, but knowing your rights and what steps to take can help you stay protected. Here, we explain the laws, your options, and practical next steps under Welsh legislation.

What Does Property Repossession Mean for Renters?

When a landlord’s mortgage lender starts court proceedings to repossess a property, tenants can face major uncertainty. However, your tenancy agreement remains legally valid until you are formally asked to leave by a court order—even if your landlord loses ownership of the property.

• The lender (usually a bank/building society) must seek a court order to repossess the home.
• If you receive any notices from the lender or court, do not ignore them. Respond as instructed and seek advice.
• In Wales, renters in social and private tenancies have particular protections under the Renting Homes (Wales) Act 2016 and associated regulations.

Do You Still Have to Pay Rent?

Yes—until the lender or new owner gains a repossession order covering tenants and you are officially required to leave, you must continue to pay rent to your current landlord, as per your contract. Failing to pay may put you at risk of losing your deposit or being named in arrears.

If the lender gains ownership, they can apply to the county court for a possession order requiring you to leave. Only after an official notice or order is given does your obligation change.

What About Your Deposit?

All deposits for private tenancies in Wales must be protected using a government-approved scheme. If the property is repossessed, you should still get your deposit back at the end of your tenancy—assuming you have complied with your agreement. Check which scheme holds your deposit; you can verify via the following official schemes in Wales:

• Deposit Protection Service (DPS)
• mydeposits
• Tenancy Deposit Scheme (TDS)

If you are unsure about your deposit’s status after repossession, contact the scheme directly for support.

Receiving Official Notices: Forms Used in Wales

If a court or lender notifies you of proceedings, you may receive formal documents. Key notices and forms include:

• Notice Seeking Possession (Form RHW16)
  • Used by a landlord or their lender to notify contract-holders in Wales that they are being asked to leave.
  • View and download Form RHW16 here.
  • Practical Example: If you receive Form RHW16 after your landlord’s lender takes possession, review the notice period and get advice immediately.
• County Court Possession Claim Forms
  • Used by a lender to start legal proceedings to take possession. You may receive a N5 Claim Form for Possession and N11B Defence Form.
  • View Form N5 (Claim form for possession)
  • View Form N11B (Defence form for possession)
  • Practical Example: If you receive a court claim (Form N5), read it thoroughly—use Form N11B to explain your situation to the court if you wish to present a defence.

What Should Renters Do If Repossession Happens?

Keep calm. You still have rights and time to plan. Take these key action steps:

• Continue paying rent as normal until officially told otherwise.
• Read any letters or forms from the lender or court carefully.
• Contact your deposit scheme and the lender (if needed) for clarity on your rights.
• Seek free, impartial advice from government-certified support services (see resources below).
• Gather all tenancy documentation, such as your contract and deposit protection certificate.

Who Handles Disputes and Hearings?

Disputes about eviction, possession, or contract-holder rights in Wales are managed by the County Court system, which is responsible for issuing possession orders and confirming tenant rights in repossession cases. If you disagree with an eviction order, you may be able to appeal through the County Court.

Key Legislation in Wales

• Renting Homes (Wales) Act 2016 – main law setting out tenant and landlord rights and repossession procedures
• Rent Act 1977 – offers some types of longer-term protection for certain older tenancies

The Renting Homes (Wales) Act 2016 is the primary legislation for private and social contract-holders in Wales today.

1. If my landlord’s lender repossesses the house, do I have to leave straight away?
   You do not have to leave immediately. The lender must obtain a possession order from the County Court. You can stay until you are formally ordered to leave.
2. Does my landlord still have to return my deposit after repossession?
   If your deposit is in a government-approved scheme, it should remain protected. At the end of your contract, you can apply for its return through the scheme, regardless of repossession.
3. Can I stop paying rent after repossession proceedings begin?
   No. You should continue paying rent to your landlord until a court or the lender officially takes ownership and notifies you that rent should stop or be paid elsewhere.
4. What official forms might I receive, and what should I do?
   You might get a Notice Seeking Possession (Form RHW16) or county court forms N5 and N11B. Read them carefully, respond if needed, and seek advice if you’re unsure how to proceed.
5. Who can help renters in Wales facing property repossession?
   Free advice is available from Shelter Cymru, Citizens Advice, and your local council’s housing department. See the resources section below for direct links.

Need Help? Resources for Renters in Wales

• Shelter Cymru – Free expert housing advice and support on repossession and tenant rights
• Citizens Advice Wales – Housing – Free guidance and support for renters, including legal notices and deposit issues
• Find your local council housing department for urgent homelessness or possession advice
• Welsh Government Renting Homes: guidance and resources
• County Court: official handling of repossession cases in Wales

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1. Renting Homes (Wales) Act 2016
2. Rent Act 1977
3. Shelter Cymru: Repossession advice
4. GOV.UK: Eviction notices and forms

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