Crown goes to court over regulated tenancies

The Crown Estate is appealing to the High Court in an attempt to find out what should happen to the 400 regulated tenancies that it is transferring to housing estate Peabody. Last October, the Crown signed a deal to transfer the ownership of 1,230 affordable homes on five sought-after estates in central London to Peabody for £150m. However, under the Housing Act 1988, the status of regulated tenancies automatically changes after a sale. The Crown is seeking clarification from the court as to whether the leases in Cumberland Market, Millbank, Victoria Park and Lee Green housing estates, should become secure tenancies or whether they should become assured tenancies. Secure tenancies are the most common form of tenancies provided by local authorities and allow tenants to remain in their homes for as long as they want so long as they do not break the rules. Assured tenancies, on the other hand, have the right to remain in their homes only for a fixed period. A Crown Estate spokesman said: “The Crown Estate has taken steps to ensure that regulated tenants’ specified rights will be protected after a sale regardless of whether they become assured or secure tenants. To do this, it will provide an addendum to each resident’s individual regulated tenancy agreement so that, even if regulated tenants do become assured tenants, it will have little or no practical effect on their rights in respect of rents, security of tenure, succession, consultation by their landlord or taking in lodgers.”