Renting Homes: The Final Report - Law Commission

TWO KEY FEATURES
1.20 We now consider in more detail the two features of the scheme mentioned
above: landlord-neutrality and the consumer protection approach.
Landlord-neutrality
1.21 At present local authorities can only let on secure tenancies; 9 registered social
landlords can only let on assured tenancies. 10 Both play a similar role in the
housing market, but the regulatory framework is quite different. Our
recommendations break the link between the identity of the landlord and the
statutory rules that apply to agreements entered into by that landlord.
1.22 Under our scheme, both local authority and registered social landlords (and
private landlords) are able to enter occupation contracts on identical terms. This
enables the interface between local authorities, arms-length management
organisations, and other social landlords – whether registered or unregistered –
to become much more permeable. It facilitates the development of new
partnerships between social sector and private sector landlords in the provision of
social rented housing. 11
1.23 Under our scheme, there are circumstances in which landlords are required to
use one or other of the two types of contract we are creating. But these apply
across the board, and are not generally confined to a specific type of landlord.
1.24 This approach gives the Government much greater scope for the development of
new housing policy initiatives. For example, our recommendations could create
opportunities for social landlords to enter new sectors of the housing market (as
some registered social landlords already do). These might address some of the
difficulties surrounding the provision of accommodation for key workers in areas
of high housing demand. They could also be used in combination with new equity
sharing schemes.
Consumer protection approach 12
1.25 The consumer protection approach 13 is designed to ensure that all landlords and
occupiers have a written statement of their contract, setting out the rights and
obligations of the parties.
9 Housing Act 1985.
10 Housing Act 1988.
11 For example, it could be a condition of the receipt publicly funded grants that private sector
landlords would have to enter contracts on the same terms as other social landlords.
12
For further background on the consumer protection approach, see Renting Homes (2003)
Law Com No 284 Part 4.
13 This builds on the fact that the Unfair Terms in Consumer Contracts Regulations 1999 (SI
1999 No 2083) already apply to tenancy agreements.
16