Ending a Tenancy – How to Give Notice Correctly
2 years ago | 11 comments
AST to periodic tenancy confusion?
12:03 AM, 27th June 2024, 2 years ago
6
Hi, I’m considering allowing my ASTs to lapse into periodic (rolling) tenancies, but I’m finding conflicting information about notice periods for rent increases.
According to Section 13, form 4, note 15: The first requirement, which applies in all cases, is that a minimum period of notice must be given before the proposed new rent can take effect.
That period is:
- one month for a tenancy which is monthly or for a lesser period, for instance weekly or fortnightly;
- six months for a yearly tenancy;
- in all other cases, a period equal to the length of the period of the tenancy – for example, three months in the case of a quarterly tenancy
None of this seems to cover a periodic tenancy, how can it when by its very nature it’s open ended? Strangely, although I’ve been pointed towards the Section 13, form 4, it seems it’s not applicable when you first roll over to a periodic structure, but I can’t confirm this.
Here’s what I found:
- The Citizens Advice Bureau (CAB) reiterate the section 13 statement.
- Shelter states it is one month.
- One solicitor says 28 days.
- Another solicitor’s 2 months.
- One letting agent says it’s not relevant if you amicably agree an increase.
- Another says to adopt the 2-month notification used by the section 13 form 4 itself.
I’m rapidly becoming confused and feel like issuing another set of AST until everything gets clarified. But that probably just puts off the problem.
I’m not in dispute with any of my tenants, but I want to get this right to avoid any possible future issues.
I’d appreciate any input.
Thanks,
Tim
Tags:
AST to periodic tenancy transition, housing contract renewal advice, landlord tenant agreements, periodic tenancy rent increase notice period, property management legal advice, rent increase rules UK, rental agreement changes, Section 13 form 4 guidance, UK housing legislation updates, UK rental law notice periods
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Member Since December 2023 - Comments: 1582
9:04 AM, 27th June 2024, About 2 years ago
You can raise the rent as often as you wish with the agreement of the tenant.
One month’s notice is the norm.
You can only use S13 if it’s appropriate (I.e., there is no rent review clause in the contract) once per year.
You have sought a number of opinions but missed this one…
https://www.gov.uk/private-renting/rent-increases
Member Since January 2015 - Comments: 1446 - Articles: 1
10:06 AM, 27th June 2024, About 2 years ago
What does your tenancy agreement say about rolling on to a periodic tenancy? Anything or nothing?
If the TA is silent = statutory periodic. If not silent = contractual periodic
Increasing the rent in a periodic tenancy
The rules on rent increases work very differently for the two types of periodic tenancy.
For contractual periodic tenancies you may insert a rent review clause into your agreement. Provided this is a fair term this increase will be binding on the tenant and the landlord. The landlord can then follow the terms of the clause to increase the rent.
Where no rent review clause exists in the tenancy a landlord may use the prescribed section 13 (form 4) to increase the rent but not until the fixed term is over and 12 months have elapsed since the tenant moved in.
For tenants on statutory periodic tenancies, landlords may not create a rent review clause as the fixed term and statutory periodic tenancy are separate. They must use the Section 13 form instead. However, unlike the contractual periodic tenancy this can be served as soon as the fixed term is over, even if only 6 months have passed since the tenants moved in.
Member Since December 2023 - Comments: 1582
10:18 AM, 27th June 2024, About 2 years ago
Reply to the comment left by Judith Wordsworth at 27/06/2024 – 10:06
Excellent Judith.
Member Since October 2020 - Comments: 1171
4:13 PM, 27th June 2024, About 2 years ago
Tim, the articles you are reading refer to the PERIOD of the tenancy, not the TERM. The period is usually the frequency that rent is paid, so if they were paying rent monthly during the fixed term, the periodic tenancy following it would normally be monthly. The only exception would be if the tenancy agreement says otherwise.
Member Since September 2023 - Comments: 157
11:38 AM, 28th June 2024, About 2 years ago
Reply to the comment left by Judith Wordsworth at 27/06/2024 – 10:06
I was under the impression a section 13 can still be used in a contractual periodic tenancy. So if the rent review clause is missing or limits it to 3%, but market rates are higher, the landlord could issue an s13 instead.
Member Since November 2022 - Comments: 120
8:01 AM, 29th June 2024, About 2 years ago
OP: when a fixed term AST ends it’s replaced by a periodic tenancy. A periodic tenancy has “periods”. Those periods are either what your original AST says they are (a contractual periodic tenancy) or what Housing Act 1988 says they are (a statutory periodic tenancy). In the case of a statutory periodic tenancy the periods will be the same as those for which rent was paid during the fixed term. Most commonly that will be monthly but some ASTs will have rent paid weekly, quarterly or even annually. It really is that simple.