Renting Homes: The Final Report - Law Commission

8.5 Occupation contracts must contain fundamental terms relating to repairing
obligations. The question is the degree of detail we should recommend at this
stage.
FUNDAMENTAL TERMS
8.6 With these points in mind, the Bill, as currently drafted, imposes two broad
obligations on landlords. 4 The approach is to restate existing law, and our
previous recommendations for reform of the law, adapted to meet the needs of
our scheme.
8.7 First, we recommend that landlords must ensure that there is no category 1
hazard 5 on the premises subject to the contract. 6 This adapts the
recommendation made in Landlord and Tenant: Responsibility for State and
Condition of Property 7 relating to unfitness for human habitation, to accommodate
the change in the law introduced by the Housing Act 2004.
8.8 Second, they must keep in repair the structure and exterior of the premises, and
keep in repair and proper working order the service installations in the premises. 8
This test restates in modern form the test which currently appears in the Landlord
and Tenant Act 1985 section 11. This obligation will apply to all periodic
occupation contracts, and fixed term standard contracts for a term of less than
seven years. Unlike section 11, it will therefore extend to licences as well as
leases.
8.9 Each of these tests is to be applied flexibly. The Bill therefore provides that:
(1) both tests are adapted where the premises form part only of a building;
(2) the standard of repair is that which is reasonable having regard to the
age and character of the premises and the period during which they are
likely to be available for occupation as a home; 9
(3) the landlord must make good any damage caused by works and repairs
needed to comply with these obligations, 10 and may not impose any
obligation on a contract-holder who enforces or relies on the landlord’s
obligations; 11
4
These apply to all occupation contracts, save fixed term contracts for seven years or more:
cl 43(1).
5 As defined in the Housing Act 2004: cl 43(7).
6 Cl 43(1).
7
(1996) Law Com No 238.
8 Cl 43(2). Service installations are those for the supply of gas, water, electricity, sanitation,
space heating and heating water: cl 43(7).
9 Cl 43(4).
10 Cl 43(5).
11 Cl 43(6).
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