What to Do if the Tenancy Is to Continue

A periodic tenancy will continue until either the landlord or the tenant brings it to an end. For tenants, this will usually be by serving notice to quit and for landlords, by serving an appropriate notice and (if the tenant does not leave) obtaining a court order.

A fixed-term assured tenancy (i.e. non-shorthold) will have a statutory periodic tenancy arise automatically after its expiry date. The landlord can only bring it to an end on specific grounds. Most private rented-sector tenancies start life as fixed-term assured shorthold tenancies. When the fixed term of an assured shorthold tenancy ends, the landlord has the following options if they want the tenancy to continue:

• to agree on a replacement fixed-term shorthold tenancy with the tenant
• to agree to a replacement assured shorthold tenancy periodically called a contractual periodic tenancy or
• to do nothing after the fixed term assured shorthold tenancy and allow a statutory periodic tenancy to arise on the same terms.

Agreeing to a Replacement

Agreeing to renewal is not something that the landlord has to do. Still, a replacement fixed-term assured shorthold tenancy is advantageous for landlords who want to know that the tenant’s obligations will continue for at least the duration of the replacement tenancy.

Check whether the tenancy deposit protection scheme being used requires re-registration of the deposit if the tenancy is renewed because the scheme requirements vary, and a further fee may be payable.

Agreeing to a Contractual Periodic AST

Agreeing to a contractual periodic tenancy is not compulsory either. Still, sometimes a tenancy agreement will contain a clause providing that the tenancy will not end at the end of the fixed term but will instead continue as a contractual periodic tenancy. Again, check whether the chosen tenancy deposit protection scheme requires re-registration of the deposit.

Where such a clause exists, the tenancy will be counted as a single tenancy ‘continuing’ from the original fixed term.

Statutory Periodic Tenancy

Suppose the landlord does nothing, there are no provisions in the tenancy for what happens at the end, and the tenant stays on in the property. In that case, a statutory periodic will arise automatically, running from one rent period to the next on the same terms as the preceding fixed-term assured shorthold tenancy. The tenancy will continue to run until a new fixed-term or periodic tenancy is agreed upon, the tenant leaves, or the court awards the landlord possession. The terms of the existing tenancy agreement remain in force; a notice to gain possession of the premises can be served. Take advice if there are doubts about which notice to do.

A statutory periodic tenancy is a new tenancy comparable to a written renewal.