We have seen a rise in queries around whether new tenancy agreements need to be made when tenants have come out of the fixed term. This may be due to the uncertainty that the Renters’ Rights Bill (RRB) has inflicted on landlords, causing them to question and worry about whether they are doing things right. But the simple answer is no.
As it stands today, and at the writing of this Blog, once a fixed term Assured Shorthold Tenancy ends, the tenancy agreement, automatically, by law, moves across to a Periodic Tenancy (on the same terms as the fixed agreement). This therefore means that you do not need to get your tenants to sign a new tenancy agreement of any kind. Your tenancy moves across to a rolling monthly period arrangement whereby you can give minimum of 2 months’ notice and the tenants have to give at least a month’s notice.
What we know to be the case now?
Despite not having to enter into a new AST after the end of the fixed term, you are still able to make changes without a brand new agreement. For example you may be due to change rent or make alterations, in which case you are able to:
Arrange for a ‘Deed of Assignment’ to be completed where there are changes in the tenants named on the agreement
Serve a Section 13 to increase the rent – you must give the tenant at least one month’s notice
Changing the terms of the agreement by way of a ‘Tenancy Addendum’
Please note that you should not amend an existing agreement yourself without taking legal advice. You may find that the clause you have amended has actually been invalidated for example because you have not taken into account the unfair terms rules.
What we know to be the case after the Renters’ Rights Bill?
Of course, with the RRB changes hanging over us we are still a little unclear on how things will actually change in full, but what we know so far is:
All tenancies will become Periodic Tenancies, therefore removing any type of end date. As such the agreements will only state a starting date and the period, usually monthly
Any clauses purporting to increase the rent will be of no effect
In addition, any clauses purporting to inform tenants what they must say or do as regards their ‘notice to quit’ will be of no effect
The tenancy agreement will need to provide information about the possession proceedings which will apply to that tenancy
Tenants will need to give 2 months notice in writing to end the tenancy
Landlords will not be able to give notice during the first 12 months of the tenancy if they are moving in or selling up
The changes will be introduced in one stage – they will apply to all ASTs with existing tenancies converting to the new system
What do we need to know in the meantime?
We are preparing ourselves at the ELA for the transition arrangements whilst the new legislation comes into force so that we are fully appraised of the help our landlords will need for any of their existing situations.
We have taken advice from legal forums for which ELA have access, and the tone is very much ‘carry on as usual’ for the time being.
We will do our best to keep you appraised of the changes, as and when they materialise, to ensure you have up to date information to help you manage your tenancies effectively.
Always email or contact the office if you are unsure as we are here to help and reassure.
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