Tenancy agreements for renting in the UK

 

Tenancy Agreements

A tenancy agreement is a legal agreement in writing that sets out the rights and responsibilities of both landlord and tenant. It will contain details such as the length of the agreement, the rent payable and what is and isn't allowed in the property eg pets.

Types of tenancy agreement

There are different types of tenancy agreement and most people have one of three types:

  • an assured shorthold tenancy
  • an assured tenancy
  • a regulated (or 'protected' tenancy)

The type of tenancy you have depends on when it was taken out. More details can be found on the Community Legal Service, http://www.clsdirect.org.uk

Private landlords

Private landlords will normally rent their property at the market rate and their right to increase the rent depends on the type of tenancy. The tenancy agreement should set out:

  • the date the tenancy began
  • the rent and when it is payable
  • any rent review arrangements
  • the length of any fixed term

After a year the landlord can increase the rent by giving at least one month's notice. The amount can be challenged if it is felt to be too high by contacting the local Rent Assessment Committee. Its number will be listed in the phone book.

Council and social housing tenancies

If your council or registered social landlord wants to increase your rent, it will usually give you notice in writing. If you pay rent weekly then you should expect four weeks notice. If you think the rent increase is too high contact your local council.

Housing association tenancies that started before 15 January 1989 are protected by ‘fair rent’ controls. This means that any increases have to be fixed by the Rent Service. If you think the rent is too high you can apply to them. Other tenancies with housing associations will have the same rights as private tenants.

Help with your rent

If you have a low income you may be able to get Housing Benefit to help pay your rent. Your savings as well as your income will be used to work out whether you can get benefit and if so how much.

You can find out more from your local council or the Department for Work and Pensions where you can also download a Housing Benefit claim form. 

Which is appropriate for a Short Term Residential?

There is an alternative option available to protect the interests of the landlord. However, the legal protection afforded to the landlord by virtue of a long and complicated contract is done at the expense of the tenant. The lengthy agreement leaves the tenant out in the cold as it were. Matters are further complicated by the plethora of different agreements drawn up by Estate agents, large companies and private landlords. Every type of agreement brings to the fore complex legal problems which require clarification in advance of the agreement being signed.

So what exactly is the answer in respect of these tenancy agreements?

The law commission's idea is to adopt a "CLEAN SHEET" policy for the entire rental sector. All the different agreements are to be scrapped and replaced with two agreements as follows:-

1) One covering the council or local Government tenants and housing association tenants 2) The second tenancy agreement for the landlord sector (private landlords, businesses letting residential properties and other commercial concerns such as providers of residential accommodation to students and health care key workers etc)

The new private landlord sector agreement being proposed will mirror the existing short hold tenancy agreement; the existing short hold tenancy being for a 6 months duration. The new agreement being proposed will be for a 12 month duration instead but with a break clause after 6 months. It gives the tenant the option to walk out of the contract at the mid point. This change in law will take affect by 2007.

What will this change do for the sector?

Current contract price ranges from under £5 for something off the shelf to £80 which is done for a landlord by a professional. Even though £80 for a 5 page contract seems a lot but it provides both the experience and inexperience landlord with a level of legal protection which is a must. It is money well spent because such a contract will pre-empt potentially complex legal problems from becoming huge obstacles.

The new revised and simplified tenancy contract will make the renting easier, cheaper as well as making it more flexible both for the landlord and the tenant. The only drawback is that the new contract will only cover the rentals of £25,000 per year. The other caveat being that the rented property must be the main residence of the tenant for this new contract to form the basis of the agreement. In all other respects the contract is the same as the former short hold agreement off the shelf.

Finally, a simple contract will put an end to the interpretation industry. There are armies of experts who make it their business to interpret different clauses of the contract and assign these clauses meanings which were not originally assigned or intended. The overhauling of this aspect of tenancy is long overdue and the new contract will address that very issue.

Tenant check services for landlords, everything from CCJ history through to electoral register checks and overall risk ratings.

Services to stop house repossession   options include sell and rent back with flexible terms for renting.