Tenancy Agreements in England: An Overview
A tenancy agreement is an agreement between a tenant and landlord, covering both parties’ respective rights and obligations. The legal framework for tenancy agreements in England is covered by the Housing Acts, which offer protection to both landlords and tenants and deal with issues like tenancy termination, rent increases and eviction. It should be noted that while tenancy agreements can give tenants and landlords rights beyond what is specified under the law, such agreements cannot abridge legal rights of both parties.
The Housing Act of 1998 established two kinds of tenancy agreements in England – assured and assured shorthold. The two differ in the length of stay they are allowed. An assured shorthold tenant can be asked by the landlord to leave after six months’ stay as long as two months’ notice is given. An assured tenant can stay on the property unless the landlord can prove to the court that he has grounds to repossess the property. Under the subsequent Housing Act of 1996, tenancies beginning on or after 28 February 1997 are automatically shorthold tenancies unless an assured tenancy is negotiated. However, if your tenancy started before this date, it is an assured tenancy unless your landlord informed you otherwise, using a Section 20 notice.
Tenancy agreements in England can also last for either a fixed term – weeks, months or years – or run indefinitely from one rent period to the next (called a contractual periodic tenancy). Under a fixed term tenancy, a landlord can only evict a tenant before the term ends under specific grounds as specified in the law, i.e. if the tenant has consistently delayed paying rent which is due.
Both the landlord and tenant have rights and responsibilities which apply under the law even if they are not explicitly specified in the tenancy agreement. However, it is recommended that these be specified in such agreement anyway to avoid later misundertandings.
The landlord’s responsibilities include repairs to the property in the normal course of wear and tear but not for damage caused by the tenant. To cover the cost of repairs the landlord can include a certain sum in the rent to cover the cost but cannot charge the tenant a separate charge for them. The landlord is also tasked to ensure the safety of gas and electrical systems (which include appliances the landlord provides to the tenant). For gas appliances, the landlord is required to ensure that an annual safety check is conducted by a tradesman registered by the Council for Registered Gas Installers. He or she must also provide the tenant with a record of the annual checks, issued within 28 days of such a check.
The landlord must also ensure the fire safety of any furniture he or she provides the tenant, as provided for under the relevant regulations. Finally, the landlord must also supply whatever he or she has agreed on under the tenancy agreement.
On the other hand, the tenant is responsible for paying the Council Tax, a tax charged by the local government to fund public services. However, if the property is a house with multiple tenants, the landlord will shoulder the tax but can pass it on to the tenants. The tenant will also pay for water and sewerage charges, as well as other utilities bills. Of course, the tenant must also keep the property in good condition and pay the rent on time.
For rights, the landlord, or his or her agent, has the right to enter the property at reasonable times to undertake repairs and inspect the condition of the property. On the other hand, the tenant has the right to treat the property as his or her home and thus, the landlord has to ask their permission to enter the property unless the two parties have specified otherwise in the tenancy agreement. The tenant also cannot be evicted without an order from the court. Also, if the landlord sells the property, the tenant still retains the right to stay on the property as the agreement remains binding on the purchaser.
dealing with rent and how it should be paid should also be covered under the tenancy agreement. Under a fixed term tenancy, the rent should either be fixed for the entire term of the agreement or both parties should agree on how often and how it would be reviewed. For a contractual tenancy, the agreement should state how often the rent would be reviewed and how.
The landlord also cannot increase the rent beyond what is specified in the agreement unless the tenant agrees whatever the kind of tenancy agreement. However, the landlord can propose a rent increase using a special form but must formally inform the tenant at least a month in advance. The tenant can either accept the increase or appeal to a rent assessment committee, which will settle the dispute.