SUMMARY OF THE LAW REGARDING LETTING

The 1988 Housing Act came into effect on 15th January 1989 and with some minor exceptions, tenants of residential property, furnished or unfurnished, will hold basically one of two types of tenancy.

1. Assured Shorthold Tenancy

This type of tenancy was created to appeal to those landlords or investors who would otherwise have limited grounds for possession at the expiry of a tenancy.
This new type of Agreement replaces the previous Protected Short hold Tenancy and includes the following features:
The tenant has no security of tenure beyond the term created and following the correct service of a Notice to Quit, a court must award possession.
The tenancy must be for at least six months and the landlord will be unable to seek possession during this period unless rent arrears accrue or the terms and conditions of the Agreement are not complied with.
Tenants do have the right to refer a rent to the Rent Assessment Committee, who have the power to determine a market rent.
Appropriate Housing Act Notices must be served prior to a tenancy commencing and to bring a tenancy to an end. To Bring a tenancy to an end not less than two months notice is required.
To bring possession proceedings for arrears of rent, not less than two weeks notice is required.
If a property is let for a fixed term of twelve months certain, and you do decide you require your property back at the expiry of the agreement, two months notice will need to be served on the tenants prior to the commencement of the tenth month.
However, after the initial agreement has expired and if the required notice has not been issued your tenants may hold over a Statutory Periodic Tenancy indefinitely on month to month basis. Possession can still be obtained by the issuing of two months Notice, although your tenants can give one months notice in writing to leave at any time.

Please Note: It is DWELLINGS PROPERTY MANAGEMENT's usual practice to assist with rehousing of tenants when a landlord requires their property back.

2. Assured Tenancy

Generally this type of tenancy will only be created where the landlord is letting his only principle home.
If a landlord of a property is currently serving as a member of Her Majesty's Armed Forces away from home, or a property has been purchased for retirement, a court would require, in case of possession proceedings, the landlord to demonstrate his intentions to occupy the property as his principle home.

Please Note: Possession would not be available if a landlord only intended to sell the property without first occupying it as their principle home. Therefore, to overcome this problem, such cases are dealt with by way of Assured Shorthold Tenancy.

Other Features of Assured Tenancies

The contractual rent reserved during a fixed term is enforceable.
At the expiration of the fixed term or twelve months (whichever is greater), if the landlord seeks to increase the rent the tenant has the legal right to refer to a Rent Assessment Committee.

3. Tenancies which cannot be Assured Tenancies

Tenancies created prior to the 15th January 1989 Housing Act, including agreements made prior to the date even if effective after the date. Such Tenancies will continue to be subject to previous legislation except that any tenancy following a previous Protected Shorthold Tenancy will be converted to an Assured Shorthand Tenancy.
Tenancies created by Local Authorities or by the Crown.
Tenancies to Local Authorities, the Crown or companies.
A tenancy under which a property had a rateable value in excess of £750.00.

4. General Note

With a few minor exceptions, tenants of residential property, whether furnished or unfurnished, hold Assured Tenancies, and in all cases if a tenant will not vacate at the correct time, possession can only be obtained by way of a court order.
The general effect of the Acts is to require tenants to comply with the contractual obligations under the terms of the tenancy or otherwise risk losing their homes.