Renting A Home - A Guide for Tenants

In many cases the tenancy created will be an Assured Shorthold Tenancy in accordance with the Housing Act 1988.

This applies to all tenancies where the rent is under £25,000 per annum, and the tenant is an individual or individuals for whom the property will be their main or principal home, and where the landlord is not resident in the property during the tenancy as defined by the Housing Act. Where the tenancy does not fall within the scope of the 1988 Housing Act, a Company or Contractual Tenancy will be arranged.

Administration Fee

We charge an administration fee to both the landlord and the tenant for the preparation of the tenancy agreement (and any subsequent renewal or extension documentation). The amount payable by the tenant is £75 plus VAT for the initial tenancy agreement and thereafter £75 plus VAT for any subsequent renewal or extension document.

Stamp Duty

Stamp duty is payable to the Inland Revenue on all residential property tenancy agreements above a certain rental threshold (currently £5,000 per annum at the time of producing this leaflet). You will be responsible for stamping and paying the stamp duty applicable on your part of the tenancy agreement (the original part signed by the landlord which will be forwarded to you for safe keeping at the start of the tenancy).

For furnished tenancies of less than one year, the duty payable on the original agreement (signed by the landlord) is £5. For unfurnished tenancies and for tenancies of one year or more, the duty is 1% of the annual rent.

Whilst it is not compulsory to have the tenancy agreement stamped for there to be a legally valid tenancy, an unstamped tenancy agreement is technically inadmissible in court. It is possible to have the tenancy agreement stamped at such time as it may be required for court evidence, but penalties are payable if issued more than 30 days after the tenancy starts.

At the time of producing this leaflet it is expected that changes to stamp duty land tax will be introduced from 1 December 2003. At that time, subject to the above proposals being passed, the zero rate band threshold will increase to a figure currently stated as £60,000 over the term of the tenancy. In addition the existing duty differentials relating to the length of the tenancy and whether or not the property is furnished will no longer apply and full duty will be payable on all qualifying tenancy agreements. We therefore advise that you seek clarification in regard to your tenancy.

Further information can be obtained from the Inland Revenue Stamp Office Helpline on 0845 6030135 or at www.inlandrevenue.gov.uk/so.

The Rent

Unless otherwise stated, the rent will be exclusive of telephone, water, gas, electricity and council tax, which are payable by the tenant direct to the utility companies. Any ground rents or service charges applicable to the property are payable by the landlord.

The first payment is due on or before the start date of the tenancy in the form of cleared funds ie Bankers Draft. A personal cheque or cash is not acceptable.

Thereafter the normal method of rental payment is by calendar monthly instalments payable in advance by standing order. Rents are due on the date shown in the tenancy agreement therefore standing orders must be dated 3 days in advance of this date to ensure the rent is received on time.