The Housing Act of 1988 is a property law in the United Kingdom which covers several areas, exceptions to the rules laying it down; which can be a bit confusing. The act is important and if you are a Landlord and you want to understand this law, breaking down its purposes is important.
Encountering Housing Act 1988
Almost all Landlords will encounter the Housing Act 1988. This law is referenced several times in tenancy agreements that every Landlord signs. The law dictates the majority of the law that deals with the conflicting rights of both Landlords and Tenants.
Essentially, the act is a law governing the private rental industry and the parties making up that sector. It can be simply likened to a rule book that contains the statutory rights, as well as the legal responsibilities of both Landlords and Tenants.
Some people make the common mistake of confusing this law with that of a tenancy agreement. They are definitely one and the same. Tenancy agreements are the binding contract that involves two parties agreeing in certain conditions about individual tenancy. This contract is the document that specifies the amount of rent to be paid, as well as the length of time that the tenant will occupy the property. The Act or the law, on the other hand, is the rule stipulating the conditions that can and cannot be included in the tenancy agreement. So, basically, the law governs what the agreement should be all about.
The Importance of the Housing Act 1988
If you are a Landlord, then you need to know the importance of the Act. It is a necessity that you make sure that every clause in tenancy agreement is written in accordance with the Act.
Non-compliance with the law makes your tenancy agreement invalid. Keep in mind that the Act is a ruling law and it can never be overwritten. The law is particularly stringent regarding to the shorthold assured tenancy agreements, and these were introduced together with the law itself.
Purpose of Housing Act 1988
The Act was created for a purpose. It provided the solution to the previous problem of Landlords regarding property laws that were in favour of the Tenants. Prior to the creation of the Housing Act 1988, Tenants were able to stay in their rented properties indefinitely, and they were even able to pass the residency to their heirs. This kind of practice made it almost impossible for the Landlords to regain possession of their properties. The Tenants could not be forced out of the properties because they were protected by the law.
Before the Housing Act 1988, there were shortage of available rental properties because many property owners became unwilling to rent out their property. With the creation of the Act, Landlords were given equal protection with what the Tenants were getting.
The Act made changes in some of the old property law’s rulings. One significant change is that the rent regulation was significantly reduced, giving the Landlords the freedom to charge as they please.
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