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
Twas the site before Christmas...
A rhyme for the industry and a thankyou to our supporters.
Plumbing and heating systems in schools
New apprentice pay rates coming into effect in the new year
Addressing the impact of recent national minimum wage changes.
EBSSA support for the new industry competence structure
The Engineering and Building Services Skills Authority, in working group 2.
Notes from BSRIA Sustainable Futures briefing
From carbon down to the all important customer: Redefining Retrofit for Net Zero Living.
Principal Designer: A New Opportunity for Architects
ACA launches a Principal Designer Register for architects.
A new government plan for housing and nature recovery
Exploring a new housing and infrastructure nature recovery framework.
Leveraging technology to enhance prospects for students
A case study on the significance of the Autodesk Revit certification.
Fundamental Review of Building Regulations Guidance
Announced during commons debate on the Grenfell Inquiry Phase 2 report.
CIAT responds to the updated National Planning Policy Framework
With key changes in the revised NPPF outlined.
Councils and communities highlighted for delivery of common-sense housing in planning overhaul
As government follows up with mandatory housing targets.
CIOB photographic competition final images revealed
Art of Building produces stunning images for another year.
HSE prosecutes company for putting workers at risk
Roofing company fined and its director sentenced.
Strategic restructure to transform industry competence
EBSSA becomes part of a new industry competence structure.
Major overhaul of planning committees proposed by government
Planning decisions set to be fast-tracked to tackle the housing crisis.
Industry Competence Steering Group restructure
ICSG transitions to the Industry Competence Committee (ICC) under the Building Safety Regulator (BSR).
Principal Contractor Competency Certification Scheme
CIOB PCCCS competence framework for Principal Contractors.
The CIAT Principal Designer register
Issues explained via a series of FAQs.