Assured shorthold after demoted tenancy HA 1988 s. 20C
Under s.20C, a demoted tenancy from a registered provider becomes a fixed term AST of at least 2 years if notice served before it would cease to be an AST.
20C Subsection (2) applies if— section 20B applies to an assured shorthold tenancy of a dwelling-house in England (“the demoted tenancy”), the landlord is a private registered provider of social housing, the demoted tenancy was created by an order under section 6A made after the coming into force of section 163(2) of the Localism Act 2011, the assured tenancy that was terminated by that order was an assured shorthold tenancy that, whether or not it was a fixed term tenancy when terminated by the order, was granted for a term certain of not less than two years, apart from subsection (2), the demoted tenancy would cease to be an assured shorthold tenancy by virtue of section 20B(2) or (4), and the landlord has served a notice within subsection (3) on the tenant before the demoted tenancy ceases to be an assured shorthold tenancy by virtue of section 20B(2) or (4). The demoted tenancy does not cease to be an assured shorthold tenancy by virtue of section 20B(2) or (4), and at the time when it would otherwise cease to be an assured shorthold tenancy by virtue of section 20B(2) to (4)— it becomes an assured shorthold tenancy which is a fixed term tenancy for a term certain, and section 20B ceases to apply to it. The notice must— state that, on ceasing to be a demoted assured shorthold tenancy, the tenancy will become an assured shorthold tenancy which is a fixed term tenancy for a term certain of the length specified in the notice, specify a period of at least two years as the length of the term of the tenancy, and set out the other express terms of the tenancy. Where an assured shorthold tenancy becomes a fixed term tenancy by virtue of subsection (2)— the length of its term is that specified in the notice under subsection (3), and its other express terms are those set out in the notice.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
Under section 20C, a demoted assured shorthold tenancy (a tenancy created by a court order under section 6A after the Localism Act 2011) would normally cease to be an assured shorthold tenancy when the demotion period ends. However, if the landlord is a private registered provider of social housing and the original tenancy that was demoted was an assured shorthold tenancy granted for a fixed term of at least two years, the landlord can prevent that by serving a notice before the tenancy would cease to be an AST.
The notice must state that the tenancy will become a fixed term assured shorthold tenancy for a term of at least two years, and must set out all the other express terms of the new tenancy. If the landlord serves such a notice, the tenancy does not cease to be an AST; instead it becomes a fixed term tenancy with the length and terms specified in the notice. Section 20B then ceases to apply to it.
When it applies
- A tenant who had a demoted tenancy from a housing association receives a notice from the landlord saying the tenancy will become a fixed term assured shorthold tenancy for three years.
- A landlord, a private registered provider, wants to ensure that after the demotion period, the tenancy remains an AST so they can use section 21 possession procedures later.
- A tenant whose original tenancy was for two years and then demoted; the landlord serves a notice specifying new terms like rent and deposit.
- A court order under section 6A created a demoted tenancy after the Localism Act 2011 came into force.
- A tenant mistakenly thinks the demoted tenancy will automatically become a periodic assured shorthold tenancy, but the landlord's notice changes it to a fixed term.
What this section does not say
- This section does not apply to demoted tenancies that were created by a court order before the Localism Act 2011 came into force (section 163(2)).
- It does not apply to demoted tenancies where the landlord is not a private registered provider of social housing (e.g., local authority or private landlord).
- It does not apply to demoted tenancies where the original assured tenancy was for a term of less than two years.
- It does not cover the content of the notice beyond the requirement to specify the term length and other express terms (e.g., it does not prescribe the form of the notice).
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This page reproduces the text of HA 1988 s. 20C in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.