As a tenant of an Assured Shorthold Tenancy agreement, you may find yourself approaching the end of your initial six-month term. So, what happens next?
First and foremost, it is important to understand the basics of an Assured Shorthold Tenancy (AST) agreement. An AST is the most common type of tenancy agreement in England and Wales, particularly for private rented properties. It is a legally binding agreement between a landlord and a tenant, and sets out the terms and conditions of the tenancy.
One of the main features of an AST is the initial term, usually six months. This initial term provides a level of stability for both the landlord and the tenant, as it ensures that the tenant will not leave within the first six months, while also allowing the landlord to assess the tenant and their suitability as a long-term tenant.
Once the initial six months have passed, the tenancy agreement does not simply end. Instead, it will continue on a rolling basis, also known as a periodic tenancy. This means that the terms and conditions of the original agreement will continue to apply, but on a month-to-month basis, unless either the landlord or the tenant gives notice to end the tenancy.
It is important to note that during a periodic tenancy, the landlord still has the right to increase the rent, but only after giving the tenant the correct notice. For example, if the rent is paid monthly, the landlord must give at least one month’s notice of any rent increase.
Similarly, the tenant still has the same rights under the AST during a periodic tenancy, such as the right to have the property well-maintained and to a certain standard.
If, however, either the landlord or the tenant wishes to end the tenancy during the periodic tenancy, they must give notice to the other party. The notice period will depend on the terms of the original agreement, but typically will be one month.
It is also worth noting that if the landlord wishes to regain possession of the property, they can do so through a process called eviction. However, this would require a court order and can be a lengthy and costly process.
In summary, an Assured Shorthold Tenancy agreement does not simply end after the initial six-month term. Instead, it will continue on a rolling, month-to-month basis, unless either the landlord or the tenant gives notice to end the tenancy. This provides both parties with flexibility and stability, while also allowing the landlord to increase the rent if necessary and the tenant to have their rights protected.