Category Archives: Introduction

Introduction

Assured Shorthold Tenancy

What exactly is meant by Assured Shorthold Tenancy?

This refers to a form of tenancy involving an arrangement between a private residential landowner and his tenant who rents his property.

It’s worth mentioning that all the tenancies created on January 15, 1989, are automatically considered Assured Shorthold Tenancies, provided no special notice is given to indicate otherwise. This means that even if there is no written agreement or oral contract between a tenant and landowner, the tenancy will be considered Assured Shorthold Tenancy. As a result, both tenants and landlords are entirely protected and secured by the Housing Act 1996 and the Housing Act 1988.

Requirements for obtaining an Assured Shorthold Tenancy

Many factors determine if a tenant or a landowner is eligible for Assured Shorthold Tenancy. If the agreement fulfils all the following criteria, it will act as an Assured Shorthold Tenancy.

If the annual rent of a tenant is less than £25,000.
Any tenant shifted to a new property on February 28, 1997, or after that.
If a tenant uses the services of a private landlord to rent a property
If a tenant has certain rights in the property for privacy, and the landlord cannot make an entry into the property without going through a mutual agreement

A tenancy will NOT be considered an Assured Shorthold Tenancy under the following conditions:

Several factors determine if a tenant or a landowner is NOT eligible for Assured Shorthold Tenancy. If the agreement fulfils all the following criteria, the tenancy will not be considered Assured Shorthold Tenancy.

If the annual rent of a property is more than £50,000
If the rent of a property is meagre, or the property receives no rent at all.
If a property acts as a holiday home
If a property is rented out to a private limited company
If the government or crown owns the property
If a property is rented out with more than 2 acres of agricultural land or comes under the agrarian tenancy.

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Housing Act 1988

The Housing Act of 1988 concerned itself with the private rented sector and was used to cover many of the UK legislation laws for this sector.

By spending more than 250 hours, the government has prepared these laws to make the private renting Sector much more efficient and fairer to the landlords. All the rulespassedwerews come to The Housing Act 1988 covers all the legal responsibilities and statutory rights for tenants and landlords.

It’s pretty standard to see conflicts between various clauses mentioned in the Tenancy Agreement and the statutory rights mentioned in the Housing Act. The main reason is that many notorious and novice landlords modify these agreements without considering the statutory rights. If this type of case arises, the tenancy agreement is deemed invalid, as the ruling law is the Housing Act, and it cannot be overruled.

The Official Housing Act 1988 can be accessed online.

Since the Housing Act 1988 was introduced, many drastic revisions have been made; prominent revisions were added to the Housing Act 1996.

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Housing Act 1996

The Housing Act 1996 consists of several revisions made to the Housing Act 1988.

Some drastic changes were introduced with the Housing Act 1996 that were applicable from February 28, 1997.

You can access the Official Housing Act 1996 online.

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Tenancy Agreement Terms and Definitions

Assured Tenancy – This tenancy gives tenants the right to remain in the rented property until the landlord approaches the court. It provides a valid reason to evict the tenants, for instance, damage to property, etc.

Assured short-hold tenancy is the most common type in the UK. This is quite similar to an Assured tenancy, but the only exception is that it lasts over six months. This type of tenancy is prevalent as it allows landlords a facility to give any notice to end any agreement quickly.

Buy to Let (BTL) – This is more of an investment strategy whereby individuals buy a residential property or home to let it gain profits.

Buy to share (BTS) – This is a practice whereby individuals buy a property or home to rent out some portion of the property to help them pay the mortgage.

Deposit – A deposit is a fixed amount of money generally taken by letting agents or landlords at the beginning of a tenancy period to cover future losses or expenses on the part of tenants, for instance, damage and rent arrears.

DSS: Claiming state benefit from housing benefit.

Guarantor – Individuals who provide the landowner with a warranty about the tenant.

House in Multiple Occupations (HMO) – These are the forms of accommodations many people share.

Inventory – A complete list of all the items in the property, including their usage conditions.

Landlord – Refers to the individual who owns the property or the one whom you pay your rent. This may also refer to the property-free holder that provides you tenure for leasehold.

Live-in landlord – A property holder who lives in a property but rents out a portion of this property to tenants.

Live-out landlord – A type of landlord who doesn’t live in a property he rents to his tenants.

Lodger – A tenant who rents a room in somebody else’s home, generally in a live-in landlord’s home.

Per Calendar Month (PCM) – This term is used for the time when you pay your monthly rent.

Sublet – This is an agreement whereby the existing tenant rents out a portion of the property to another.

Rent – Total amount of money charged monthly by a landowner to rent out his/her property.

Tenancy – An act of occupancy when you officially become a tenant.

Tenancy Agreement: A type of Legal agreement between the tenant and landlord. This can be both verbal and written.

Tenancy Deposit Scheme – A scheme introduced by the government in 2007 to safeguard the deposits given by tenants to the landlords.

Tenant – A tenant uses someone’s building to live and pays a fixed monthly rent.

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