Renting Homes: The Final Report - Law Commission

1.53 We found that, in practice, many landlords let for minimum periods of six or
twelve months. In this case, the contract “trumps” the statute, rendering the
moratorium redundant. There is no reason to think that landlords will alter their
letting practices. Most landlords want to keep their tenants for as long as possible
(to prevent voids); they are not interested in turning people out after a short time.
And we received no evidence of any tenant taking advantage of the six-month
period to assert their rights against a difficult landlord.
1.54 In a recent report, 32 Shelter argues the case for increased security of tenure in
the private rented sector. Insofar as the private rented sector is used to house the
disadvantaged – lone parents, the elderly – this is clearly an important policy
consideration. But the private rented sector also houses many more who do not
fall into these groups. Indeed, the private rented sector is far more diverse than
the social rented sector. Although ultimately a question for the Government, we
do not think that a blanket extension of statutory security to the whole of the
private rented sector will achieve the goal to which Shelter aspires. It will
introduce inflexibility into this sector of the market which, in many cases
occupiers do not want any more than landlords. This will in turn reduce the
number of units of accommodation available for renting.
1.55 We acknowledge that security of tenure is an important issue. But we think it best
addressed by focussing on the contractual rights between the parties (which are
at the heart of our recommendations) rather than statutory rights. A number of
local authorities, for example, are entering agreements with private landlords to
provide housing for longer contractual periods. These could be, for example, for a
fixed term; 33 or until any children in the household reach the age of 16, or schoolleaving
age. All these options are possible under our scheme. They give flexibility
in the use of contracts for particular classes of user of the private rented sector
without affecting other groups who want to take advantage of the private rented
sector. The private rented sector offers people choice and flexibility that the social
sector cannot. To seek to make the private rented sector more like the social
rented sector would only serve to remove the very things that make the private
rented sector attractive in the first place.
1.56 In our future work on developing good landlord practices, we shall explore ways
in which additional incentives can be given to landlords to enhance their contracts
for the benefit of their occupiers.
Conclusion
1.57 We acknowledge that these matters are controversial. We have not found them
easy to resolve. But we think our recommendations on these issues are practical
and do not adversely affect the interests of, respectively, social landlords and
tenants. And in our future work, we consider alternative ways to ensure that these
specific reforms do not have undesired consequences. In the meantime, both
these changes greatly assist the creation of the more rational and flexible
regulatory framework that is the great prize of our recommendations.
32 Safe and Secure? The private rented sector and security of tenure (Shelter, 2005)
33 Changes to the rules relating to the provision of accommodation by private landlords to the
homeless are an example of this principle in practice: Housing Act 1996, s 193 (amended
by the Homelessness Act 2002). This principle could apply more generally.
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