Around the UK: What are the changes to Tenancy agreements?

Assured shorthold tenancies (ASTs) have been the default legal tenancy type and the most common form of rental agreement between landlords and tenants in England and Wales for the last 25 years. 

But that’s about to change:

• In Wales, new contracts are due to come into force on 1^st December under the Renting Homes (Wales) Act
• In England, although nothing has been confirmed yet, the Government’s recent White Paper on rental reform is proposing significant amendments to tenancy agreements

In both countries, the rules around evictions are changing significantly, with a big focus on giving tenants greater security of tenure.

So, what does the law currently say about tenancy lengths and evictions where the tenant hasn’t breached their agreement? 

• It is not a legal requirement to have a written tenancy agreement (although it is advised)
• Neither landlords nor tenants can break the AST during an initial fixed term (commonly 6 months) unless each party agrees
• Landlords can’t evict a tenant within the first 6 months (even if there’s no fixed term)
• Landlords can evict a tenant at the end of a fixed term without having to state a reason by serving a section 21 notice. They must give the tenant at least 2 months’ notice and the notice can be served at the end of month 4 (provided the fixed term ends after month 6)
• The tenant can give one month’s notice (or 4 weeks’ notice if rent is paid weekly) after any fixed term has ended

Changes in Wales from 1^st December 2022

• The AST will be replaced by an ‘occupation contract’ and ‘tenants’ will become ‘contract-holders’
• It will be mandatory for landlords to provide written contents
• Occupation contracts can either be for a fixed term of up to 7 years or periodic (week to week or month to month)
• Landlords must give contract holders at least 6 months’ notice, which can’t be issued within the first six months of the contract. That means landlords will have an initial minimum 12-month commitment.
• If the contract is periodic, the contract holder can give a minimum of 4 weeks’ notice at any time

For guidance and model forms, visit gov.wales and https://rentsmart.gov.wales/en/home/

Proposals for future tenancy agreements in England

• All tenancies will be periodic – i.e. there will be no more fixed terms or specified end dates
• Section 21 notices will be scrapped and landlords will only be able to evict a tenant “in reasonable circumstances”
• Tenants will be able to give two months’ notice to a landlord at any point during their tenancy

These proposals are still subject to change – particularly given that there will soon be a new Prime Minister - and are unlikely to come into force for some time.

…a similar type of rental reform happened back in December 2017, when the Private Residential Tenancy agreement came into effect. A key change was the removal of the ‘no reason’ eviction option for landlords.

• Tenancies are open-ended, with no fixed length or end date
• Landlords have to cite at least one of 18 specific grounds for eviction in a ‘notice to leave’ and give:
  
  - 28 days’ notice if the tenant has lived in the property for less than 6 months
  
  - 84 days’ notice if the tenant has lived in the property for more than 6 months
• Tenants can give 28 days’ notice in writing at any time

More information is available on the Scottish Government website.

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