Last week we discussed the rights of a landlord in gaining access to their property. This week we are looking at:
What is The Housing Act 1988 and what rights does it give me?
The Housing Act 1988 is one of the leading statutes governing property law in England, so it is important for a landlord to understand it. It covers a wide range of areas and contains exceptions to the rules which can be hugely confusing for your average landlord. If you are a landlord and have struggled to understand what the Act means for you, the following breakdown of its purposes and an explanation of the rights it gives you should help makes things a little clearer.
1. What is the Housing Act 1988?
Almost every landlord will have encountered the Housing Act 1988 – it is referenced throughout most Tenancy Agreements and it dictates most of the law regarding the conflicting rights of landlords and their tenants. What the Act is, in fact, is a law that governs the private rental sector and the various parties that make that up. The simplest way to think of it, is as a rule book for both landlords and tenants.
2. Is The Housing Act 1988 the same as a tenancy agreement?
A common mistake that is made by landlords and tenants alike is to confuse the law with a tenancy agreement. A tenancy agreement is a legal contract between landlord and tenant, specifying the terms of that individual tenancy, such as the length and the amount of rent to be paid. On the other hand The Housing Act 1988 stipulates what the conditions within the tenancy agreement can and can’t be.
3. Do I even need to know all this?
YES! As a landlord you must ensure that none of the clauses in your Tenancy Agreement conflict with the statutory rights contained within the Housing Act 1988. At Neil Douglas we use a template from Painsmith Solictors who specialise in Property Law so we can be sure that we, and the landlord, are properly protected. If your Tenancy Agreement does not comply with this law, then the tenancy agreement will be invalid, due to the fact that the Housing Act has status as a ruling law, which means it cannot be overwritten.
The Act is particularly stringent when it comes to Assured Shorthold Tenancy agreements which were introduced alongside the act. This is the type of tenancy agreement that the majority of landlords and agents use these days so it pays to know what you are doing.
4. Why was the Housing Act 1988 introduced?
Before the Housing Act was introduced the rental sector was completely different to how it is today. Agreements were weighted heavily in the favour of tenants, and it became almost impossible for a landlord to get possession of their properties as tenants were allowed to stay indefinitely and could even pass the tenancy down through the generations. This meant landlords were increasingly reluctant to rent their properties. At the time this was becoming more of an issue, the council were selling their properties to private buyers and this led to a housing shortage.
The Housing Act 1988 was the solution. Ministers spent over 250 hours formulating laws that would redress the balance of power between tenants and landlords, in the hope that would entice landlords to start renting again.
The main areas of English property law that were dramatically altered with the Act were:
- Rent regulation
- Security of tenure
- Succession
Rent regulation: This was dramatically reduced by the Housing Act 1988. What this means is that today landlords may basically charge whatever they like for a property and the only bodies with the right to challenge the price are their tenants. They can refer their case to the Rent Assessment panel for review. However most rentals are based on market value and so this is not often something that is taken up by tenants. Add to that the power of the landlord to evict a tenant using Section 21 od the Housing Act 1988, and most tenants are reluctant to challenge the rent charged.
Security of tenure: There are two main types of tenancy under the Housing Act 1988. Those with long term security and those without it. The former is knows as an “Assured” Tenancy and is very rarely used by landlords these days as it is only possible to evict the tenant using a mandatory ground of serious rent arrears. Today they are generally only used by Housing Associations.
Most landlords today will use an “Assured Shorthold” tenancy. This is still a type of assured tenancy but differs in two key aspects: the first being the rent regulation (see above) and the second and more regularly used ground for possession. This gives the landlord to end the tenancy after the first six months of occupation, without reason, as set out in Section 21 of the Housing Act 1988. Although the process itself for serving the notice is relatively straightforward there are various rules and regulations that must have been adhered to so if you are an inexperienced landlord and want to give your tenants notice in this manner, it pays to ask the help of a specialist property solicitor, or a managing agent.
Succession: With respect to succession rights, these no longer have any relevance for anyone using an Assured Shorthold tenancy, as the landlords has the power to serve a section 21 notice to evict the tenants through the courts (see above)
5. How does the Housing Act 1988 affect me as a landlord?
The Housing Act 1988 is extremely important for all landlords, as it stipulates your legal rights as a landlord and also those of your tenant so you should ensure you have a good understanding of the areas it governs. It covers too many areas to put them in full here, but so long as you understand it governs almost all of your rights with regards to your rental property, you will know where to turn should you need clarification.
If you use a managing agent they will be fully aware of the Housing Act 1988 and also any recent changes that may have been made.
To read the act in full see here: