Ending new Rent Act restricted contracts HA 1988 s. 36
Housing Act 1988 section 36 prevents new contracts after commencement from becoming restricted contracts under the Rent Act 1977, barring transitional rules.
A tenancy or other contract entered into after the commencement of this Act cannot be a restricted contract for the purposes of the Rent Act 1977 unless it is entered into in pursuance of a contract made before the commencement of this Act. If the terms of a restricted contract are varied after this Act comes into force then, subject to subsection (3) below,— if the variation affects the amount of the rent which, under the contract, is payable for the dwelling in question, the contract shall be treated as a new contract entered into at the time of the variation (and subsection (1) above shall have effect accordingly); and if the variation does not affect the amount of the rent which, under the contract, is so payable, nothing in this section shall affect the determination of the question whether the variation is such as to give rise to a new contract. Any reference in subsection (2) above to a variation affecting the amount of the rent which, under a contract, is payable for a dwelling does not include a reference to— a reduction or increase effected under section 78 of the Rent Act 1977 (power of appropriate tribunal); or a variation which is made by the parties and has the effect of making the rent expressed to be payable under the contract the same as the rent for the dwelling which is entered in the register under section 79 of the Rent Act 1977. In subsection (1) of section 81A of the Rent Act 1977 (cancellation of registration of rent relating to a restricted contract) paragraph (a) (no cancellation until two years have elapsed since the date of the entry) shall cease to have effect. In this section “ rent ” has the same meaning as in Part V of the Rent Act 1977.
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
This section stops landlords and tenants from creating new restricted contracts under the Rent Act 1977 after the Housing Act 1988 came into force. Restricted contracts were a specific category of agreement under older housing law, often covering resident landlords or arrangements with shared facilities. After the commencement date, no new agreement can qualify as a restricted contract unless it was made pursuant to a contract agreed before that date.
If the parties vary an existing restricted contract in a way that changes the rent, that variation is treated as creating a brand new contract. Because it is a new contract made after the Act came into force, it loses its status as a restricted contract. However, a rent change does not trigger this loss if it is ordered by a tribunal under section 78 of the Rent Act 1977 or if the parties change the rent to match the entry in the register under section 79.
This section also repeals the requirement in section 81A of the Rent Act 1977 that prevented the cancellation of a registered rent until two years had elapsed since the entry was made.
When it applies
- A resident landlord and occupier who held a restricted contract before the Housing Act 1988 came into force agree between themselves to change the rent.
- A tribunal alters the payable rent for a restricted contract under section 78 of the Rent Act 1977.
- Landlord and tenant vary their restricted contract rent to align exactly with the registered rent under section 79 of the Rent Act 1977.
- An application is made under section 81A of the Rent Act 1977 to cancel a registered rent without waiting for two years.
What this section does not say
- New assured tenancies created after the Housing Act 1988 came into force.
- Damages for unlawful eviction or harassment by a landlord.
- Rules governing statutory succession when a protected tenant dies.
That's the law. Now let's settle your problem.
Say what is happening. A neutral mediator hears your side and the other party's, and walks you both to a written agreement. In the advanced settings you can ask for the decision to be reasoned on the Acts of Parliament that apply in England and Wales.
Or open a session directly and invite the other party.
We copy this text from the official publisher and re-check it against that source on every page load, but we cannot guarantee it is complete, current or free of error, and we accept no liability for any reliance on it. An amendment can take effect before a consolidation catches up. The publisher's own copy is linked below; where the two differ, it is the official one that counts.
This page reproduces the text of HA 1988 s. 36 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.