2 The Statutory Tenancy
Control of rent
11.21 Following termination of his employment, the landlord may wish to charge a former farm worker (who will be for these purposes a protected occupier) an economic rent for the accommodation provided.
The parties can at any time agree a rent payable under the statutory tenancy. By virtue of s 11(3) of the 1976 Act, however, a rent ‘ceiling’ is applied, in that the agreed rent cannot exceed either the registered fair rent for the dwelling or (if no rent is registered) the weekly or other periodic equivalent of a rent fixed at one and a half times the ratable value of the dwelling.51 The ‘fair rent’ provisions of Pt IV of the Rent Act 1977 are applied to tied cottages by s 13 of the 1976 Act, enabling either party to apply for the registration of a ‘fair rent’ for the dwelling, quantified in accordance with the 1977 Act.5211.22 If no rent has been registered, and the agreed rent is less than the periodic equivalent of one and a half times the ratable value of the dwelling, the rent can be increased to this level by a notice of increase under s 12(2). Where a fair rent has been registered, the agreed rent can be raised to the level of the registered rent by a notice of increase under s 14(2).53 An agreed rent is irrecoverable from the tenant in so far as it exceeds the rent ceiling imposed by the 1976 Act.54 Note that ‘assured’ agricultural occupancies granted after the commencement of the Housing Act 1988 enjoy no rent control on fair rent principles.
Other terms of the statutory tenancy
11.23 The statutory tenancy arises immediately upon termination of the occupier’s contractual license or tenancy. The terms of the statutory tenancy are set out in s 10 of and Sch 5 to the 1976 Act.
11.24 Rent. No rent is payable under a statutory tenancy until there is an agreed rent or notice of increase under ss 12 or 14 (above).55 Rent under a statutory tenancy is payable weekly in arrears, subject to agreement to the contrary.56 A covenant to pay rent in accordance with the provisions of the 1976 Act is implied.57
11.25 With regard to other obligations, the general principle is that, as long as the statutory tenant retains possession, all the terms of the original contract remain enforceable by the parties inter se.58 Subject to this, Sch 5 to the 1976 Act makes special provision for the following.
11.26 Licenses.
Where the original contract was a license, the statutory tenancy is a weekly tenancy, and includes all terms which would have been implied if it had been a contract of tenancy, eg the landlord’s covenant for quiet enjoyment.5911.27 Non-contractual arrangements. The landlord must continue to supply any facilities or services which he previously supplied, but not under the contract, provided these are reasonably necessary for any person occupying the dwelling house as a statutory tenant.60 An example would be the supply of electricity or water supplies by the landlord from his own installations.
11.28 Repairing obligations. Section 11 of the Landlord and Tenant Act 1985 applies.61 This implies a covenant on the part of the landlord to keep the structure and exterior of the property in repair, as well as installations for the supply of water, gas and electricity.
11.29 Non-assignment and user. It is a condition of the statutory tenancy that the tenant will not use the dwelling house, or any part of it, for purposes other than those of a private dwelling house.62 This obligation will be breached if the tenant makes significant business use of the premises: but such a breach of the statutory tenancy can be waived by the landlord and made good, in which event the court may refuse as a matter of discretion to order possession63 The tenant cannot assign, sublet or part with possession of the dwelling house or any part of it.64
11.30 Access. The tenant must allow reasonable access for the execution of repairs. Likewise the landlord must afford such right of access to the premises as is reasonable in all the circumstances, eg over adjoining land not subject to the statutory tenancy.65
11.31 Notice to quit. The tenant must give at least four weeks’ notice to quit, if the original tenancy or license failed to make provision in this regard.66
11.32 Schedule 5, para 12 entitles the parties to vary the terms of the statutory tenancy, provided they do so by agreement in writing. Certain basic terms cannot, however, be varied in this way, eg the application of Landlord and Tenant Act 1985, s 11 or a substantial addition to the land and premises which the tenant is entitled to occupy, or variation of the circumstances in which the tenant can give notice to quit.67