Renting Homes: The Final Report - Law Commission

The status of the occupation contract 105
6.68 It is relevant to know whether steps have been taken by any party to bring the
contract to an end, or whether something has been done by any party which
might cause the contract to end. Thus, for example, it will be more reasonable to
refuse consent where a term of the contract has been broken and possession
proceedings are in contemplation than where that has not happened.
The premises 106
6.69 It is relevant to consider the size and suitability of the premises; whether the act
for which consent is required will lead to premises becoming overcrowded, or
under-occupied, or not being suitable to the needs of the person who will occupy
the premises; and whether if the transaction were to take place one of the estate
management grounds for possession would become available to the landlord.
Thus it would not be reasonable to expect an able-bodied person to be given
consent to take over a contract for premises adapted for the disabled.
The circumstances of the contract-holder 107
6.70 It is relevant to consider the probable effect of the transaction on the lives of the
parties to the transaction, and others who occupy the premises. It is also relevant
to consider whether or not the contract-holder is in breach of the contract. In such
a case, it may be reasonable to impose a condition that the breach must cease.
Thus it might be reasonable to provide that rent arrears must be paid off as a
condition to the giving of consent.
The circumstances of the landlord 108
6.71 It is relevant to consider the financial interests of the landlord; where the landlord
is a community landlord, the impact of any transaction on its ability to perform its
housing functions; any rules or other criteria the landlord may have about its
allocations policies; or whether the transaction accords with its management
code. It is specifically provided that a local authority will act reasonably if it
refuses consent to a transaction (other than a transfer to a potential successor or
secure contract-holder) that would result in a person ineligible for an allocation of
housing becoming a contract-holder.
The proposed joint contract-holder 109
6.72 Where a contract-holder seeks consent to add another to the contract it is
relevant for the landlord to consider whether the proposed newcomer is suitable
(including their past record of contract compliance); whether the proposed
newcomer is a member of the contract-holder’s family; whether they may become
the sole contract-holder and whether they might (if they did not become a
contract-holder) become a successor to the contract.
105 Sch 4 para 2.
106 Sch 4 para 3.
107 Sch 4 paras 4 and 5.
108 Sch 4 paras 6 and 7.
109 Sch 4 para 8. As to succession rights see Part 7 below.
115