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Losing restricted contract status

This content applies to England

Situations where restricted contract status will be lost.

Restricted contract lettings where the contracts were made before 15 January 1989 may continue to enjoy the limited protection described above. However, any variation in rent since the above date, unless it is varied by the First-tier Tribunal (Property Chamber),[1] will be regarded as a new contract and restricted contract status will be lost.[2]

Variations in other terms of the tenancy may be sufficient to create a new contract where they are so fundamental as to alter the nature of the letting. Such occupiers will become assured, unprotected or excluded occupiers (see below and the section on excluded occupiers).

No new restricted contract tenancies could be entered into since the Housing Act 1988 came into force on 15 January 1989. Occupiers with resident landlords whose occupation started after this date cannot be assured tenants.[3]

Some will have the basic security granted by the Protection from Eviction Act 1977 but others ('excluded tenants') will only have to be given reasonable notice (or the notice specified in their contract) prior to eviction (see the section on occupiers with basic protection). If the tenant is provided with board or attendance, this will not prevent the tenancy from being assured.

[1] Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 SI 2013/1169; the First-tier Tribunal and Upper Tribunal (Chambers) (Amendment) Order 2013 SI 2013/1187. 

[2] s.36(2),(3) Housing Act 1988.

[3] para 10, Sch.1 Housing Act 1988.

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