Read more about how new rolling tenancies will be set up and the and the new ban on rental bidding.
The Act impacts all Assured Shorthold Tenancies (ASTs), including both new and existing tenancies, but excludes company lets and rents over £100k/year. When you work with us, you benefit from experienced, expert guidance—we’ll help you navigate what these changes mean in practice.
What’s changed with setting up new tenancies?
Landlords and tenants will no longer agree fixed tenancy periods when a tenancy starts. Instead, tenancies will run from month-to-month from day one until either the tenant serves notice, or the landlord meets one of the grounds for regaining possession of the property.
These tenancies will be known as Assured Periodic Tenancies.
Key considerations
- Historically, tenants and landlords may have opted to include break clauses. These won’t be valid or required with a periodic tenancy.
- During the first 12 months of any new tenancy, landlords will not be allowed to move back into their property or attempt to sell it unless they sell to another landlord who will take over the tenancy. This means tenants will have a 12-month protected period; however, a tenant can serve notice to terminate during this period. Tenants will be required to give two months’ notice to leave and this must be in line with the rent payment date.
- Our data shows that on average tenants stay in their rented property for at least two years and we also know it’s more common for a tenant to serve notice rather than the landlord.
- We don’t expect tenants to change their existing renting pattern; tenants will continue to move for a variety of reasons.
- Rental Bidding will also be prohibited. This means that when a property is marketed, an asking rent for the property will need to be displayed and you won’t be able to accept offers above this rate during the tenancy negotiation process.
We’re Here to Help
You’re not expected to navigate these changes on your own. When you instruct us to let your property, we’ll provide guidance to help you understand the new legislation, answer any questions, and help you make the right decisions for you. Whether you’re planning ahead or wanting to review the situation of your current tenancy we’re always happy to talk things through.