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Part I Security of Tenure for Residential Tenants

Annotations:

Modifications etc. (not altering text)

C1Pt. I (ss. 1–22) superseded in part by Local Government and Housing Act 1989 (c. 42, SIF 75:1), s. 186(1)

C2Pt. I (ss. 1–22) applied by Local Government and Housing Act 1989 (c. 42, SIF 75:1), s. 186, Sch. 10 paras. 21(2), 22

C3Pt. I (ss. 1–22) modified by S.I. 1990/776, arts. 2(2), (5)(2)(f)

C4Pt. I amended by Housing Act 1980 (c. 51), Sch. 8 paras. 9, 10

Security of tenure for tenants under ground leases, etc

1 Protection of residential tenants on termination of long tenancies at low rents

On the termination in accordance with the provisions of this Part of this Act of a tenancy to which this section applies the tenant shall be entitled to the protection of the [F1Rent Act] subject to and in accordance with those provisions.

Annotations:

Amendments (Textual)

F1Words substituted by Rent Act 1968 (c. 23), Sch. 15 (continued by Rent Act 1977 (c. 42), Sch. 24 para. 30)

Modifications etc. (not altering text)

C1S. 1 excluded by Local Government and Housing Act 1989 (c. 42, SIF 75:1), s. 186(2)(3)

S. 1 excluded (1.11.1993) by 1993 c. 28, s. 59(2)(b)(i); S.I. 1993/2134, art. 5

C2S. 1 excluded by Leasehold Reform Act 1967 (c. 88), s. 16(1)(c)(d)

2 Tenancies to which s. 1 applies

(1)The foregoing section applies to any long tenancy [F1at a low rent], being a tenancy as respects which for the time being the following condition (hereinafter referred to as “the qualifying condition”) is fulfilled, that is to say that the circumstances (as respects the property comprised in the tenancy, the use of that property, and all other relevant matters) are such that on the coming to an end of the tenancy at that time the tenant would, [F2if the tenancy had not been one at a low rent], be entitled by virtue of the [F3Rent Act] to retain possession of the whole or part of the property comprised in the tenancy.

[F4(1A)For the purpose only of determining whether the qualifying condition is fulfilled with respect to a tenancy which is entered into on or after 1st April 1990 (otherwise than, where the property comprised in the tenancy had a rateable value on 31st March 1990, in pursuance of a contract made before 1st April 1990), for section 4(4)(b) and (5) of that Act substitute—

(b)on the date the contract for the grant of the tenancy was made (or, if there was no such contract, on the date the tenancy was entered into) R exceeded £25,000 under the formula—

where—

P is the premium payable as a condition of the grant of the tenancy (and includes a payment of money’s worth) or, where no premium is so payable, zero,

I is 0.06, and

T is the term, expressed in years, granted by the tenancy (disregarding any right to terminate the tenancy before the end of the term or to extend the tenancy)..]

(2)At any time before, but not more than twelve months before, the term date application may be made to the court as respects any long tenancy [F5at a low rent], not being at the time of the application a tenancy as respects which the qualifying condition is fulfilled, for an order declaring that the tenancy is not to be treated for the purposes of this Part of this Act as a tenancy to which the foregoing section applies; and where such an application is made—

(a)the court, if satisfied that the tenancy is not likely, immediately before the term date, to be a tenancy to which the foregoing section applies, but not otherwise, shall make the order;

(b)if the court makes the order, then notwithstanding anything in subsection (1) of this section the tenancy shall not thereafter be treated as a tenancy to which the foregoing section applies.

(3)Anything authorised or required to be done under the following provisions of this Part of this Act in relation to tenancies to which the foregoing section applies shall, if done before the term date in relation to a long tenancy [F5at a low rent], not be treated as invalid by reason only that at the time at which it was done the qualifying condition was not fulfilled as respects the tenancy.

(4)In this Part of this Act the expression “long tenancy” means a tenancy granted for a term of years certain exceeding twenty-one years, whether or not subsequently extended by act of the parties or by any enactment.

