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Local Government - June 2009

Schedule 11 of the Housing Regeneration Act 2008 was brought into force on the 20 May 2009.

What does this mean?

This Schedule abolishes the status of tolerated trespasser.  Schedule 11 does not however deal with the situation deal where a possession order has already been made and the Landlord has subsequently transferred its interest.  Parliament rectified this situation through the Housing (Replacement of Terminated Tenancies) (Successor Landlords) (England) Order 2009 which also came into force on the 20 May 2009.

Existing tolerated trespassers

1.  The tenancy ends the date the Order for Possession is executed rather than the date that the Possession is to be given up and so in future no new tolerated trespassers will be created.

2.   All tolerated trespassers, as long as they meet relevant conditions within the regulations, will become replacement tenancies.  The type of tenancy they obtain depends upon whether previously they would have been assured, secure etc.  The conditions are:

2.1 The property remains the only or principle home of the tenant or at least one of the joint ex tenants has done so throughout the period between the tenancy coming to the end and the commencement date. 

2.2  The old landlord or new landlord is entitled to let the property.

2.3  The parties have not already entered into a new tenancy before the commencement date.

2.4  The terms and conditions remain the same save for rent or mesne profits that have increases during the period of occupation).

2.5  The court can still make discharge order imposing different types of condition when the Possession Order is made.

2.6   Any Possession Order which is already discharged to be treated as still applying to the new replacement tenancy.

3.   The tenancy is one continuing tenancy for the purposes of the qualifying period discount and for any claim for rent arrears. There could be an issue about whether the occupier could lose their right to buy unless they apply back to court to discharge the original Possession Order and reinstate their tenancy.  This is something that apparently the government are looking to rectify as in compliance with consultations requirements.

4.   The landlord is obliged to consult tenants before taking certain action.  Certainly this applies to any secured tenancies although this will be subject to contractual terms.  Consultation carried out during the tolerated trespasser period will not be invalidated as a result of failure to consult ex tenants or consultations of ex tenants.   

Sian Evans, Partner
Property Litigation Team
sian.evans@weightmans.com