Private Residential Accommodation: Long Leases

Abstract

A ‘long lease’ for the purposes of the law of landlord and tenant is one which exceeds twenty-one years. The rent is typically much lower than that chargeable on lettings falling within the discussion in Chapter 11, so since leases subject to a ‘low rent’ — i.e. less than two-thirds the rateable value — are excluded from the protection of the Rent Act (s.5, 1977 Act) and of the Housing Act 1988, insofar as that Act provides security, long leases are almost invariably outside the scope of these two Acts. Nevertheless, some 500,000 households live in such premises and since 1954 they have been given a variety of protection both during and after the end of their leases. Landmark legislation was passed in 1967 although more recent is the Landlord & Tenant Act 1987 which implements the recommendations of the Nugee Committee on management of privately owned blocks of flats. Protection for long lessees varies from other private sector tenants in that there is no restriction on premiums (hardly surprising since these leases exchange hands for sums of money which reflect their market value). There is also no rent control, although with the low rents involved this would anyway be unnecessary. Instead, the legislation concentrates on:

• (a) protection against exorbitant service charges;