[F6(5)In this Part of this Act the expression “tenancy at a low rent” means a tenancy the rent payable in respect whereof (or, where that rent is a progressive rent, the maximum rent payable in respect whereof) is less than,—

(a)where the tenancy was entered into before 1st April 1990 or (where the property comprised in the tenancy had a rateable value on 31st March 1990) is entered into on or after 1st April 1990 in pursuance of a contract made before that date, two-thirds of the rateable value of the property; and for the purposes of this subsection the rateable value of the property is that which would be taken as its rateable value for the purposes of section 5(1) of the Rent Act M11977; and,

(b)where the tenancy is entered into on or after 1st April 1990 (otherwise than, where the property comprised in the tenancy had a rateable value on 31st March 1990, in pursuance of a contract made before 1st April 1990), is payable at a rate of,—

(i)£1,000 or less a year if the property is in Greater London, and

(ii)£250 or less a year if the property is elsewhere.]

(6)In this Part of this Act the expression “term date”, in relation to a tenancy granted for a term of years certain, means the date of expiry of the term.

[F7(7)In determining whether a long tenancy is, or at any time was, a tenancy at a low rent there shall be disregarded such part (if any) of the sums payable by the tenant as is expressed (in whatever terms) to be payable in respect of rates, [F8council tax,] services, repairs, maintenance, or insurance, unless it could not have been regarded by the parties as a part so payable.

In this section “long tenancy” does not include a tenancy which is, or may become, terminable before the end of the term by notice given to the tenant.]

[F9(8)The Secretary of State may by order replace any amount referred to in subsections (1A) and (5)(b) of this section and the number in the definition of “I” in subsection (1A) by such amount or number as is specified in the order; and such an order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.]

Annotations:

Amendments (Textual)

F1Words re-inserted by Leasehold Reform Act 1967 (c. 88), s. 39(2), Sch. 5 para. 2(a)

F2Words restored by Leasehold Reform Act 1967 (c. 88), s. 39(2), Sch. 5 para. 2(a)

F3Words substituted by Rent Act 1968 (c. 23), Sch. 15 (continued by Rent Act 1977 (c. 42), Sch. 24 para. 30)

F4S. 2(1A) inserted by S.I. 1990/434, reg. 2, Sch. para. 2

F5Words re-inserted by Leasehold Reform Act 1967 (c. 88), s. 39(2), Sch. 5 para. 2(a)

F6S. 2(5) substituted by S.I. 1990/434, reg. 2, Sch. para. 3

F7S. 2(7) added by Rent Act 1977 (c. 42), s. 155(2), Sch. 23 para. 13

F8Words in s. 2(7) inserted (1.4.1993) by S.I. 1993/651, art. 2(1), Sch. 1 para. 1

F9S. 2(8) inserted by S.I. 1990/434, reg. 2, Sch. para. 4

Marginal Citations

M11977 c.42 (75:3).

Continuation and termination of tenancies to which s. 1 applies

3 Continuation of tenancies to which s. 1 applies

(1)A tenancy which is current immediately before the term date and is then a tenancy to which section one of this Act applies shall not come to an end on that date except by being terminated under the provisions of this Part of this Act, and if not then so terminated shall subject to those provisions continue until so terminated and shall, while continuing by virtue of this section, be deemed (notwithstanding any change in circumstances) to be a tenancy to which section one of this Act applies.

(2)Where by virtue of the last foregoing subsection a tenancy is continued after the term date, then—

(a)if the premises qualifying for protection are the whole of the property comprised in the tenancy, the tenancy shall continue at the same rent and in other respects on the same terms as before the term date;

(b)if the premises qualifying for protection are only part of the property comprised in the tenancy, the tenancy while continuing after the term date shall have effect as a tenancy of those premises to the exclusion of the remainder of the property, and at a rent to be ascertained by apportioning the rent payable before the term date as between those premises and the remainder of the property, and in other respects on the same terms (subject to any necessary modifications) as before the term date.

