Stay on periodic or sign new fixed tenancy agreement?

Elston

Hello,

My son and his wife have been renting an apartment for around 16 months from a private landlord. The original term, I believe was for 6 months so from what I've read on here, their tenancy is now a periodic, 'rolling' one.

They recently received notice of a rent increase from October and have been informed they can stay on the rolling tenancy or sign a fixed term agreement for 6 or 12 months.

I'm just a bit wary as to why they are now being given these options, especially with the possibility of the Renters' Reform Act becoming law over the next 12 months. Security-wise, and from the point of view of future rent increases, would they be better sticking with the periodic, rolling agreement or signing a new fixed term agreement? 

Any advice would be much appreciated. 

Thank you. 

Mark_d

If they want to stay there long term and are happy with the increased rent then I would say that have more protections with a new 12 month agreement.
I don't know your/their situation but my family have never been happy in rental accommodation.  It's never felt like home.  Our current property is now worth 3/4 of what we paid for it but we're happy and the property value doesn't really matter until you come to sell.

Elston

Mark_d said:

If they want to stay there long term and are happy with the increased rent then I would say that have more protections with a new 12 month agreement.
I don't know your/their situation but my family have never been happy in rental accommodation.  It's never felt like home.  Our current property is now worth 3/4 of what we paid for it but we're happy and the property value doesn't really matter until you come to sell.

Thanks for the advice. To be honest, they haven't had happy experiences of renting over the past few years. They had to vacate one property as the landlord hadn't been paying his mortgage and it was being repossessed. With their last house, they were given a Section 31(?) notice as it was sold on. They were originally told they could stay but then the new landlord decided he wanted vacant possession. We suspect it was just an excuse to put back on the market at a much increased rent. 

Add to that the hassle getting things fixed/maintained, and it's far from ideal. And as you say, rentals never feel like home due to the lack of security - you can be given 2 months notice to quit at any time (although I assume you can't be evicted during the term of a fixed term agreement?). 

elsien

You can be given two months notice to quit, but you don’t have to leave after two months. Technically the landlord would have to go to court for possession after the section 21a had expired although if you want a decent reference, that’s not the best way to be going on.

You can’t be evicted during fixed term agreement, but if I was signing a 12 month one I would want a break clause in case my circumstances changed. 

Gentoo365

The timing is probably not suspicious. Just maybe an estate agent wanting to get a fee from the landlord for securing another fixed term.

As above, whether to take it depends on how long they plan to stay.

Grumpy_chap

It is up to them whether they stay on the periodic tenancy or go for another fixed term.
Some people (tenants and LLs) like the succession of fixed terms as it gives an indication of intent for both parties - the tenants have an indication that they are secure in the property and the LL has an indication with regard to future income stream.  It is only intent as either party can still serve notice, subject to the terms.

Jemma01

I personally chose periodic so I can exit quickly if I wanted to. But if they need security from constant rent increase, then fixed term with 6 months breaking clause.

WellKnownSid

Elston said:

from the point of view of future rent increases, would they be better sticking with the periodic, rolling agreement or signing a new fixed term agreement? 

Rent can only be increased once a year with a periodic tenancy.  Signing for 6 months would I believe allow the landlord to increase the rent at the end of the fixed term (in England)

RHemmings

Is it common that tenants are offered the choice of new fixed term or rolling? In situations similar to this that I'm aware of (including personal experience) it seems to me to be common that the EA/landlord will be asking for a fixed term extension, rather than offering a choice. 

Offering a choice sounds quite tenant friendly to me. 

GrumpyDil

It's up to the parties involved.. Landlord can ask for fixed. Tenant can refuse at which point landlord has choice of rolling or eviction.

Unless tenants are ones I would want to get rid of I'd allow it to roll. 

RHemmings

GrumpyDil said:

It's up to the parties involved.. Landlord can ask for fixed. Tenant can refuse at which point landlord has choice of rolling or eviction.

Unless tenants are ones I would want to get rid of I'd allow it to roll. 

This is exactly what happened to me. I brazened it out and the landlord accepted rolling. The OP's situation in this thread is a much better one - they have choice without having to do this.