RESIDENTIAL TENANCIES ACT & INFORMATION

The BD14565_2.gif Residential Tenancies Act 2004 contains far reaching reforms of the private rented sector. A large portion of the Act came into operation on 1 September 2004, including: improved security of tenure through a system of 4-year tenancy cycles; new tenancy termination procedures that involve longer notice periods linked to length of tenancy; establishment of a statutory Private Residential Tenancies Board (PRTB); a new system of tenancy registration with the PRTB; voluntary renunciation of the right to long-occupation equity leases; higher penalties for offences relating to standards and registration of private rented accommodation; and extension of local authority powers to address anti-social behaviour.

The remainder of the Act came into force on 6th December 2004. These include provisions for a new dispute resolution service through the PRTB instead of the Courts, involving mediation or adjudication and tenancy tribunal hearings. They also include provisions setting out clearly the statutory tenancy obligations of landlords and tenants and providing that landlords will not be entitled to seek a rent greater than the market rate and that rent reviews (whether up or down) may not occur more than once a year unless warranted by a substantial change in the nature of the accommodation.

Tenancies in existence on 1st September 2004 became 'Part 4 tenancies' on 1st March 2005 unless a valid Notice of Termination was served before that date. Part 4 tenancies can only be terminated by the landlord on specified grounds (in accordance with the Act) and by either party by Notice of Termination under the Act in accordance with section 62. Unless terminated, they last for 4 years from their commencement date or from 1st September 2004, whichever is later. If a fixed term tenancy is due to expire during the existence of a Part 4 tenancy and the tenant intends to remain in occupation, the tenant must, during the 2nd last or 3rd last month of the fixed term, notify the landlord of that intention to continue the tenancy.

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