Question

To ask Her Majesty’s Government whether they intend that residential leases are to be considered consumer contracts and therefore covered by the Consumer Rights Bill.

Chapter 4 of Part 1 of the Consumer Rights Bill applies to contracts between a trader and a consumer, for the trader to supply a service to a consumer. A residential lease itself is not considered a service, as it is an “interest in land”, and, as such, chapter 4 of the Consumer Rights Bill does not apply. Chapter 2 of Part 1 of the Consumer Rights Bill applies to contracts between a trader and a consumer, for the trader to supply goods to a consumer. Goods are defined as “tangible moveable items”, so do not include land which is immoveable property.

Rights and protections specific to long residential leases are provided through landlord and tenant legislation, including the Landlord and Tenant Act 1985, Landlord and Tenant Act 1987, and the Commonhold and Leasehold Reform Act 2002.

Leases are also contractual arrangements between a landlord and tenant or leaseholder which defines each party’s interests, rights and obligations in respect of the leasehold and, as such, Part 2 of the Consumer Rights Bill on Unfair Terms would apply where the landlord is a “trader” and the leaseholder a “consumer”.

Part 1 and Part 2 of the Consumer Rights Bill will apply to contracts between a trader and a consumer entered into after the Bill comes into force.