Lodger, Company Let etc
On the 21 October 2003 The High Court decided, in line with the Office of Fair Trading, that the Unfair Terms in Consumer Contract Regulations (UTCCRs) apply to tenancy agreements and other contracts relating to a transfer of an interest in land.
The main types of Tenancies are
Tenants are considered consumers and Landlords do not enjoy freedom of contract therefore tenancy agreement MUST be compliant with Housing Acts and Unfair Terms in Consumer Contract Regulations (UTCCRs). Unfair terms in tenancy agreements are not binding and landlords cannot rely on nor enforce. Where relied upon there use could result in prosecution for harassment or unlawful eviction.
Common unfair terms include
- Impose excessive interest rate or extra penalty charges for late payment of rent.
- Charge landlord's costs which are unreasonable
- Pay for repairs which are the landlord's responsibility
- Allows the Landlord complete freedom to decide whether they can impose a penalty on the tenant
- Returning the property back in a better state than when originally rented (cleaning clauses can be scrutinised in context of this)
- Grants landlord access to enter the premises without reasonable notice, and in
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