(3)In this Part of this Act the expression “the premises qualifying for protection” means the aggregate of the premises of which, [F1if the tenancy in question were not one at a low rent], the tenant would be entitled to retain possession by virtue of the [F2Rent Act] after the coming to an end of the tenancy at the term date.

(4)Any question arising under paragraph (b) of subsection (2) of this section as to the premises comprised in a tenancy continuing as mentioned in that paragraph, as to the rent payable in respect of a tenancy so continuing, or as to any of the terms of such a tenancy, shall be determined by agreement between the landlord and the tenant or, on the application of either of them, by the court.

Annotations:

Amendments (Textual)

F1Words restored by Leasehold Reform Act 1967 (c. 88), s. 39(2), Sch. 5 para. 2(b)

F2Words substituted by Rent Act 1968 (c. 23), Sch. 15 (continued by Rent Act 1977 (c. 42), Sch. 24 para. 30)

4 Termination of tenancy by the landlord

(1)The landlord may terminate a tenancy to which section one of this Act applies by notice given to the tenant in the prescribed form specifying the date at which the tenancy is to come to an end (hereinafter referred to as “the date of termination”), being either the term date of the tenancy or a later date:

Provided that this subsection has effect subject to the provisions of this Part of this Act as to the annulment of notices in certain cases and subject to the provisions of Part IV of this Act as to the interim continuation of tenancies pending the disposal of applications to the court.

(2)A notice under the last foregoing subsection shall not have effect unless it is given not more than twelve nor less than six months before the date of termination specified therein.

(3)A notice under subsection (1) of this section shall not have effect unless it specifies the premises which the landlord believes to be, or to be likely to be, the premises qualifying for protection and either—

(a)it contains proposals for a statutory tenancy, as defined by subsection (3) of section seven of this Act, or

(b)it contains notice that, if the tenant is not willing to give up possession at the date of termination of the tenancy, of all the property then comprised in the tenancy, the landlord proposes to apply to the court, on one or more of the grounds mentioned in section twelve of this Act, for possession of the property comprised in the tenancy, and states the ground or grounds on which he proposes to apply.

(4)A notice under subsection (1) of this section shall invite the tenant, within two months after the giving of the notice, to notify the landlord in writing whether he is willing to give up possession as mentioned in paragraph (b) of the last foregoing subsection.

(5)A notice under subsection (1) of this section containing proposals such as are mentioned in paragraph (a) of subsection (3) of this section is hereinafter referred to as a “landlord’s notice proposing a statutory tenancy”, and a notice under subsection (1) of this section not containing such proposals is hereinafter referred to as a “landlord’s notice to resume possession”.

(6)References in this Part of this Act to an election by the tenant to retain possession are references to his notifying the landlord, in accordance with subsection (4) of this section, that he will not be willing to give up possession.

Annotations:

Modifications etc. (not altering text)

C1S. 4 excluded by Leasehold Reform Act 1967 (c. 88), ss. 22(1), 34, Sch. 3 para. 2(2)

5 Termination of tenancy by the tenant

(1)A tenancy to which section one of this Act applies may be brought to an end at the term date thereof by not less than one month’s notice in writing given by the tenant to the immediate landlord.

(2)A tenancy continuing after the term date thereof by virtue of section three of this Act may be brought to an end at any time by not less than one month’s notice in writing given by the tenant to the immediate landlord, whether the notice is given after or before the term date of the tenancy.

(3)The fact that the landlord has given a notice under subsection (1) of the last foregoing section, or that the tenant has elected to retain possession, shall not prevent the tenant from giving a notice terminating the tenancy at a date earlier than the date of termination specified in the landlord’s notice.

Statutory tenancies arising under Part I

6 Application of Rent Acts where tenant retains possession

(1)Where a tenancy is terminated by a landlord’s notice proposing a statutory tenancy [F1the Rent Act shall apply], subject as hereinafter provided, as if the tenancy (hereinafter referred to as “the former tenancy”)—

(a)had been a tenancy of the dwelling-house, as hereinafter defined, and

[F2(b)had not been a tenancy at a low rent and, except as regards the duration of the tenancy and the amount of the rent, had been a tenancy on the terms agreed or determined in accordance with the next following section and no other terms.]

