Assured and assured shorthold tenancies

Assured tenancies

The Housing Act 1988 (HA 1988) replaced the Rent Act 1977 (RA 1977) security of tenure regime for residential tenants (although there are still a significant number of Rent Act tenancies in existence, as the RA 1977 regime effectively provides security of tenure for life and succession rights, save for the landlord's right to obtain possession in certain circumstances. See: Private residential tenancies—overview).

Accordingly, tenancies granted on or after 15 January 1989 and before 28 February 1997 were likely to automatically be assured tenancies (ATs) governed by HA 1988 (unless the tenancy was a renewal of an existing Rent Act tenancy), provided they meet the relevant criteria set out in HA 1988, s1(1) and do not fall within the exceptions in HA 1988, Sch 1, Pt 1.

For further guidance, see Practice Note: Assured and assured shorthold tenancies—granting.

Assured shorthold tenancies

Following amendments to HA 1988 by the Housing Act 1996 (HA 1996), tenancies granted on or after 28 February 1997 are likely to automatically be assured shorthold tenancies (ASTs) governed by

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Insolvency, declarations of trust, loan agreements, artificial asset protection, sham transactions, transactions defrauding creditors, interspousal asset transfers, change of position defence and wife’s entitlement to share of husband’s assets (Sayers v Dixon)

Restructuring & Insolvency analysis: The court held that six declarations of trust (DoTs) executed by the transferor (Mr Dixon) in favour of his wife (Mrs Dixon) constituted transactions defrauding his creditors within the meaning of section 423 of the Insolvency Act 1986 (IA 1986) and that two of them, purporting to transfer all his future assets and income to Mrs Dixon, along with an accompanying loan agreement, were shams which were void and ineffective. It set aside the DoTs and ordered Mrs Dixon to restore the value of three transferred properties (which had been converted into £551,589 cash) to Mr Dixon’s trustees in bankruptcy (trustees) together with interest of £101,726. It also ordered an account to be taken of the funds that had been transferred to Mrs Dixon or on her behalf by Mr Dixon over the seven years between the date of the DoTs and his bankruptcy. The court dismissed Mrs Dixon’s defence of change of position to the trustees’ claim for restoration, finding that even if such a defence were generally available (which is unclear), she had not acted in good faith and could not rely on it. It also dismissed her defence that, having been married to Mr Dixon for many years, she was entitled to half his assets and/or an entitlement to a share of them by virtue of a right to be maintained. Written by Jonathan Lopian, barrister at New Square Chambers, who acted for the successful claimants.

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