Changing Terms By Serving Notice
Notice can be served to allow terms to be changed in an assured shorthold tenancy:
1. Section 6 notice
2. Section 13 notice
3. Section 22 notice
Notice can be served to allow terms to be changed in an assured shorthold tenancy:
1. Section 6 notice
2. Section 13 notice
3. Section 22 notice
A section 6 Notice is a notice which can be served by either the landlord or tenant to vary the terms of the contract. It must be served no later than the first anniversary of the day on which the former fixed term tenancy ended. A Section 6 notice will not apply where the two parties have negotiated new terms and these have been included in a new fixed term tenancy. Thus a Section 6 notice can only be used when the tenancy moves on to a statutory periodic tenancy.
There are actually two types of Section 6 Notice:
Firstly, a Housing Act 1988 section 6(2) Notice. This is a notice proposing different terms for a statutory periodic tenancy. It can be referred to as FORM No 1.
Secondly, a Housing Act 1988 section 6(3) notice. This is an application referring a notice proposing different terms for a statutory periodic tenancy to a Rent Assessment Committee. It can be referred to as FORM No 2.
FORM No 2. must be served within 3 months of receipt of FORM No 1. If not the proposed changes will take effect.
2. Section 13 Notice
A landlord or an agent can serve this notice on a tenant in the prescribed form in order to propose a new rent under a periodic Housing Act 1988 tenancy. Interestingly enough it can be used to decrease as well as increase the rent. The period from which the notice will take effect is a minimum of one month or a period of the tenancy if longer. The notice must be in accordance with the terms of the tenancy and expire at the end of the relevant period. If unchallenged, the rent stated will become the lawfully due rent.
The prescribed form is a Housing Act 1988 section 13(2) Notice as prescribed in The Assured Tenancies and Agricultural Occupancies (Forms) (England) Regulations 2015. It is a Landlord’s Notice proposing a new rent under an Assured Periodic Tenancy of premises situated in England. It can be referred to as FORM No. 4. There is a different notice for Wales.
It is important to note that references to assured periodic tenancies also apply to periodic assured shorthold tenancies as well.
A tenant can refer the notice to a Rent Assessment Committee but they will only consider the matter if the increase is excessive. In practice, because a tenant can lawfully give one month’s notice and leave, most tenants when faced with an excessive rent review will “vote with their feet” by issuing a Notice to Quit which expires in a month.
3. Section 22 Notice
In the first 6 months of an AST a tenant has the right to refer the rent to a Rent Assessment Committee if there is strong evidence that the rent is far in excess of the market rent. Once again there is a prescribed form which must be used.
The prescribed form is an Application Form under Section 22(1) of the Housing Act 1988 (as amended by section 100 of the Housing Act 1996). It is an Application to a Rent Assessment Committee for determination of a rent under an Assured Shorthold Tenancy. This form is referred to as FORM RAC2.
The Rent Assessment Committee will review the rent and compare it with the realistically achievable market rent for similar properties in the area and make a determination which will be binding on both parties.