(2)The [F1Rent Act] shall not apply as aforesaid, if at the end of the period of two months after the service of the landlord’s notice the qualifying condition was not fulfilled as respects the tenancy, unless the tenant has elected to retain possession.

(3)In this Part of this Act the expression “the dwelling-house” means the premises agreed between the landlord and the tenant or determined by the court,—

(a)if the agreement or determination is made on or after the term date of the former tenancy, to be the premises which as respects that tenancy are the premises qualifying for protection,

(b)if the agreement or determination is made before the term date of the former tenancy, to be the premises which are likely to be the premises qualifying for protection.

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

Annotations:

Amendments (Textual)

F1Words substituted by Rent Act 1968 (c. 23), Sch. 15 (continued by Rent Act 1977 (c. 42), Sch. 24 para. 30)

F2S. 6(1)(b) substituted by Leasehold Reform Act 1967 (c. 88), s. 39(2), Sch. 5 para. 3(1)(a)

F3Ss. 6(4), 9(5) repealed by Leasehold Reform Act 1967 (c. 88), Sch. 5, Sch. 7 Pt. I

F4Ss. 6(5), 11 repealed by Rent Act 1957 (c. 25), Sch. 8 Pt. I

7 Settlement of terms of statutory tenancy

(1)The . . . F1 terms on which the tenant and any successor to his statutory tenancy may retain possession of the dwelling-house during that period, [F2other than the amount of the rent] shall be such as may be agreed between the landlord and the tenant or determined by the court . . . F1

(2)A landlord’s notice proposing a statutory tenancy and anything done in pursuance thereof shall cease to have effect if by the beginning of the period of two months ending with the date of termination specified in the notice any of the following matters, that is to say,—

(a)what premises are to constitute the dwelling-house;

(b)[F3as regards the rent] of the dwelling-house during the period of the statutory tenancy, the intervals at which instalments of that rent are to be payable, and whether they are to be payable in advance or in arrear;

(c)whether any, and if so what, initial repairs (as defined in the next following section) are to be carried out on the dwelling-house;

(d)whether initial repairs to be so carried out are to be carried out by the landlord or by the tenant, or which of them are to be carried out by the landlord and which by the tenant; and

(e)the matters required by the next following section to be agreed or determined in relation to repairs before the beginning of the period of the statutory tenancy,

has not been agreed between the landlord and the tenant and no application has been made by the beginning of the said period of two months for the determination by the court of such of those matters as have not been agreed:

Provided that this subsection shall not have effect if at the end of the period of two months after the service of the landlord’s notice the qualifying condition was not fulfilled as respects the tenancy unless the tenant has elected to retain possession.

(3)In paragraph (a) of subsection (3) of section four of this Act, the expression “proposals for a statutory tenancy” means [F2proposals as to the rent of the dwelling-house during the period of the statutory tenancy] proposals as to the matters specified in paragraphs (b) to (e) of the last foregoing subsection, and such other proposals (if any) as to the terms mentioned in subsection (1) of this section as the landlord may include in his notice.

(4)Any such proposals—

(a)shall be made, and be expressed to be made, on the assumption that the dwelling-house will be the premises specified in the landlord’s notice in accordance with subsection (3) of section four of this Act;

(b)shall not be treated as failing to satisfy the requirements of the said subsection (3) by reason only of a difference between the premises to which the proposals relate and the premises subsequently agreed or determined to be the dwelling-house,

and in the event of any such difference the landlord shall not be bound by his proposals notwithstanding that they may have been accepted by the tenant.

(5)An application for securing a determination by the court in accordance with the foregoing provisions of this section shall be made by the landlord, and—

(a)shall be made during the currency of the landlord’s notice proposing a statutory tenancy and not earlier than two months after the giving thereof, so however that if the tenant has elected to retain possession it may be made at a time not earlier than one month after the giving of the notice;

(b)subject to the provisions of the last foregoing subsection, shall not be made for the determination of any matter as to which agreement has already been reached between the landlord and the tenant.

