Renting Homes: The Final Report - Law Commission

(4) Unless the failure to provide the written statement is the fault of the
contract-holder, the contract-holder is entitled to compensation. The
amount of compensation is a payment equivalent to each day’s rent, 119
starting with the date on which the contract-holder’s right to occupy
began and ending on the day when the written statement was provided.
This is subject to a maximum amount, the equivalent to two months’
rent. 120 The contract-holder may seek enhanced compensation (up to
double) from the court, where they can prove that the refusal of the
landlord to provide the written statement was wilful. 121 Because this right
to compensation does not arise until the expiry of a period of two weeks
starting with the effective date, while the right to terminate early (referred
to in sub-paragraph (2)) is only available before the effective date, these
remedies are mutually exclusive.
(5) If the written statement is either incomplete, or incorrect, the contractholder
has the right to apply to the court for a declaration. 122 The
contract-holder may also ask the court to order compensation to be paid,
where the court finds that the failure to complete or the incorrectness was
the result of wilful default by the landlord. 123 The contract-holder can
apply to the court for an order increasing the amount of compensation.
(6) Where compensation is to be paid, the contract-holder may obtain
satisfaction by setting off the compensation owed against rent. 124
Procedural sanction
3.56 In addition, where the landlord under a standard contract fails to provide a written
statement of the contract, we recommend a procedural sanction. This will delay
the ability of the landlord to take advantage of the notice-only ground for
possession. Thus, where a landlord fails to provide a written statement of the
agreement within two weeks from the effective date, they will not be able to make
a claim for possession until six months after the date on which the written
statement of the contract is provided to the contract-holder. 125
MODIFYING AND VARYING THE CONTRACT
Modification
3.57 We have discussed above the circumstances in which fundamental and
supplementary provisions may be incorporated as terms of the contract with
modifications. 126
119 Cls 34(1) and (2).
120 Cl 30(2).
121 Cls 34(3) and (5).
122 Cls 31 and 32.
123 Cls 31(9), 32(7) and 34(4).
124 Cl 66.
125 Cls 177(1) and (2).
126 Paras 2.15 to 2.19, 3.41 and 3.47.
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