I come across this view sometimes. Landlords telling me that their tenant has no right to stay on in their property because they (the landlords) only agreed to let them live there for (say) six months.
In fact, in most cases, tenants are automatically granted a new tenancy, if they stay on after the end of their fixed term.
Unfair to landlords?
I can understand why landlords feel that the law favours tenants more than them. Tenants can leave without penalty at the end of a fixed term, and don’t even have to give the landlord any warning that they are leaving (although it is a different matter if they stay on).
However, if the tenant does not want to move out, the landlord must serve a two months notice (six months now in Wales), get a court order for possession and then instruct the County Court bailiffs before he can get his property back.
However, the reason for this is to protect tenants as, after all, this is their home.
How it works
With assured and assured shorthold tenancies (i.e. most of those which started after 15 January 1989) the Housing Act 1988 specifically provides that if tenants stay on after the end of their fixed term, the law will create a new tenancy, a ‘statutory tenancy’ (because it is created by statue). This is also the case with ‘occupation contracts’ in Wales.
This new tenancy will be a ‘periodic’ tenancy’, starting immediately after their fixed term ends, and will run on from month to month or from week to week, the ‘period’ depending on how their rent is paid. Apart from this, in England, all the terms and conditions of the preceding ‘fixed term’ tenancy will continue to apply.
In Wales, landlords may find that some of the terms and conditions in the new periodic contract have changed as discussed here. Unless the terms of the potential statutory periodic contract are included in their fixed-term contract. And also, unless they have done this, landlords will need to serve a new contract. But otherwise, the rules providing for a statutory periodic contracts are very similar.
And finally
So when landlords (and tenants) say that tenants staying on ‘do not have a tenancy’ this is not true.
They do. And so they are not squatters!
However, the reason for this is to protect tenants as, after all, this is their home. Exactly.
Does the notice period for terminating the tenancy change on the tenant’s side once the tenancy becomes periodic? For example, if the original 12 month AST contract stated that rent was paid monthly, but tenants could provide two month’s notice to quit after 6 months, does the statutory tenancy inherit that two month notice period?
It may be different. Tenants can only give notice to end a fixed term if the tenancy agreement provides for this and so if he gives permission for this the landlord can specify the notice period.
However, notice periods for statutory periodic contracts are normally governed by the period rent is paid. So as most rent is paid monthly, most tenants will have to give a months notice. If the landlord tries to change this to make it longer in the terms and conditions this will normally be considered an unfair term.