Define: Protected Tenancy

Protected Tenancy
Protected Tenancy
Quick Summary of Protected Tenancy

A protected tenancy refers to a legal status granted to tenants under certain rent control or landlord-tenant protection laws. In many jurisdictions, protected tenancies provide tenants with enhanced rights and protections against eviction, rent increases, or other unfavorable changes to their tenancy. These protections are often granted to long-term tenants who have occupied a property for a specified period, typically under a regulated or controlled rent scheme. The specific rights and benefits of protected tenancies vary depending on the applicable laws and regulations governing landlord-tenant relationships in each jurisdiction. Overall, protected tenancies aim to provide tenants with stability, security, and affordable housing options, particularly in areas with high housing costs or limited rental availability.

Full Definition Of Protected Tenancy

A protected tenancy is a lease that is governed by the Rent Act (1977) and related legislation. Under this legislation, a protected tenancy arose automatically when a person rented a domestic property as his main home. The main characteristics of a protected tenancy were that (1) the tenant could stay as long as he liked unless the landlord would otherwise be reduced to living in a cardboard box in the middle of a motorway, and (2) the landlord could not increase the rent except in accordance with complex statutory provisions. The protected tenancy was very favourable to tenants, but it had two undesirable consequences. First, it led to a more-or-less complete absence of affordable rented accommodation throughout large parts of the UK. Potential landlords would prefer to leave their properties empty rather than risk someone taking an occupation at a low rent forever. Second, it led to the few remaining landlords trying to seek legalistic ways of letting their properties without getting burdened by protected tenants. This led to a barrage of litigation on the difference between a ‘lease’ and a ‘licence’ (see lease or licence).

The Housing Act (1988) disposed of protected tenancies as the default form of residential tenancy. Any new residential property would default to being an assured tenancy. An assured tenancy was less favourable to tenants because, although it offered a measure of statutory protection from eviction, there were far fewer controls on rent. Subsequently, even the assured tenancy was deemed to be too favourable to tenants, and it was replaced in The Housing Act (1996) by the assured shorthold tenancy, which is, on the whole, little more than a licence.

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This glossary post was last updated: 11th April, 2024.

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