If you’re buying a rented residential property, don’t assume the tenants are on an assured shorthold tenancy (AST). Pre-January 1989 tenancies are often regulated (Rent Act) tenancies, which give tenants powerful rights over rent levels, eviction, and succession.
Rent Act (regulated) tenancies:
Allow “fair rent” registration by a Rent Officer (VOA). The registered figure caps what the landlord can charge until review.
Prevent eviction without a court possession order, granted only on limited grounds.
Give certain succession rights to a spouse/civil partner or family member on the tenant’s death.
(Exclusions include most student/holiday lettings, licensed premises, and resident-landlord situations.)
Either party can apply to register a fair rent. The Rent Officer assesses:
Condition/repair, character, location, age
Furniture/fixtures and any lawful premium
They ignore personal circumstances, tenant-caused disrepair, and tenant improvements not required by the tenancy.
Registered rents usually stand for two years before a unilateral re-registration can take effect (earlier by joint application or material change). Disputes can go to a rent assessment committee.
When the contractual term ends, qualifying tenants become statutory tenants.
Possession requires a court order on grounds in Schedule 15 (some mandatory, some discretionary). Examples:
Mandatory: landlord genuine intention to occupy; certain clergy use cases.
Discretionary: arrears/breach where the court considers it reasonable.
On the tenant’s death:
A spouse/civil partner who lived there immediately before death and continues to occupy can succeed to a statutory tenancy.
If no spouse/civil partner, a family member who lived there for the two years before death may obtain an assured tenancy by succession.
Before you buy, verify:
Tenancy start date (pre-1989 suggests Rent Act).
Any registered fair rent (obtain Rent Register entries).
Occupiers (check who actually lives there for succession risk).
Condition/repair and any landlord obligations.
Yield impact (registered rent may be well below market).
A thorough file review, tenant interview, and inspection are essential—particularly common in London where low registered rents persist in prime areas.
If you’re acquiring or managing a property with a potential Rent Act tenancy, please use the contact form on this page, email info@ansons.law, or call 01543 267999 and a member of our Property Team will get back to you.
Disclaimer: The contents of this article are for general information only and do not constitute legal advice. The law and HMRC guidance may have changed since publication. Always seek professional advice before taking action.