Losing Part VII status

If, on or after 2 January 1989, the parties to a Part VII contract have agreed to vary the rent, the contract will cease to be a Part VII contract. [1] If the rent was changed by the Rent Assessment Committee (now First Tier Tribunal Housing and Property Chamber), this does not apply and the contract can continue to be a Part VII contract.[2]

Variations in other terms of the contract may be sufficient to create a new contract where they are so fundamental as to alter the nature of the letting.

Where a Part VII contract is such because services are provided, it will become an assured tenancy when it loses Part VII status. The 'board and attendance' exemption that relates to regulated tenancies does not exist in relation to assured tenancies. However, where a Part VII contract was such due to the presence of a resident landlord, it will become a common law tenancy on losing its Part VII status.