Renting Homes: The Final Report - Law Commission

PART 3
OCCUPATION CONTRACTS
INTRODUCTION
3.1 One of the principal reasons why the current law relating to the renting of homes
is so complex is the large number of different tenancy types that are found in the
legislation. They include: secure tenancies; assured tenancies; assured shorthold
tenancies; introductory tenancies; statutory tenancies; protected tenancies;
demoted tenancies. Each of these different legislative statuses attracts different
sets of rights and obligations, particularly in relation to questions of security of
tenure. 1
3.2 In addition, a whole raft of supplementary rules defines when a tenancy
agreement falls within the scope of a particular legislative scheme and when not.
For example, in the case of assured tenancies:
(1) the rent must be below a defined level;
(2) the rent must be above a defined level;
(3) the premises must be used as the tenant’s only or principal home;
(4) the premises must be let; 2
(5) the tenancy must not fall within one of the other exceptions listed in
Schedule 1 to the Housing Act 1988 (which include lettings to students,
agricultural tenancies and lettings by local authorities).
3.3 Analogous provisions define the scope of secure tenancies. In particular, secure
tenancies can only be granted by those who meet the “landlord condition”. 3 They
can only be granted to those who satisfy the “tenant condition”. 4
3.4 Tenancies that do not meet the statutory criteria by definition fall outside the
statutory schemes. They remain subject to the general rules of common law and
law of equity that regulate the landlord and tenant relationship. While these are
appropriate for long leases, they are not well suited for shorter term letting
arrangements.
3.5 A fundamental aim of our project is to simplify this complex range of rules and
distinctions.
3.6 Central to the recommended scheme is the concept of the occupation contract.
This Part considers issues relating to the creation and use of occupation
contracts. 5 Here we discuss:
1
Our recommendations for the rationalisation of the rules on security are discussed below in
Part 4.
2
If the agreement constitutes a licence it falls outside the scheme.
3 Essentially, they must be local authorities: Housing Act 1985, s 80.
4 They must occupy the premises as their only or principal home: Housing Act 1985, s 81.
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