LEGAL POSITION

Current Legislation

In 1988 the government introduced The Housing Act. Its main aim was to attract landlords back to the private sector. The Act created two types of tenancies; an Assured and an Assured Shorthold Tenancy. The Assured Shorthold is the most popular as it guarantees the landlords right of possession, unlike the Assured Tenancy where possession is subject to certain criteria.


The Housing Act (1996) amended the 1988 legislation, making all tenancies that meet the requirements of the 1988 Housing Act, Assured Shorthold Tenancies.

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The following criteria must be met in order to create an Assured Shorthold Tenancy:

• The property must be the principle residence of the tenant. (Or for at least one of the tenants in multiple occupancy).
  
• The rental income must not exceed £25,000 per annum.
  
• The landlord must not be resident in the property.
  
• The tenant must be an individual.
  
  
  

POSSESSION PROCEDURE

Under the Assured Shorthold Tenancy, the landlord is guaranteed possession of the property at the end of the tenancy.

The landlord must, however honour the notice period given to the tenant, usually at least two calendar months written notice. If the tenancy is fixed term, the notice period must not expire prior to the end of the tenancy agreement. If the tenant refuses to leave the property at the end of the notice period, the landlord can use the Accelerated Possession Procedure, to remove the tenant which does not require court action.

The most likely reason for seeking possession of your property is if the tenant has fallen into arrears with their rent. If at the point of court proceedings the rent is in arrears for at least two month, possession is mandatory. There are, however some instances where not all Assured Shorthold Tenancies meet with the above criteria. In these cases, the tenancy is outside the jurisdiction of the Housing Act 1998, and is subject to contract law. They include company lets and where the annual rental income is greater than £25,000.