UK Landlord Forum / Life

We have let our house out through an estate agent and every year they have arranged a tenancy renewal agreement, whereby we have the opportunity to raise rent or to cease the agreement. I have just noticed that they didn't arrange a renewal last year and they now tell me that the tenancy is running on a periodic month to month basis and not a fixed term?  Please can I ask advice on this because we weren't told of the change.

What you describe as a change is rather a continuation... or even no change. So the opposite of what you think.

An AST moving to a SPT means the same terms and conditions exist, just as they always did. The notice terms have now changed. You will be avoiding paying fees for new agreements.

Quote from: Ganddhill on March 05, 2023, 02:22:10 PMPlease can I ask advice on this because we weren't told of the change.

Overall, automatically rolling on from an Assured Shorthold Tenancy (AST) to a Statutory Periodic Tenancy (SPT) is a good thing. It's ideally what ought to have been allowed to happen at the end of of the initial 12 month's contract.

I presume that your agent has been charging you a fee each year to renew the tenancy. Bad agent! They should have advised you that there was a choice of a new fixed term AST or letting it become an SPT. In the latter case. if the tenant continues to pay rent and it is accepted by the landlord, the tenancy will continue on a periodic, rolling basis.

You will have no tenancy renewal fees in future.

As Hippogriff says, the terms of the agreement remain the same, with the exception of the notice periods:
- the tenant needs to give a minimum of one month's notice of intention to quit
- the landlord needs to give 2 month's notice to quit

This gives you and your tenant more flexibility.

You can still raise the rent on an SPT. See your tenancy agreement for any terms associated with rent increases. The usual procedure is to do this once a year.