Regulated tenancy
A regulated tenancy is an older form of private tenancy usually created before 15 January 1989 under the Rent Act 1977. The occupier is a residential tenant in the Private Rented Sector (PRS), but enjoys much stronger rights than under an assured tenancy or former assured shorthold tenancy (AST).
The key features for a landlord are rent control and very strong security. The rent is a registered “fair rent”, set by the rent officer or tribunal, and can only be increased by using the statutory process, not simply by serving a Section 13 notice or relying on the tenancy agreement. When you buy a property with a regulated tenant in place, you acquire it with a sitting tenant whose low, controlled rent can significantly reduce capital value.
Security of tenure is also much higher. You can usually only recover possession on limited possession grounds, and often only after persuading the court that it is reasonable and obtaining a possession order.
The Renters’ Rights Act does not abolish regulated tenancies, but its wider rental standards, fit for human habitation duties and enforcement tools, such as the Private Rented Sector Ombudsman and PRS Database, apply to these homes too. In practice, regulated tenancies are a shrinking but legally complex part of many long held property portfolios.
Also see our landlord blog articles.
