UNFAIR TENANCY TERMS

In 1998 a group of advice agencies led by Greenwich Council's Housing Aid Centre, jointly commissioned a barrister's opinion, which persuaded the Office of Fair Trading that a European directive on consumer contracts should apply in relation to tenancy agreements. The 1995 directive is one that says that consumers would be able to trade more confidently if all standard consumer contracts were written in plain English and if such contracts contained no unfair terms.

Some contract terms in standard housing contracts / agreements may be unfair and unenforceable. Only certain terms can be scruitinised for unfairness. As long as a contract term accurately reflects statutory enactment it is exempt from scrutiny. Core terms that describe the property, rent or length of agreement term are also exempt as long as they are written clearly and displayed prominently. Rent increase clauses can be scruitinised for unfairness.

A term is unfair and legally unenforceable if it has the potential to cause a significant imbalance to the detriment of the tenant contrary to the requirement of good faith. The Office of Fair Trading has the power to apply to the courts for an injunction to get the unfair term removed from the contract. A term in Camden Council's tenancy agreement was held by Clerkenwell County Court to be unenforceable as it gave the council to sole right to decide what constituted unreasonable behaviour. Blyth Borough Council had to amend 10 terms in it's secure tenancy agreement.

The regulations apply to all standard written residential tenancies, leases and licenses.

The Office of Fair Trading Tel 0870 6060 321 produces a booklet on unfair tenancy terms.

If your Federation would like to a 'health check' on you tenancy agreement Please contact the London Tenants Federation for further details.

• Tenancy Issues

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