Can a Periodic AST be changed to fixed term?

cm2011

Hi,

Me and my partner have been renting a house for 3 years now, initially on a short term 6 month contract, which was extended to 12 months, and last March changed to a Periodic Assured Shorthold Tenancy. We have just received a new contract in the post due to come in this March, which changes the contract to a twelve month fixed term Assured Shorthold Tenancy, increasing our rent, and charging us £50 for the privilage!

Can this be done? Although I am not too bothered about the change to the contract as we are not looking to rent for that much longer, I don't see why we have to pay the admin charge for something we haven't asked for.

Can anyone offer any advice for me to approach the letting agency with please?

Thanks

G_M

It can only be done with your agreement. If you don't want a fixed term agreement (and associated fee), don't sign.

You'll continue on a periodic tenancy.

Either ignore it. Or speak to your agent. Or speak direct to your landlord.

cm2011

Hi,

Thanks for that, they have sent the contract through with the instruction that if we did not contact them within 14 days, it would automatically be changed. Is this allowed?

G_M

No. Without your signature the contract is meaningless in law.

clutton_2

they dont need to reissue an AST to increase the rent - They can just issue a Section 13 (2) Notice re Housing Act 1988 about the rent increase. IF they do that - you do have a limited time in which to challenge it.

G_M

clutton is right, but they have not yet done this. If you receive a S13 Notice, that's a different ballgame.

The 14 day deadline they've given you is meaningless and either meant to intimidate you into signing, or is an example of agency ignorance.

tbs624

Write back, thank them for the contract but say that you would prefer to remain on a statutory periodic agreement. As Clutton says, they would still be able to put in for a rent raise via or S13: or they could simply raise it by mutual agreement. LAs don't need to be qualified or to undertake any specific training to set up in business and it may be that your LA hasn't a clue about how to secure a rent increase without issuing a new AST.

If you think that the increase *is* reasonable and would be happy to pay it you can say so in your letter about remaining on a SPA (they don't *have* to issue that S13 if you agree to an increase)

If pursuing the S13 route they *have* to give you a S13 Notice which is equivalent to your rental period ( so a month, if paying per month) and if you wanted to challenge it via the local Rent Assessment Committee you would need to do so before the increase fell due. Bear in mind that the RAC can decide either way, and you'd need to show that that the increase was in excess of local rents for similar properties to stand a chance of being successful.

( As you say you have been on a SPA for a while now, am assuming that you have not had a previous rent increase within the past 52 weeks)

LAs like to know that they have their commission coming in for a set period so that's why they like to push for new Fixed Terms, plus they can try to hammer both LL & T for one of their infamous "admin/renewals fees".

It may be worth you talking direct to your LL. LL can of course choose to issue you with a no fault s21 Notice of Intent to Repossess if he too would actually prefer a new Fixed Term. (Although LA acts on behalf of LL, all too often LL defers to the LA's usual business methods without assessing all options.) However, if you have been a reliable T to date , he would be cutting his nose off to spite his face if he chose that route. Potential void plus a new "unknown " T could soon wipe out any gain he/the LA had hoped to make over the next 12 months....

Just go on a charm offensive and, if necessary, flag up similar properties that may be hanging around unlet or are coming up at a rent similar to/lower than the rent you are already paying. You do have to bear in mind that it works both ways though - LL will know that you would be likely to have to cough up new credit check fees, new deposit etc plus removal costs if you did need to move on soonish.

Did your original FT start after 6 April 2007 or have you signed a new FT after that period btw? It's just that if property is in Eng/Wales and your LL failed to scheme register your tenancy deposit then he would be unable to serve a valid s21 notice until he *did* register the deposit. May all add up to give you sufficient time until you are ready to move on as you mentioned you intend to .