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Renting Homes: The Final Report - Law Commission

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PART 2<br />

THE SCHEME IN OUTLINE<br />

2.1 In outline the scheme provides as follows. 1<br />

COVERAGE<br />

2.2 Unless otherwise excluded, 2 all contracts to occupy premises for residential<br />

purposes come within the scheme.<br />

CONTRACT TYPES<br />

2.3 <strong>The</strong>re are two types of occupation contract:<br />

(1) the secure contract, modelled on the present secure tenancy, giving<br />

substantial security of tenure protected by statute; and<br />

(2) the standard contract, modelled on the present assured shorthold<br />

tenancy, where the duration of the occupation is determined by the<br />

contract.<br />

Community landlords will be required to enter into secure contracts, except where<br />

the Bill allows them to enter into standard contracts (for example as probationary<br />

contracts, or following a court order after the anti-social behaviour term has been<br />

breached).<br />

2.4<br />

Conversion of existing tenancies and licences to occupation contracts<br />

Existing tenancy agreements and licences are converted into either secure or<br />

standard contracts. This is necessary to prevent the ever-increasing<br />

accumulation of different types of tenancy which happened in the past. Further<br />

detail on conversion is set out in Part 3.<br />

Exceptions<br />

2.5 <strong>The</strong>re are two exceptions. First, following public consultation, we do not<br />

recommend automatic conversion of agreements still protected by the Rent Act<br />

1977 (protected and statutory tenancies). <strong>The</strong>ir conversion to secure contracts<br />

would be logical. But there is considerable resistance to the idea from the tenants<br />

who would be most affected. Nevertheless, we include a power enabling the<br />

appropriate authority to bring this group into the new scheme. 3<br />

1<br />

In <strong>Renting</strong> <strong>Homes</strong> (2003) <strong>Law</strong> Com No 284, the scheme in outline, and the scope of the<br />

scheme, were discussed in Parts 3 and 6 respectively.<br />

2 See below, at paras 2.56 to 2.62.<br />

3 Cl 221. <strong>The</strong> appropriate authority is defined in cl 228 as the National Assembly for Wales,<br />

in relation to Wales, and in any other case the Secretary of State.<br />

29

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