Contractual or statutory assured tenancy

For as long as an assured tenancy contract is running, the tenant's right to occupy the property derives from the contract itself. The tenancy is therefore called a contractual assured tenancy. This is also the case where a tenancy tacitly relocates. In Scotland, whenever a contractual period ends, it automatically repeats itself for the same length of time, unless a notice to quit has been served. This is known as tacit relocation. Please see the lease automatically repeats page for more information about tacit relocation.

A contractual assured tenancy is governed by the contract. The contract can give the tenant more rights but cannot undermine those enshrined in statute.

There is an obligation on the landlord of every assured tenant to provide a written tenancy agreement [1] and the tenant should not be charged for this. [2] Failure by the landlord to provide a written tenancy agreement does not mean that an assured tenancy does not exist. The terms of the contractual assured tenancy will be inferred from the conduct of the parties, even where this conduct is the only evidence that an agreement has been reached. [3]

Where there is no written agreement or the written agreement does not fairly reflect the terms of the tenancy, a tenant can apply to the court to have a lease drawn up or the existing one adjusted. [4]

When an assured tenancy contract is validly brought to an end by one of the parties serving a notice to quit on the other, which must coincide with the ish, the tenant will become a statutory assured tenant. The tenant remains entitled to occupy the property, but this right comes from statute. [5] In the case of assured tenancies the statute gives the tenant very strong rights of occupation and they are only required to leave if the court grants a possession order. [6]

Most of the tenancy conditions remain the same under the statutory assured tenancy as they were under the contractual assured tenancy. [7] However, the terms in the contract relating to grounds for termination and rent increases 'fly off' or disappear upon the creation of a statutory assured tenancy, [8] unless the amount or formula by which the rent may be increased is specified in the tenancy agreement. In practice this means that, under a statutory assured tenancy, the landlord is likely to have greater scope in relation to using the grounds for recovery of possession.

Landlords can increase the rent at any time during the statutory assured tenancy so long as they give the tenant enough notice. The notice period depends on the length of the tenancy. If the tenancy was for six months then the notice period is six months. If the tenancy was for less than six months then the notice period is one month, or the length of the tenancy - whichever is longer. [9]

The rent can be increased by any amount unless the original contract either states that increases will be of a specified amount, or provides a formula for determining such increases. The factors involved in determining the rent increase should not be wholly within control of the landlord. [10] For example, a rent increase clause linked to inflation would be acceptable. If a tenant disagrees with the rent increase, for instance it is wildly above the market rent for that area, they can apply to the First Tier Tribunal Housing and Property Chamber to have the rent increase investigated. If this is the case the rent increase will not take effect until the matter is resolved by the tribunal, or the parties come to an agreement. [11] Once the rent has been increased it can only be increased again after one year has passed. [12]