Common Law Tenancy

In the UK property market, common law tenancies occupy a specific niche, generally applicable when the rental arrangement falls outside the scope of the Housing Act 1988. This includes situations where the annual rent exceeds £100,000, the property is not the tenant's main residence, or the landlord does not live in the property. Unlike assured shorthold tenancies (ASTs), common law tenancies offer greater flexibility in terms and conditions, as they are not bound by standard AST regulations.

These tenancies are governed by the common law of contract, meaning that many of the protections and processes defined in the Housing Act—such as those relating to deposit protection, eviction notices, and rent increase procedures—do not automatically apply. Instead, the terms of the tenancy are primarily determined by the agreement between the landlord and tenant. This arrangement allows for tailored tenancy agreements but necessitates a thorough understanding of the contract by both parties to ensure fair and clear terms.

Common law tenancies provide a unique framework within the UK property market, suited to specific tenancy situations that fall outside standard regulations. They offer the opportunity for customized rental agreements, emphasizing the importance of a well-drafted contract and a clear understanding of both parties' rights and responsibilities. Whether you're a landlord or a tenant entering a common law tenancy, it's essential to approach these agreements with care and consideration to ensure a fair and equitable arrangement.