Options at the end of the fixed term
When the fixed term of an assured or assured shorthold tenancy ends the landlord does not have an automatic right to regain possession of the property.
Some landlords think that if tenants stay on after the end of the fixed term they are unauthorised ‘squatters’. This is not the case. They are still tenants and are legally entitled to be there.
When the fixed term comes to an end the landlord and tenant have three options. They can either:
When the fixed term of an assured or assured shorthold tenancy ends the landlord does not have an automatic right to regain possession of the property.
Some landlords think that if tenants stay on after the end of the fixed term they are unauthorised ‘squatters’. This is not the case. They are still tenants and are legally entitled to be there.
When the fixed term comes to an end the landlord and tenant have three options. They can either:
i. agree a replacement fixed term tenancy (but note that during the new fixed term the landlord will not be able to regain possession except if one of the grounds for possession under the Housing Act 1988 is satisfied)
ii. do nothing and allow the tenancy to run on with the same rent and terms, under a statutory periodic tenancy
iii. give notice (in the case of the tenant) or serve notice and start proceedings for possession (in the case of the landlord)
Note – the tenancy agreement may specify the period of notice that the tenant has to give, however this will not preclude the tenant from leaving at the end of the last day of the fixed term without giving notice to the landlord. If your agreement does give a notice period but the tenant does not comply with this Notice Period, we would not advise relying on this alone in court.
If the original tenancy was an assured tenancy any replacement tenancy will automatically be on assured terms. To avoid any misunderstanding with the tenant, it is helpful to state in the replacement tenancy agreement that the tenancy is not a shorthold tenancy (make sure before doing this however that it really is an assured tenancy otherwise by adding this notice you will be creating one).
If the original tenancy was an assured shorthold tenancy the replacement tenancy will automatically be an assured shorthold tenancy unless, for some reason, the landlord agrees to grant an assured tenancy.
If the landlord and tenant do nothing, the tenancy will automatically run on as in a periodic tenancy basis, from one rent period to the next. This will be on the same terms as the preceding fixed term tenancy.
Note that because they have security of tenure, if an assured tenant refuses to sign a new tenancy agreement, realistically there is nothing you can do to force them to sign. The tenancy will run on as a periodic tenancy.
If an assured shorthold tenant does not agree to the landlord’s request for a new tenancy agreement the landlord can serve a section 21 notice (which must be at least two months notice) and start possession proceedings if he wishes.