07 May, 2010

Having looked at the main types of residential property lettings and Tenancy Agreements, the third part of our Guide to Letting Property looks at Assured Tenancies;

What is an Assured Tenancy?

Assured Tenancies were introduced by the Housing Act 1998.  They cover the majority of residential property lettings barring certain exceptions including holiday lettings, agricultural lettings where more than 2 acres are included with the property and letting of property in which the landlord is resident.

The Housing Act 1998 - Key points for Assured Tenancies

• Unless the tenancy is for a duration in excess of seven years, the landlord is responsible for keeping the property in a habitable condition in accordance with relevant local health and safety regulations.
• The tenant is required by law to pay for water, fees arising from sewerage and council tax.
• The landlord is entitled to ask the tenant for a security deposit at the outset of a rental agreement.  This can be for any amount as long as the tenant is in agreement.  If this figure exceeds two months' rent then the tenant has the right to sublet to a subtenant, unless stated otherwise within the rental agreement. 

Types of Assured Tenancies

There are two forms of Assured Tenancy:

Assured Tenancy
• The tenant has the right to remain in the property unless the landlord can give grounds for possession e.g. a need to return to the property, or the tenant does not pay their rent.
• The landlord does not have an automatic right to return to the property when the tenancy comes to an end, as is the case with Assured Short hold Tenancies

Assured Short hold Tenancy 
• Short hold Tenancy agreements are the most common of tenancies and are for a fixed period of time.
• The landlord has the right to regain possession at the end of the term of agreement subject to giving 2 months notice that possession is required.
• Possession of the property will only be awarded to the landlord following a six month period.

For useful sources of information on the letting of property please visit our Let Property Information page.

Please note that this article is meant only as a guide to some of the pertinent issues related to renting property in the United Kingdom. It is based on Cornish Mutual's current understanding of the law however any one acting on the advice contained in this guide is deemed to have satisfied themselves of the correct legal position by having contacted and involved the relevant knowledgeable person or organisation.