1988: The Invention of the AST
The Housing Act 1988 invented the Assured Shorthold Tenancy (AST). By giving landlords the guaranteed right to evict, it resurrected the private rental sector.
Throughout the mid-20th century, the private rental sector in the UK was dying. Strict rent controls and heavy security of tenure laws meant that once a tenant moved in, it was almost impossible for a landlord to increase the rent or evict them. By the 1980s, private renting had shrunk to less than 10% of the housing market.
The Power to Evict
The Housing Act 1988 changed everything. It deregulated rents and introduced the Assured Shorthold Tenancy (AST). The critical feature of the AST was Section 21—the 'no-fault eviction'. For the first time in decades, landlords were guaranteed that they could regain possession of their property at the end of a fixed term.
This legal certainty gave banks the confidence to lend against rental properties, directly paving the way for the creation of the Buy-to-Let mortgage in 1996. While tenant groups have heavily criticised the insecurity of ASTs (leading to the Renters (Reform) Bill seeking to abolish Section 21), there is no doubt that the 1988 Act single-handedly saved the private rental sector from extinction.