With effect from 1 October this year, the law changes, automatically, so that if a property has been let between 15 January 1989 and 28 February 1997 at an annual rent of more than £25,000, it will now become a secure assured tenancy from that date.

Whilst the dates and rental levels mean that there will not be many houses caught by this change, those that are trapped will obviously see a fall in freehold values.

To avoid an assured tenancy being created, take advise now, and plan your action, such as getting the tenant to move out of the house for a short time, before moving everything back in and a new tenancy being created.

If a new tenancy is created now it will be an assured short-hold one if the rent is below £100,000, and also provided it is not a letting to an agricultural worker.

Where a house is to be let to an agricultural worker, it is still the one case where a prescribed notice must be served before the tenancy is granted if security of tenure is to be avoided.  This applies to any level of rent, however small.

For more information on assured tenancies and letting houses on farms, and generally, please contact either Jonathan Long or Jeanette Dennis.

This article is for general information purposes only and does not constitute legal or other professional advice. You should not act or rely upon this information.

Author: Jeanette Dennis, Agricultural Solicitor

Date: August 2010