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What To Do If The Tenancy Is To Continue

5.2 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 – usually by serving a Notice Requiring Possession.

A fixed term assured tenancy (i.e. non-shorthold) will continue after its
expiry date, and the landlord can only bring it to an end on certain grounds.
Most tenancies in the private rented sector 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 he wants the tenancy to
continue:

• to agree a replacement fixed term shorthold tenancy with the
tenant;

• to agree to a replacement assured shorthold tenancy on a
periodic basis called a contractual periodic tenancy;

• do nothing and allow the assured shorthold tenancy to run on
with the same terms, under a statutory periodic tenancy.

5.2.1 Agreeing a Replacement Fixed Term AST

This is not something that the landlord has to do but a replacement fixed
term tenancy is advantageous for landlords who want to know that the
tenant’s obligations are going to 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.

5.2.2 Agreeing a Contractual Periodic AST

This is also not compulsory but it can be a good option for landlords who
need to be flexible about when they can have their property back. Landlord
and tenant can agree that the tenancy agreement will terminate by either
of them giving notice. Take advice about the tenancy agreement and the
legal requirements of a any notice, if there are any doubts about this. Again,
check whether the chosen tenancy deposit protection scheme requires re-
registration of the deposit.

5.2.3 Statutory Periodic Tenancy

If the landlord does nothing and the tenant stays on in the property, the
tenancy will automatically run on from one rent period to the next on the
same terms as the preceding fixed term assured shorthold tenancy. This
is called a statutory periodic tenancy. The tenancy will continue to run
on this basis until a new fixed term, or periodic tenancy, is agreed or 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 at any time. The period of notice is linked to
the period for which rent was last payable under the tenancy. Take advice if
there are doubts about which notice to serve.