Landlord and Tenant Act 1985


The Landlord and Tenant Act 1985 is a UK act of Parliament on English land law. It sets minimum standards in tenants' rights in relation to their landlords.

Background

The reason for the introduction of the Act was not as might be assumed to help the existing private residential landlords who were in 1985 obliged by law to have regulated tenancies. Their regulated tenancies gave all tenants a tenancy for life which they could pass onto other occupants in the home when they died. Rents were set typically 50% of market value. They could not be re-mortgaged because of the sitting tenant and if sold were worth 50% of vacant possession value because of the regulated tenant being in place.
At this time regulated tenancies were the only tenancy available to private landlords and made up just 5% of housing stock. Private rent levels were set by 'fair rent officers'. With insufficient rent to make a profit or pay expensive property repairs, private landlords sold up as soon as a tenant moved out, as there were better investments elsewhere. The reason the Landlord and Tenant Act was passed was in preparation for the privatisation of the housing associations. This legislation should be seen in context with the Housing and Planning Act 1986 which gave councils the option of transferring housing stock to another private landlord and the Housing Act 1988 that deregulated the private rental sector for a few years until re-instated in 1991 by the Labour Party on regulated tenancies only, so now housing associations could charge what they liked, raise private investment, sell council houses etc.
The Act was not fundamentally altered by either the Major, Blair, Brown or Cameron governments in reference to fair rents, rights to fair reasons for ending a tenancy, or prohibiting estate agent fees. However, amendments were inserted by the Landlord and Tenant Act 1987, Housing Act 1996, the Commonhold and Leasehold Reform Act 2002, the Localism Act 2011, and the Homes (Fitness for Human Habitation) Act 2018, and in Wales the Renting Homes (Wales) Act 2016.

Contents

Sections 1 to 3A require that landlords give basic information to tenants regarding their identity, including directors if the landlord is a company. Under section 3A, landlords must disclose whether there is a right of the tenant to acquire the landlord's interest.
Sections 4 to 7 require information to be contained in rent books. Section 5 requires this include the name and address of the landlord, the rent, terms and conditions of the contract, or matters prescribed by the Secretary of State in regulations.
Sections 8 to 10 state it is an implied contract term that the property will be fit for human habitation, which under section 10 includes the state of "repair, stability, freedom from damp, internal arrangement, natural lighting, ventilation, water supply, drainage and sanitary conveniences, facilities for preparation and cooking of food and for the disposal of waste water".
Sections 11 to 17 place mandatory duties on landlords to repair properties in leases under 7 years that are dwelling houses. Section 11 specifies the repair obligation includes "the structure and exterior of the dwelling-house ", installations for "water, gas and electricity and for sanitation has a right to be consulted about anyone working as a managing agent.
Under section 31, the Secretary of State still has a "reserve power" to limit rents by order. Specifically, anywhere in England or Wales, an order may be passed " restricting or preventing increases of rent for dwellings which would otherwise take place, or restricting the amount of rent which would otherwise be payable on new lettings of dwellings" for any homes, anywhere. This power has not been used in any significant way.
Sections 31A to 39 set out "supplementary" provisions. Sections 31A-C concern the jurisdiction of the leasehold valuation tribunal. Section 33 states directors of companies are jointly liable with companies for offences committed with their consent. Sections 36 to 39 contain definitions.
Sections 18 to 30 form the basis of the legal rights and responsibilities of English and Welsh leaseholders in respect of variable residential service charges.

Proposed amendments

Significant political discussion has revolved around the reintroduction of genuine rent regulation, to assure a legislative charter of tenants rights. This includes, first, regulation of the maximum increases of rent by a landlord, as operates in most OECD countries such as Canada and Germany. Second, there have been calls to ensure tenants have the right to remain in their home unless the landlord has a good reason to evict them, particularly so that landlords cannot evict old tenants and raise rent on new tenants. Thirdly, various proposals have been made to stop estate agents charging fees to tenants, in the same way that employment agencies are banned from charging fees to people seeking work by the Employment Agencies Act 1973.