Assured Shorthold Tenancies

The most common form of tenancy agreement used is an “Assured Shorthold” (AST) under the 1988 Housing Act (amended 1996).

An assured shorthold tenancy is a tenancy that gives a legal right to live in accommodation for a period of time. The tenancy might be set for a period (known as a fixed-term) such as six months. Or it might roll on a week-to-week or month-to-month basis (known as a periodic tenancy). This type of tenancy offers the most flexibility to both landlord and tenant; has straightforward notice procedures for bringing the tenancy to an end and a special Accelerated Possession court procedure should tenants fail to vacate.

A tenancy agreement is a legally binding contract between a landlord and tenant that sets out both the legal and contractual responsibilities and obligations of the two parties. It should be written in plain and intelligible language (no unnecessary jargon!) and its terms and clauses should be fair and balanced, taking account of the respective positions of the parties and should not mislead about legal rights and responsibilities. Landlord and tenant should take care to individually negotiate any particular terms or conditions that are important to them or especially relevant to the particular let or property.

The Tenancy Desposit Scheme

A tenancy deposit protection scheme safeguards the tenant’s deposit. This means you can be sure that you will get your deposit back at the end of the tenancy, as long as you are entitled to it. For example, your landlord may be entitled to some of the deposit if there is any damage or if you haven’t paid all your rent. The scheme also provides a service to sort out disagreements about the deposit without going to court.

There are 3 schemes set up to deal with tenancy deposit protection:

1. The Deposit Protection Service (DPS) DPS is the only custodial deposit protection scheme (you send the deposit to them to hold). It is free to use and open to all landlords and letting agents. The service is funded from the interest earned from the deposits held. Landlords and Letting Agents will be able to register and make transactions online. The scheme has a call centre and an independent dispute resolution service. For more information visit www.depositprotection.com or call 0870 707 1707.
2. Tenancy Deposit Solutions Ltd (TDSL) TDSL is an insurance-based scheme sponsored by the National Landlord Association and administered by Hamilton Fraser Insurance Services. It is open to all Landlords and Letting Agents. A fee is payable to insure the scheme against any misappropriation of the deposit. The scheme has a call centre and an independent dispute resolution service. For more information visit www.mydeposits.co.uk or call 0871 703 0552.
3. The Tenancy Deposit Scheme (TDS) TDS is an insurance-based deposit and dispute resolution scheme. It is open to all Landlords and Letting Agents. A fee is payable to insure the scheme against any misappropriation of the deposit. The scheme has a call centre and an independent dispute resolution service. For more information visit www.tds.gb.com or call 0845 226 7837.

What happens if a deposit is not protected?

If a deposit is not protected and/or the tenant has not been notified of the prescribed information of the scheme within 14 days, then possession of the property cannot be gained by written notice (under Section 21 of the Housing Act 1988). Tenants can make an application to a county court if they believe their deposit is not being safeguarded. If the court is satisfied that a Landlord has failed to comply with these requirements then the court can order the Landlord to repay the deposit to the tenant or pay the deposit into the custodial scheme. The court must also order the Landlord to pay the tenant three times the deposit amount within 14 days of the making of the order.

Will an inventory be compulsory?

No. But landlords and tenants recognise that the use of inventories and schedules of condition can significantly reduce the disputes at the end of the tenancy.

Houses of Multiple Occupation

The legal definition of a "House in Multiple Occupation" is a "house that is occupied by persons who do not form a single household". The terms also include any purpose built or converted flat whose occupants do not form a single household.

The following are “households” for the purposes of the Housing Act 2004:

• Couples married to each other or living together as husband and wife (or in an equivalent relationship in the case of persons of the same sex)
• Relatives living together, including parents, grandparents, children (and step-children), grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins
• Half-relatives will be treated as full relatives. A foster child living with his foster parent is treated as living in the same household as his foster parent.

Therefore three friends sharing together are considered as three households.

Under the changes in the Housing Act 2004, if you let a property which is one of the following types it is a House in Multiple Occupation:

• An entire house or flat which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet.
• A house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to 3 or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities.
• A converted house which contains one or more flats which are not wholly self-contained (i.e. the flat does not contain within it a kitchen, bathroom and toilet) and which is occupied by 3 or more tenants who form two or more households.
• A building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies.
• In order to be an HMO the property must be used as the tenants’ only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges.

Home Information Packs

HIPS are here! They are being introduced on a phased basis depending on the size of your property, so please do contact us to get the very latest update.

The vendor is responsible for the cost of the HIP that will consist of:

1. Energy Performance Certificate (EPC) – a surveyor will visit the property and produce a home energy efficiency rating, which will offer advice on how to cut carbon emissions and fuel bills, and how to improve the impact that the property has on the environment.
2. Sale Statement – this will include the address of the property to be sold, whether it is freehold/leasehold/commonhold, whether it is registered/unregistered, and whether it is being with sold with vacant possession.
3. Standard Searches – these include the local authority land charges register relating to the property being sold, local authority searches relating to planning and building proposals, and the drainage search relating to the drainage and water supply to the property.
4. Evidence of Title – these documents will prove ownership and ensure that the property can be sold, they include official copies of title and a title plan from the land registry.