- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 18 Jun 2018
Hybrid assured shorthold tenancy
In January 2017, in a decision that will be required reading for property landlords, the Court of Appeal has confirmed the validity of a form of assured shorthold tenancy that has been in common use for many years. At the same time, the Court defined the concept of ‘ownership’ in the context of council tax liabilities.
The case of Leeds City Council v Broadley concerned a property investor who rented out residential premises to tenants on the basis of standard form leases that are ubiquitous in the private rental sector. Each lease was for a term of six or 12 months and thereafter continued on a month-by-month basis. The obligation to pay council tax rested on the tenant.
Putting forward a novel argument, a local authority submitted that leases must either be for a fixed or a periodic term and that ‘hybrid’ leases are invalid. It was submitted that the lease concerned in the case had to be viewed either as for a fixed term, followed by a periodic tenancy, or as a monthly periodic tenancy that could not be terminated in its first six or 12 months.
On that basis, the council argued that the lease had not been granted for a period of six months or more and that relevant tenants could thus not be viewed as ‘owners’ within the meaning of Section 6 of the Local Government Finance Act 1992. That, it was submitted, meant that when a tenant ceased to occupy a property during the term of the lease, the liability to pay Council Tax reverted to the landlord.
In rejecting those arguments and dismissing the council’s appeal against an earlier decision to like effect, the Court found that the form of lease in question was valid. Such leases reflected an obvious commercial reality and provided a benefit to both landlord and tenant in offering a degree of initial certainty with a degree of flexibility thereafter.
 Related articles on Designing Buildings Wiki
Featured articles and news
Dr Nicholas Falk, director of the URBED Trust, explains why metro cities are the future of urbanisation.
From next week, UK firms can bid for a share of a £12.5m fund to boost productivity, performance and quality.
A right to light generally refers to the right to receive sufficient light through an opening.
Interference and compatibility - the effects of electromagnetic fields in the workplace.
Important action is being taken to inspire young people to train as engineers.
A survey of Leicester’s historic buildings resulted in local listing being taken more seriously.
Demolition is the most high risk activity in the construction sector. Read our introductory article here.
BSRIA report on the domestic boiler market, with China recording the most 'dynamic market uptake'.
Do we really know everything important about the impacts of our infrastructure projects? And if we don’t, does it matter?
Former Chief executive Richard Howson blames government for being 'poor payers'.