Hybrid assured shorthold tenancy
In January 2017, in a decision that will be required reading for property landlords, the Court of Appeal has confirmed the validity of a form of assured shorthold tenancy that has been in common use for many years. At the same time, the Court defined the concept of ‘ownership’ in the context of council tax liabilities.
The case of Leeds City Council v Broadley concerned a property investor who rented out residential premises to tenants on the basis of standard form leases that are ubiquitous in the private rental sector. Each lease was for a term of six or 12 months and thereafter continued on a month-by-month basis. The obligation to pay council tax rested on the tenant.
Putting forward a novel argument, a local authority submitted that leases must either be for a fixed or a periodic term and that ‘hybrid’ leases are invalid. It was submitted that the lease concerned in the case had to be viewed either as for a fixed term, followed by a periodic tenancy, or as a monthly periodic tenancy that could not be terminated in its first six or 12 months.
On that basis, the council argued that the lease had not been granted for a period of six months or more and that relevant tenants could thus not be viewed as ‘owners’ within the meaning of Section 6 of the Local Government Finance Act 1992. That, it was submitted, meant that when a tenant ceased to occupy a property during the term of the lease, the liability to pay Council Tax reverted to the landlord.
In rejecting those arguments and dismissing the council’s appeal against an earlier decision to like effect, the Court found that the form of lease in question was valid. Such leases reflected an obvious commercial reality and provided a benefit to both landlord and tenant in offering a degree of initial certainty with a degree of flexibility thereafter.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Electrotechnical excellence, now open for entries.
Net zero electricity grids BSRIA guide NZG 5/2024
Outlining the changes needed to transition to net zero.
CIOB Global Student Challenge 2024
Universitas Indonesia wins for second year running.
New project and cultural district described in detail.
The nature of EPCs, crticism and inaccuracies.
History, issues and redesign.
From waste recycling to energy performance the hierchy.
An introduction to WERCS and WEEE responsibilities
Dealing with 2 million tonnes of waste equipment a year.
Global BACS Market: analytics and optimisation
A BSRIA glance at building automation and control systems.
What it is and how to use it.
Types of insulating plaster by binder and insulant.
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.