How abolishing ASTs could affect care homes

In July 2019, the Government published a consultation paper following its announcement in the spring of 2019 of the intention, in England only, to remove a landlord’s ability to terminate an assured shorthold tenancy (AST) without having to give any reason.

This change would be effected by removing a landlord’s right to serve a Section 21 Notice under the Housing Act 1988. Many residents of care homes occupy their rooms under licences or care agreements; their right to reside arises from a contractual right, which is personal only, ie the care home resident does not have any legal or other interest in the ‘bricks and mortar’ of the building that they occupy.

For owners of such care homes, the proposed abolition of ASTs is unlikely to have any consequences. However, there are also care home operators whose residents do not occupy under such personal licences, but where the two elements of accommodation and care are split into separate documents. In respect of the resident’s accommodation, their right to occupy is granted by a tenancy agreement, which will in almost all cases be an AST.