Assured shorthold tenancy converted into assured tenancy in error

Contact: Justin Barker, PartnerA decision in the Court of Appeal provides a warning to landlords that have multiple residential properties on their books. The court held that a letter sent in error by a landlord's employee constituted a notice, the effect of which was to convert the tenant's assured shorthold tenancy (AST) into an assured tenancy.

In this particular case, the tenant had been granted an AST for a probationary period of one year. The AST stated that if the tenant successfully completed the probationary period, the AST would be converted to an assured tenancy. The tenant breached the AST and the landlord sought possession of the property before the end of the probationary period.

However, the landlord's housing manager was unaware of the chain of events and sent out a standard letter, stating that the AST had been converted into an assured tenancy due to the tenant's successful completion of the probationary period.

Landlords should ensure they have effective procedures in place to enable them to communicate with their tenants and avoid similar errors.  

For more information, contact Justin Barker, Partner on 020 8221 8000 or e-mail justin.barker@bowlinglaw.co.uk.