Is transfer fair?
What are the implications of the unfair terms in the 1999 Consumer Contracts Regulations 1999 for the stock transfer process? I understand that the Office of Fair Trading has persuaded Blyth Valley council and the Cosmopolitan Housing Association to amend various clauses in their tenancy agreements, including rent increase clauses. The transfer guidance fails to mention these regulations. What should a local authority do if it thinks existing clauses in its tenancy agreement are contrary to the CCR? Should secure tenants be able to get advice from the independent tenants' adviser on whether their proposed assured tenancy agreement complies with the CCR? What are the risks of a legal challenge under the Human Rights Act?

Yes, yes and yes. Yes, the unfair contract terms in the CCR do apply to tenancy agreements. Yes, the Housing Transfer Guidelines expect post-transfer tenancy agreements to preserve tenants' pre-transfer rights, but taking out terms that might be considered unfair under the CCR will improve rather than harm tenants' rights. And yes, if a local authority suspects the terms of its secure tenancy are unfair, it should look to amend them. If they do not, then the advisers to the landlord taking a stock transfer will probably raise this when negotiating the new tenancy.

As to the application of the Human Rights Act, if the issue is covered by the CCR then the Human Rights Act is unlikely to impinge, although possession action on the basis of an unfair tenancy obligation could result in a challenge under the Human Rights Act and the regulations.
Nick Billingham: partner, Devonshires

Water bill bother
Our housing co-op paid water bills for only one property for some years, presuming it to be rates for the whole co-op. Later, Thames Water realised its error and issued backdated bills for other tenants. Those who avoided meeting the water board did not receive a bill at the time. The finance worker and the treasurer decided to get all members to agree that the co-op paid all the backdated bills up to the date that it paid the bill for that one property. The treasurer got everyone's agreement and informed the finance worker that all was well. A statement was written to represent the co-op's actions. This statement supported the accounts to the auditors for that year. A year later, one of the tenants who avoided meeting the water board has finally been reached by it but received a bill only for the current year – that is, not backdated. She insists she was never privy to the conditions of the arrangement that were in the statement that went to the auditors and that her understanding was that the co-op would pay everyone's first bill. Her bill is outside the period that the co-op's payments were made but has now been paid, on her insistence. The statement that went to the auditors was not signed by members. Was she right? If not, what should the co-op do?

You need to look at two things. How was the decision made that the co-op would meet water bills up to a certain point? If the rules were followed then it will bind her, unless it conflicts with her tenancy agreement.

The second issue is the tenancy agreement. Does it say the landlord will pay water charges, or collect them for the water company? If it does not, then she is liable for her charges. The co-op made an agreement to meet certain old water charges but otherwise tenants must pay their own. If the tenancy agreement says nothing, then that would mean tenants should be paying their own bills, unless there is some form of collective meter. If her tenancy agreement says the landlord is to pay water charges, then the co-op will have to pay them (and for other tenants as well) until you change the tenancy agreement.

You may want to try to resolve the dispute in a general meeting.
Catherine Hand Partner at solicitor Jenkins & Hand