Housing Act 1996

   Provisions relating to assured and assured shorthold tenancies

Commencement:

The amended provisions were introduced with the Local Government and Housing Act 1989.

Scope:

These provisions relate to letting privately owned property on assured or assured shorthold tenancies and are intended to simplify the system under the Housing Act 1988.  This Act applies to England and Wales only.

Key Provisions:

Assured Shorthold Tenancies

Section 96 inserts a new s19A into the Housing Act 1988 providing for a new type of assured shorthold where it will no longer be a requirement to serve a notice of assured shorthold tenancy before the commencement of such a tenancy.  All assured tenancies entered into on or after 28th February 1997 will automatically be an assured shorthold tenancy unless a notice is served or provision is made in the tenancy agreement stating that the tenancy is not to be an assured shorthold tenancy.

There is no minimum time period for granting an assured shorthold tenancy, although a landlord cannot recover possession within six months of the start of an assured shorthold tenancy.  A landlord cannot obtain a court order for possession even if the fixed term is for less than six months, unless the tenants are in breach of their tenancy agreement for some other reason (e.g. rent arrears).

Rent Arrears

The mandatory ground for possession, ground 8 of Schedule 2 of the Housing Act 1988 has been amended.  From the 28th of February 1997, the court must make an order for possession if at the time of the service of the notice and at the time of the hearing there is at least 8 weeks rent owing instead of 13 for weekly tenancies and 2 months instead of 3 months for monthly tenancies.  The new ground 8 reads as follows:-

Both at the date of the service of the notice under Section 8 of this Act relating to the proceedings for possession and at the date of the hearing -

(a)   if rent is payable weekly or fortnightly, at least eight weeks' rent is unpaid;

(b)   if rent is payable monthly, at least two months' rent is unpaid;

(c)   if rent is payable quarterly, at least one quarter's rent is more than three months in arrears; and

(d)   if rent is payable yearly, at least three months' rent is more than three months in arrears;

and for the purpose of this ground 'rent' means rent lawfully due from the tenant.

Nuisance

The discretionary ground 14 of Schedule 2 of the Housing Act 1988 has been expanded to include the behaviour of not only the tenant, but the conduct of his visitors.  The effects of the nuisance behaviour has been extended to include persons who live in the locality and not only those in adjoining properties.  This ground can now be used where a tenant has been convicted of an arrestable offence either within the house or in its locality. The new ground 14 reads as follows:

The tenant or a person residing in or visiting the dwelling-house -

(a) has been guilty of conduct causing or likely to cause a nuisance or annoyance to a person residing, visiting or otherwise engaging in a lawful activity in the locality, or

(b) has been convicted of -

(i)  using the dwelling-house or allowing it to be used for immoral or illegal purposes, or

(ii)  an arrestable offence committed in, or in the locality of , the dwelling-house.

A landlord who is relying on ground 14 may start possession proceedings as soon as the section 8 notice seeking possession has been served.

Recovery of Possession

Section 21 of the Housing Act 1988 which deals with the recovery of possession at the end of an assured shorthold tenancy is amended and now requires that the landlord provides the tenant with two months notice in writing that he requires possession.  There are no prescribed forms.

Recovery of possession under this section may not take effect within the first six months of an assured  shorthold tenancy.

Statement of Terms

Where no written tenancy agreement exists, the landlord must, on request from the tenant provide the following information in the form of a written statement within 28 days of the tenant's request;

(a)  the date on which the tenancy began

(b)  the rent payable under the tenancy and when the rent is payable

(c)  any rent review term applicable to the tenancy; and

(d)  in the case of a fixed term tenancy, the length of the fixed term.

This information was formerly  provided in the notice of assured shorthold tenancy under s20 of the Housing Act 1988.

Rent Control

Tenants of an assured shorthold tenancy may now only apply to the rent assessment committee for a determination of the rent during the initial six months of his tenancy.

Additional Grounds

Two new grounds are added to Schedule 2 of the Housing Act 1988.  Ground 14A applies to assured tenancies and can be used to obtain possession by a registered social landlord where domestic violence is involved.  Ground 17 allows possession where the landlord was induced to grant the tenancy by a false statement made by the tenant or tenants.

Sources for Further Information:

• Copy of the Housing Act 1996 available from The Stationery Office on 0870 600 5522 or their website at www.tso.co.uk
• The Letting Centre, website www.letlink.co.uk
• The Department of Communities and Local Government website: www.dclg.gov.uk

This summary is intended to assist landlords and letting agents to understand the effect of the Act.  It is not an authoritative interpretation - this is a matter for the courts.  For more detail, you should refer to the text of the Act itself.