Renting Homes: The Final Report - Law Commission

Variation
3.58 In addition the Bill provides that terms in a contract, once agreed and operative,
may be varied. 127 This will be important in many cases, particularly with secure
contracts. Apart from anything else, landlords will want to ensure rent levels can
be adjusted to match inflation. But there may be other reasons why it becomes
necessary to amend the contract. The Bill contains detailed provisions for varying
the terms not only of secure contracts, but also periodic and fixed term standard
contracts. 128
Secure contracts
3.59 The terms of secure contracts cannot be varied, save as provided for by the
Bill. 129
KEY MATTERS – RENT
3.60 The landlord may vary the rent by giving at least two months’ notice, 130 stating the
new rent. 131 The notice must specify a date on which the new rent is to take
effect. The first notice of increase may specify any date. 132 Subsequent notices
must specify a date which is not less than one year after the last date on which a
new rent took effect. 133
FUNDAMENTAL TERMS
3.61 Fundamental terms may be varied by agreement between the landlord and the
contract-holder, so long as the result of the variation is not to reduce the degree
of protection afforded to the contract-holder as compared with the fundamental
provision which the term incorporates. 134 For example, a landlord may vary the
terms so as to exclude one or more of the grounds on which possession
proceedings may be taken.
3.62 This does not apply: 135
(1) to the fundamental terms relating to prohibited conduct; 136
(2) to the fundamental term which prohibits the making of false statements to
secure the occupation contract; 137
127 “Variation” includes the addition and removal of terms: cl 93.
128 Rented Homes Bill Part 3, Ch 1.
129 Cl 79.
130 Cl 80(2).
131 Cl 80(1).
132 Cl 80(3)(a).
133 Cl 80(3)(b).
134 Cl 81(3).
135
Cl 81(2). This is similar to the rule relating to the modification of fundamental provisions:
see above, at para 3.41.
136 As defined in cl 51. Prohibited conduct is discussed below in Part 9.
137 Cl 64.
59