The Housing Act 1988 became law on 15th January 1989 and created two new types of tenancies. The Assured and The Assured Shorthold. The Act superseded the Rent Act 1977 and The Housing Act 1980.

The Housing Act Provides the Landlord with the most favourable legislation for letting in the post-war years.

The Act ensures that the private rented sector is now freely open to market forces without rent control. A tenant has security of tenure for the period of an agreement only and must pay market rent.

ASSURED TENANCIES
An Assured Tenancy would give a tenant Security of Tenure (albeit at a market rate) unless certain relevant Housing Act notices are served. The Act gives several grounds for repossession. One of the grounds is Ground 1 of Schedule 2 of the Act, which relates to the right of an owner of a dwelling to return to the property as his or her home. Letting to Limited Companies cannot be an Assured Tenancy.

ASSURED SHORTHOLD TENANCIES
An Assured Shorthold Tenancy is a form of an Assured tenancy and many of the rules governing an Assured Tenancy including the criteria necessary to create an Assured Tenancy in the first place applies. The major difference is that an Assured Shorthold offers limited security of tenure to the tenant and guarantees possession, at the end of the tenancy, to the Landlord - provided that at least six months of the tenancy have elapsed. With the advent of The Housing act 1996 there is now no minimum length of term for an Assured Shorthold Tenancy. Possession will not be granted by the Courts during the first six months, so to avoid confusion, and as long as the tenant agrees, it might be easier to draw up Assured Shorthold Tenancies for 6 months or longer. You can of course offer a periodic Assured Shorthold Tenancy, but again, the Courts will not grant possession to the Landlord until 6 months of the tenancy have elapsed.

We generally recommend both owner-occupier and investment landlords to let on an Assured Shorthold Tenancy.