Landlord wishing to enforce a new AST just at the 'renewal' of the current one

SuperCurious

Hi

I'm looking for guidance on best next steps regarding my rental agreement.  Will give all the details so there are no grey areas.

I moved into my rental home on the 1st February 2024.  I signed the standard AST which was locked for 12 months with a Break Clause stating 'It is agreed that after 10 months, two months notice may be given in writing by either Tenant or Landlord to terminate this agreement.'

In August, the EA sold their property portfolio to another EA and I changed the standing order to their bank and last week got confirmation that the deposit was moved into MyDeposit via them with the recognition 'We understand from your Landlord/Agent that you are now extending your stay in the property on a Statutory Periodic Tenancy'

I emailed the EA on 18th November asking next steps now that the 10 month mark was approaching and that I'd like to stay and only heard back from them in the last two weeks.  They verbally said that the new EA wanted to introduce a fixed 12 month contract with a nominal 3% rental increase.  I said I'd prefer to keep the contract as-is whilst agreeing to the rent increase from the new term from 1st February 2023.

The EA confirmed this in an email regarding the rental increase AND 'You mentioned that you would prefer not to enter into another fixed-term agreement, so I propose a 12-month fixed-term lease with a break clause allowing you to give two months' notice at any time during the term. Essentially, this would give you the flexibility you need while still providing a clear commitment for a two-month period'

Unfortunately, I didn't register that the terms were different for me, going from the statutory one month's notice for me and two month's notice for my LL.  

I emailed them last weekend saying I was confused as was expecting a like4like contract to the one currently in place.

They emailed me over a new AST for 12 months with the two months notice for both parties.

I queried this today stating 'I've been looking through the AST you sent and am confused as to why it is a brand new contract on a par with the original signed in January last year rather than rolling into a Statutory Periodic Tenancy as stipulated within those agreed terms?

Under the original/current contract those terms are still binding and would continue rolling on up until the end of a term of 3 years, following which, a different contract would be required if needed.

Looking forward to clarification before proceeding.'

The EA responded : 

'Many thanks for this. I am referring to the following clause on page 1 which states that rolling onto a periodic tenancy is one of the options, however it is not the only potential outcome and in this case the landlord's preferred option is to enter into another fixed term which has a mutual 2 month break clause from the start. The reason for this is that the landlord would prefer not to be at risk of only one month's notice but still wants to be able to give you flexibility as requested, hence the fact the notice can be used from the start:

Where the tenancy becomes a periodic tenancy at the end of the fixed term period the tenant is required to give at least 28 days' notice (or one month in the case of a monthly tenancy) in writing to end the tenancy.  The tenant's notice must end on the first or last day of a period of the tenancy in accordance with the common law rules. The landlord is required to give at least two months' notice in accordance with the statutory rules prescribed by Section 21 of the Housing Act 1988 but the landlord's notice does not need to expire on the first or last day of a period of a tenancy. '

I am concerned that with the two month's notice required from me now that I will have less flexibility should I wish to move as many LL's want quick movers. 

At this point in time, and with all current circumstances staying the same, I do not intend to move in the 12 months but I am now feeling pressured to accommodate the LL's wishes which are overriding mine that are protected under the current and rolling AST.

Hope you can help.

Thank you 

anselld

You don’t need a new contract.  Just tell them you don’t want to renew and that you will continue the existing contract.

saajan_12

Remember the agent is the LL's representative, they don't have to give you good advice. So when they say "many things could happen, the LL's preference is xyz", remember that those things could only happen if you agreed, which you don't have to do. It may also not be the LL's preference but the agent's agenda to get more fees from the LL.. thought that's not your problem. 

Check what your original contract says about what happens after the end of the tenancy if the break clause isn't triggered. If it says nothing or if it says 1 month notice, then either way its 1 month notice. You can sign nothing further and it'll become the rolling tenancy as you currently have a right to. Whats the worst they'll do.. evict you and cause the void that they're desperately trying to avoid? Decline the rent increase that you were otherwise agreeing to provided the notice terms stayed the same? 

chanz4

just say want to continue on a rolling contract

ChirpyChicken

Don't say you want to
Just say
Thank you for this. However please like take this email as confirmation that I won't be signing a new contract I will move onto a periodic tenancy.
Regards
Xxxx

Grumpy_chap

I am a LL and offer existing tenant's a new AST after the original period expires.  I always think that gives the T the indication of intent that they can consider the property "home" with a bit more certainty.

Some T's take that option.

Some T's decide they prefer to go to SPT.

Either option is fine.

You can simply state that you wish to remain on the current contract and go SPT once the original AST term expires.

Mr.Generous

Everyone has given good advice, do what you want to do. If the worst happens the new renters rights bill will probably be in force from October / November (best guess) and will replace all existing contracts anyway.

SuperCurious

Thanks Everyone, you've been super helpful which I'm sincerely appreciative about.

I've now more confidence to go ahead to email the EA tomorrow with your advices.

Thanks once again.

As a first time poster/contributor, I'm grateful to be here and in receipt of all this wisdom

theartfullodger

anselld said:

You don’t need a new contract.  Just tell them you don’t want to renew and that you will continue the existing contract.

Almost certainly the agent wants a new contract so they can charge the landlord their fee.

You don't even need to tell them anything - tenancy simply rolls on, month by month, if nothing is done. Agent and landlord cannot stop that - other than court action, probably 6 months, unnecessary costs, loads of faffing about.  As far as I know agent cannot charge landlord for this happening..

btw I am a landlord for my sins (many & varied..)

Best wishes and good luck...

ChirpyChicken

theartfullodger said:

anselld said:

You don’t need a new contract.  Just tell them you don’t want to renew and that you will continue the existing contract.

Almost certainly the agent wants a new contract so they can charge the landlord their fee.

You don't even need to tell them anything - tenancy simply rolls on, month by month, if nothing is done. Agent and landlord cannot stop that - other than court action, probably 6 months, unnecessary costs, loads of faffing about.  As far as I know agent cannot charge landlord for this happening..

btw I am a landlord for my sins (many & varied..)

Best wishes and good luck...

my thoughts also

FlorayG

HI OP none of this will be relevant once the new renter's Rights bill becomes law sometime this year.
All in place AST will immediately become rolling tenancies
Both LL and tenant will be required to give two month's notice
So sign it or not, if you're not planning to move soon anyway it won't make any difference
Personally I would just contact the agent and say " no thanks, I don't want to sign another AST"