(6)In this Part of this Act the expression “the period of the statutory tenancy” means the period beginning with the coming to an end of the former tenancy and ending with the earliest date by which the tenant, and any successor to his statutory tenancy, have ceased to retain possession of the dwelling-house by virtue of the [F4Rent Act].

Annotations:

Amendments (Textual)

F1Words repealed by Rent Act 1957 (c. 25), Sch. 8 Pt. I

F2Words inserted by Leasehold Reform Act 1967 (c. 88), s. 39(2), Sch. 5 para. 3(1)(b)

F3Words substituted by Leasehold Reform Act 1967 (c. 88), s. 39(2), Sch. 5 para. 3(1)(b)

F4Words substituted by Rent Act 1968 (c. 23), Sch. 15 (continued by Rent Act 1977 (c. 42), Sch. 24 para. 30)

Modifications etc. (not altering text)

C1S. 7(2) modified (1.11.1993) by 1993 c. 28, s. 42, Sch. 12 Pt. I para. 2(6); S.I. 1993/2134, art. 5

8 Provisions as to repairs during period of statutory tenancy

(1)Where it is agreed between the landlord and the tenant, or determined by the court, that the terms mentioned in subsection (1) of the last foregoing section shall include the carrying out of specified repairs (hereinafter referred to as “initial repairs”), and any of the initial repairs are required in consequence of failure by the tenant to fulfil his obligations under the former tenancy, the landlord shall be entitled to a payment (hereinafter referred to as a “payment for accrued tenant’s repairs”) of an amount equal to the cost reasonably incurred by the landlord in ascertaining what repairs are required as aforesaid and in carrying out such of the initial repairs as are so required and as respects which it has been agreed or determined as aforesaid that they are to be carried out by the landlord, excluding any part of that cost which is recoverable by the landlord otherwise than from the tenant or his predecessor in title.

(2)A payment for accrued tenant’s repairs may be made either by instalments or otherwise, as may be agreed or determined as aforesaid; and the provisions of the First Schedule to this Act shall have effect as to the time for, and method of, recovery of such payments, the persons from whom they are to be recoverable, and otherwise in relation thereto.

(3)The obligations of the landlord and the tenant as respects the repair of the dwelling-house during the period of the statutory tenancy shall, subject to the foregoing provisions of this section, be such as may be agreed between them or as may be determined by the court.

(4)The matters referred to in paragraph (e) of subsection (2) of the last foregoing section are;

(a)which of the initial repairs (if any) are required in consequence of failure by the tenant to fulfill his obligations under the former tenancy and, where there are any initial repairs so required, the amount to be included in the payment for accrued tenant’s repairs in respect of the cost incurred by the landlord in ascertaining what initial repairs are so required;

(b)the estimated cost of the repairs so required, in so far as they are to be carried out by the landlord;

(c)whether any payment for accrued tenant’s repairs is to be payable by instalments or otherwise, and if by instalments the amount of each instalment (subject to any necessary reduction of the last), the time at which the first is to be payable and the frequency of the instalments;

(d)whether there are to be any, and if so what, obligations as respects the repair of the dwelling-house during the period of the statutory tenancy, other than the execution of initial repairs.

(5)The provisions of the Second Schedule to this Act shall have effect as respects cases where the landlord or the tenant fails to carry out initial repairs, as to the cost of carrying out such repairs in certain cases and as to the making of a record, where required by the landlord or by the tenant, of the state of repair of the dwelling-house.

9 Principles to be observed in determining terms of statutory tenancy as to repairs and rent

(1)Where it falls to the court to determine what initial repairs (if any) should be carried out by the landlord, the court shall not, except with the consent of the landlord and the tenant, require the carrying out of initial repairs in excess of what is required to bring the dwelling-house into good repair or the carrying out of any repairs not specified by the landlord in his application as repairs which he is willing to carry out.

