Tenancy Agreement outside Housing Act 1988
If a residential tenancy is not an AST, the common law rules apply to the tenancies. However, the Eviction Protection Act 1977, the Landlords and Tenants Act 1985 and sometimes the Consumer Rights Act 2015 still apply. This means landlords still face restrictions on what to include in a lease and how to terminate rentals. For all these reasons and many more, it is important for landlords to ensure that they enter into agreements tailored to their needs, and it is not possible to do so without understanding when a tenancy does not fall under the Housing Act 1988 and is therefore not a guaranteed short-term rental. A tenancy in which farmland of more than two acres is leased with the residential building cannot be secured. [28] In addition, a rented residential building with land of less than two hectares whose main purpose is not to create a house cannot be secured. If the main purpose is to provide a house, the plot is treated as part of the residential building and the rental is insured. [29] A tenancy to which Part 2 of the Landlords and Tenants Act, 1954 applies cannot be a secured tenancy. This includes all rentals where the property is used for business purposes (with the exception of a home business rental). [20] Use by enterprises must be a major reason for employment rather than an accessory one.
For example, if a physician had been given permission to operate a home-based business, but in fact had only occasionally seen a patient at home in an emergency and used the telephone for his or her profession, it was assumed that it was a regulated tenancy and not a commercial tenancies. [21] Schedule 1 of the Housing Act 1988 specifies the situations in which asT cannot occur. The main exceptions for private landlords are as follows: when the Crown Estate Commissioners transferred their housing stock to a housing association after January 15, 1989, the High Court held that those of its tenants who were tenant-regulated tenants became insured tenants of the housing association. [38] If the tenant of residential buildings is a business, the tenancy is a common law tenancy. There is no separate category of “business rentals” in the law, but it is a useful term to describe a facility where the tenant is the business and the business allows employees to live in the property. For the above to apply, the new tenancy must be granted to a person who was (alone or jointly with others) a protected tenant of the landlord (or one of the co-owners) granting the new tenancy. It is not necessary that the property is the same. [9] However, legislation allowing for continuity of regulated rental status[10] only applies to a person who was a protected or statutory tenant before the Housing Act 1988 came into force. It was thought that regulated tenant status could be passed on to new roommates, but this is only possible if one of the roommates was a regulated tenant before the Housing Act 1988. [11] A decision of the Court of Appeal[22] considered the status of a tenancy that began in 1995 and was used for mixed residential and commercial purposes under Part 2 of the Landlords and Tenants Act, 1954.
The ownership procedure was initiated after the tenant was in default of rent; the District Court ordered the tenant to hand over the property to the owner. The ownership order was set aside on appeal, the tenant successfully argued that the tenancy was a secure and protected tenancy under the Housing Act 1988. However, the landlord appealed; The Court of Appeal held that, despite mixed objectives, the tenancy was a commercial tenancy that fell under the Landlords and Tenants Act, 1954 and reinstated the previous ownership order. A rental consisting of or including premises authorized for the sale of intoxicating alcohol intended for consumption on site cannot be guaranteed. [26] It can be argued that a rental of one or more rooms above a pub does not fall within this exception. However, there is no case-law on this point. Since 1 January 1991, the Landlords and Tenants Act 1954 has protected new commercial leases of licensed premises. The Landlord and Tenant Act of 1954 therefore protects pub owners who live on the premises. [27] If a tenancy is not a tenancy under the Housing Act 1988, the agreement is simply a lease outside of the Housing Act. These are court-recognized contracts to which none of the provisions of the Housing Act 1988 apply.
One of the most important considerations for you as a landlord is to ensure that none of the clauses in your lease violate the legal rights of your tenants, as set out in the law. If this is the case, the entire agreement could become invalid because the law is a “dominant law” and cannot be replaced. Prior to 1988, most rentals were “protected and legal,” meaning they were heavily weighted in favor of tenants. Under the terms of these agreements, tenants had the right to stay indefinitely in a rented property and could even pass it on to their children or other family members, which meant that it was virtually impossible for landlords to return to the property unless the tenant decided to leave. A guaranteed short-term rental can only occur if the requirements of section 1 of the Housing Act 1988 are met. First of all, there must be a rental, as opposed to a license. However, it`s hard to set up a license instead of a rental, and just writing that things are licenses doesn`t mean they are. .