Renting Homes: The Final Report - Law Commission

1.26 At present, many landlords do not provide clear tenancy agreements.
Agreements frequently fail to mention the effect of protective legislation. In order
to understand the exact legal relationship between landlord and occupier, parties
have to read their agreements alongside a complex body of statute and case law.
Not surprisingly, many cannot discover what their true legal position is. Our
recommendations transform this unsatisfactory situation.
1.27 Our approach has a number of practical consequences.
(1) The regulatory framework governing the relationship between landlord
and occupier applies wherever there is a contract (other than an
excepted contract) giving the right to occupy premises as a home.
(2) The principles underlying the Unfair Terms in Consumer Contracts
Regulations 1999 14 are extended to all landlords and occupiers.
(3) Fundamental terms, and supplementary terms which incorporate
supplementary provisions without modification, reflect mandatory
statutory provisions and as such are not subject to the Unfair Terms in
Consumer Contracts Regulations. 15 Terms relating to key matters will not
be subject to the regulations so long as they are in plain intelligible
language. 16
1.28 In addition to fairness and transparency, this approach has other benefits. In
particular, the recommended scheme encourages a new professionalism
amongst private landlords and their agents, not only those with substantial
property portfolios, but also small “hobby” landlords. By emphasising the mutual
recognition of each party’s rights and responsibilities, 17 our recommendations
provide a foundation for improving relationships between occupiers and
landlords. While there may be some initial start-up costs, overall costs should
quickly reduce. There should be significantly reduced compliance costs.
1.29 Implementation of the consumer protection approach in the Bill is achieved in a
variety of ways. Two introductory points are made here.
Provisions and terms
1.30 The provisions of the Bill which set out the most important rights and obligations
of the parties to an occupation contract have a dual function. They are statutory
provisions. But they are also incorporated into occupation contracts as terms of
the contract. As terms they will be readily accessible to the parties, because they
are set out in the written statement of the contract. This is a central part of our
consumer protection approach.
14 SI 1999 No 2083.
15
Cls 13 and 23(1), and Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999 No
2083) reg 4(2).
16 Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999 No 2083), reg 6(2).
17 Adoption of many of the ideas floated in The Joseph Rowntree Foundation – Shelter
Commission on the Private Rented Sector, Private Renting: A new settlement: A
commission on standards and supply (Shelter, 2002) would be greatly facilitated by the
introduction of the scheme recommended here.
17