Week 18 - Assured and Assured Shorthold Tenancies

Question 1

Describe the purpose of the Rent Act 1977

Answer 1

The Rent Act 1977 gave tenants of protected tenancies considerable security of tenure and restricted the amount of rent landlords could charge.

Question 2

What was a consequence of the Rent Act 1977?

Answer 2

Landlords became reluctant to rent out residential properties due to restrictions in rent they could charge, which led to a decline in the stock available for rent.

Question 3

Describe one of the objectives of the Housing Act 1988.

Answer 3

To increase the availability of properties for rent. Therefore, certain provisions in the Act were intended to make letting of property a more attractive proposition to landlords by making it easier for them to regain possession after the end of the contractual period of the letting and to charge rent at market levels.

Question 4

Describe the difference between an assured tenancy and an assured shorthold tenancy.

Answer 4

Main difference = the level of security given to the Tenant.
With an assured tenancy, the landlord can obtain possession only by proving one of the grounds
under Schedule 2 of the 1988 Act.
With an assured shorthold tenancy, the landlord need only show that the tenancy has come to an end
and that he has given the proper notice to the tenant.

Question 5

What are the essential conditions of an assured tenancy?

Answer 5

A tenancy under which a dwelling house is let as a seperate dwelling is an assured tenancy if and so long as:
The tenant is an individual
The tenant occupies the dwelling as his only principle home
The tenancy is doesn’t have any of the exceptions set out in Schedule 1

Question 6

Name 5 exceptions of an assured tenancy

Answer 6

• Tenancies created before 15th January 1989
• Tenancies of dwelling houses with high rateable values
• Tenancies where the tenant pays no or very little rent
• Business tenancies
• Holiday lettings
• Tenancies to students
• Tenancies with a resident landlord

Question 7

What are the requirements of an assured tenancy:

Answer 7

An assured tenancy can only be created if:

• notice is served on the tenant before commencement that it is an assured tenancy
• there is an express provision in the tenancy agreement to that effect

Question 8

Describe how a landlord can terminate an assured fixed-term tenancy.

Answer 8

The landlord can exercise a power reserved in the tenancy, such as a break clause. If the landlord does terminate the fixed-term contract the Tenant will be entitled to a statutory periodic tenancy which can only be terminated in accordance with the procedure relevant to a periodic tenancy.

Question 9

Describe how a landlord can terminate an assured periodic tenancy.

Answer 9

The landlord can obtain a court order. The landlord must first serve a Notice of Possession Proceedings (NOPP) and satisfy the court of one or more of the statutory grounds for possession.

Question 10

What are the reasons why a tenant would not be entitled to remain in possession of a periodic tenancy and the end of their fixed term tenancy?

Answer 10

• The tenancy has been terminated by a court order, surrender or ‘other action’ on the part of the Tenant.
  OR
• The tenant is granted another tenancy of the same or substantially the same dwelling house as was
  comprised in the original fixed-term letting.

Question 11

How many grounds for possession are there for an assured tenancy?

Answer 11

17: 8 mandatory and 9 discretionary

Question 12

What are the grounds for possession for an assured tenancy?

Answer 12

• The landlord has served a NOPP – unless the court considers it just and equitable to dispose with this requirement
• The landlord satisfies one or more of the grounds of possession in Schedule 2 – unless the possession proceedings are brought by a mortgagee.

Question 13

Why were assured shorthold tenancies introduced?

Answer 13

• Introduced by the Housing Act 1988. Aimed to encourage landlords to let knowing that there was complete certainty of repossession at the end of the term should the Tenant refuse to leave at the end of the contractual term.

Question 14

What are the essential conditions of an assured shorthold tenancy?

Answer 14

• It must satisfy all of the requirements for an assured tenancy under s.1 Housing Act 1988, and it does
  not come within any of the exclusions which prevent it from being ‘assured’.
• Prior to 28 February 1977, all assured shorthold tenancies had to be granted for a term certain of not
  less than six months, and a preliminary notice in the prescribed form had to be served by the landlord
  on the tenant before the tenancy was entered into.
• After 28 February 1977, no proper notice is required – all new tenancies are automatically ASTs and
  there is no minimum fixed term. Therefore, a new AST could be periodic, but the landlord cannot
  obtain an order for possession before six months.

Question 15

When does a statutory periodic assured shorthold tenancy arise?

Answer 15

Once the initial fixed term of an AST comes to an end and neither the landlord or the tenant has taken any steps to terminate it – the tenant then occupies on a statutory periodic AST.

Question 16

How is a statutory periodic assured shorthold tenancy terminated?

Answer 16

It can only be ended in accordance with the Act – the landlord has to give the tenant at least two months’ notice.

Question 17

When can an assured shorthold tenancy be recovered?

Answer 17

Either during the AST or when it ends.

Question 18

How can an AST be recovered during the term?

Answer 18

The landlord can seek possession in the same way as for an assured tenancy by serving a NOPP and satisfying one or more of the statutory grounds for possession.

Question 19

How can an AST be recovered at the end of the term?

Answer 19

The landlord must first serve a notice that he requires possession.
• The court must then make an order for possession if it is satisfied that:
• the AST has come to an end;
• no further assured tenancy is in existence other than a statutory periodic tenancy; and
• the landlord has given not less than two months’ notice stating that possession is required (s.21(1) Housing Act 1988) – in practice, this means that the landlord should serve his NOPP two months before the contractual end date.

Question 20

Who are the RAC and what do they do?

Answer 20

Rent Assessment Committee. Under s.22 of the Housing Act 1988 the Tenant can refer the rent payable to the RAC for determination. The referral must be during the first 6 months. Any rent determined by the RAC will be effective from the date decided by the RAC and will be effective for a year.