46.Section 15 introduces new section 20B into the Housing Act 1988 which sets out the legal basis for the form of demoted tenancy that can be used by registered social landlords. A demoted assured shorthold tenancy is an assured shorthold tenancy during the demoted period but there is provision for the demoted assured shorthold tenancy automatically to turn into an assured tenancy after one year unless the landlord has issued a notice of proceedings for possession during that year.
47.If a notice is issued the tenancy will remain a demoted assured shorthold tenancy beyond the first year until the notice is withdrawn or six months have passed and no proceedings have been issued; or, if proceedings have been issued, until they are determined in favour of the tenant.
48.A demoted assured shorthold tenancy can be ended at any time during the demotion period. Unlike non-demoted assured shorthold tenancies a possession order granted on the basis that the landlord has given the required notice under section 21(4) of the Housing Act 1988 can take effect within the first six months of the tenancy.