RESIDENTIAL TENANCIES – ASSURED TENANCIES 2

STATUTORY PROTECTION 2

RENT ACT 1977 2

HOUSING ACT 1988 2

Effect of HA 1998 3

ASSURED TENANCIES 4

Exceptions: 4

ASSURED SHORTHOLD TENANCIES 6

BEFORE 28 February 1997: 6

AFTER 28 February 1997: 6

Social landlords 7

FULLY ASSURED TENANCY 8

Security of Tenure scheme: 8

Grounds for Possession 8

Mandatory Grounds (sch2 part 1) 8

Discretionary Grounds (sch2 part 2) 9

Nuisance tenants (Ground 14) 10

Notice of intention to commence proceedings 10

Procedure – Part 55 11

Suspension of Possession 11

Public Law Defences to claims by Housing Associations 12

Succession 13

RESIDENTIAL TENANCIES – ASSURED TENANCIES

The main type of tenancy that tenants have today.

STATUTORY PROTECTION

At common law, a tenancy ends by common law method by expiry of fixed term, service of a notice to quit, forfeiture of lease or surrender. Built upon common law are various statutory protections giving security of tenure to tenants. Under the various statutes, tenants have a right to stay on at the end of the lease until the landlord have a statutory ground for possession.

The statutes which gives security of tenure to tenants are:

1. The Rent Act 1977: Protects private sector residential tenants whose tenancy was granted before 15^th January 1989.

2. The Housing Act 1988: Protects private sector residential tenancies granted after 15th January 1989.

3. The Housing Act 1985: Protects public sector tenancies.

Business tenants are protected by Part II Landlord & Tenant Act 1954.

Agricultural tenants are protected by the Agricultural Holdings Act 1986 and Agricultural Tenancies Act 1995.

RENT ACT 1977

• Protects private sector residential tenants whose tenancy was granted before 15^th January 1989.

1. Landlord must have ground for possession to remove tenant after the term

2. The tenant can apply for a fair rent

3. The tenant’s spouse or relative can succeed to the tenancy on death

However, the Rent Act was thought to deter landlords from letting.

HOUSING ACT 1988

• Protects private sector residential tenancies granted after 15th January 1989.

The Housing Act 1988 was introduced and the effect therefore was to deregulate the market. It was not retrospective in effect, thus there are two (2) distinct legislative codes – RA 1977 and HA 1988.

Each code has a distinct set of categories into which the tenancy might fall:

RA 1977: Protected Tenancies

Statutory Tenancies

Restricted Contracts

HA 1988: Assured Tenancies

Statutory Protected Tenancies

Assured Shorthold

Much of the history associated with all legislation pre-1998 Act was essentially covering rent control and protected tenancies but it was argued that this had led to badly managed properties as people received little return for their capital investment and had limited opportunity to get their properties back as and when they wanted. The 1988 Act sought to do away with much of the rent control and protected tenancy status. Security of tenure was still provided under the assured tenancy basis but the significance of this was undermined by the ability of the landlord to create assured shortholds.

These now dominate the market – in 1990 the first year of the 1998 reforms only 8% of market assured shorthold in 2001 that was 56% and now even more and now only 2.2% of the market is governed by 1977 Act tenancies.

Effect of HA 1998

1. Substantially removed security of tenure

It created the AST, under which the tenant has no right to stay on the end of the tenancy.

2. Created the Assured Shorthold Tenancy

3. Increased rights of possession for assured tenancies

The tenant has a right to stay on after the end of the lease until the landlord has a statutory ground for possession. The HA 1988 increases the grounds for possession

4. Limited rent control

Landlords can now charge a market rent

5. Limited succession rights

ASSURED TENANCIES

When is a tenant an Assured Tenant under the Housing Act 1988?

Assured Tenancy Definition – HA 1988 s1:

• The Dwelling House is let as separate dwelling;

• The tenant is an Individual, not company; and

• The tenant occupies the premises as their only or principal home.

By s45 HA 1988, a dwelling house can be a house or part of the house, will include a flat or rooms within a flat or house or perhaps even a hotel.

In Uratemp Ventures Ltd v Collins and Carrell [2002] 1 AC 301, HL held that in order to be a dwelling house, there do not need to be cooking facilities. A proper bed sit could be dwelling house in itself. Also, a dwelling house could be one (1) room in a hotel with or without cooking facilities.

Lord Millet held:

“ in both ordinary and literary usage, residential accommodation is a dwelling if it is an occupier’s home. It is the place where he lives, and to which he returns and which forms part of the centre of his existence. Just what use he makes of it when he lives there depends on his mode of life. No doubt slleo there and usually eat there, he will often prepare some of his meals there but his home is no less his home just because he does not cook there but prefers to eat out or bring in ready meals – never been a legitimate requirement that cooking facilities must be available for premises to qualify as a dweliing”

In Chelsea Yacht and Boat Co Ltd v Pope, it was held that a mobile houseboat, which could be moved easily, was not a fixture in land law, it was a chattel, therefore, it could not be a subject of an assured tenancy. Assured tenancy has to be a tenancy of land.

Exceptions:

Sch 1 HA 1988 – NOT Assured tenancy if:

• High rateable value

Exceeding an annual rent of 25,000 where the tenancy was granted after 1^st April 1990.

In 2010, the limit was increased, if the rent was over 100,000 a year, the tenancy is not covered by the Housing Act 1988.

• No rent or very low rent

1,000 or less a year in London, or 250 a year outside London, if the tenancy was granted after 1^st April 1990

• Business, licensed or agricultural

• Student let by educational institution

• Holiday let

• Resident landlord (schedule1...

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