(2)In the last foregoing subsection the expression “good repair” means good repair as respects both structure and decoration, having regard to the age, character and locality of the dwelling-house.

(3)Notwithstanding anything in subsection (1) of section seven of this Act, the court shall not have power to determine that any initial repairs shall be carried out by the tenant except with his consent.

(4)Any obligations imposed by the court under this Part of this Act as to keeping the dwelling-house in repair during the period of the statutory tenancy shall not be such as to require the dwelling-house to be kept in a better state of repair than the state which may be expected to subsist after the completion of any initial repairs to be carried out or, in the absence of any agreement or determination requiring the carrying out of initial repairs, in a better state of repair than the state subsisting at the time of the court’s determination of what obligations are to be imposed.

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

Annotations:

Amendments (Textual)

F1Ss. 6(4), 9(5) repealed by Leasehold Reform Act 1967 (c. 88), Sch. 5, Sch. 7 Pt. I

10 Provisions as to liabilities under tenant’s covenants in former lease

(1)If on the termination of the former tenancy the tenant retains possession of the dwelling-house by virtue of section six of this Act, any liability, whether of the tenant or of any predecessor in title of his, arising under the terms of the former tenancy shall be extinguished:

Provided that this subsection shall not affect any liability—

(a)for failure to pay rent or rates or to insure or keep insured, or

(b)in respect of the use of any premises for immoral or illegal purposes,

or any liability under the terms of the former tenancy in so far as those terms related to property other than the dwelling-house.

(2)During the period of the statutory tenancy no order shall be made for the recovery of possession of the dwelling-house from the tenant [F1in any of the circumstances specified in Cases 1 to 3 in [F2Schedule 15] to the Rent Act] (which relate to the recovery of possession where an obligation of the tenancy has been broken or where certain specified acts or defaults have been committed) by reason only of any act or default which occurred before the date of termination of the former tenancy.

Annotations:

Amendments (Textual)

F1Words substituted by Rent Act 1968 (c. 23), Sch. 15 (continued by Rent Act 1977 (c. 42), Sch. 24 para. 30)

F2Words substituted by Rent Act 1977 (c. 42), s. 155(2), Sch. 23 para. 14

11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

Annotations:

Amendments (Textual)

F1Ss. 6(5), 11 repealed by Rent Act 1957 (c. 25), Sch. 8 Pt. I

Provisions as to possession on termination of long tenancy

12 Grounds for resumption of possession by landlord

(1)The grounds on which a landlord may apply to the court for possession of the property comprised in a tenancy to which section one of this Act applies are the following:—

(a)that for purposes of redevelopment after the termination of the tenancy the landlord proposes to demolish or reconstruct the whole or a substantial part of the relevant premises;

(b)the grounds specified in the Third Schedule to this Act (which correspond, subject to the necessary modifications, to the [F1 [F2Cases 1 to 9 in Schedule 15] to the Rent Act which specify circumstances in which a court may make an order for possession under that Act]).

(2)In this section the expression “the relevant premises” means—

(a)as respects any time after the term date, the premises of which, [F3if the tenancy were not one at a low rent], the tenant would have been entitled to retain possession by virtue of the [F1Rent Act] after the coming to an end of the tenancy at the term date;

(b)as respects any time before the term date, the premises agreed between the landlord and the tenant or determined by the court to be likely to be the premises of which, [F3if the tenancy were not one at a low rent], the tenant would be entitled to retain possession as aforesaid.

Annotations:

Amendments (Textual)

F1Words substituted by Rent Act 1968 (c. 23), Sch. 15 (continued by Rent Act 1977 (c. 42), Sch. 24 para. 30)

F2Words substituted by Rent Act 1977 (c. 42), s. 155(2), Sch. 23 para. 15

F3Words restored by Leasehold Reform Act 1967 (c. 88), s. 39(2), Sch. 5 para. 2(c)

Modifications etc. (not altering text)

C1S. 12(1)(a) modified by Leasehold Reform Act 1967 (c. 88), ss. 35(4)(a), 38(1)