statutory periodic tenancy
📖 What is statutory periodic tenancy? Meaning and definition
When a fixed-term assured shorthold tenancy, such as one for 12 months, comes to an end, and the tenant remains in occupation, the tenancy can automatically convert into a statutory periodic tenancy. This means the tenancy continues on a periodic basis, for example, month-to-month, rather than for another fixed term. The terms of the original tenancy generally carry over, but certain aspects, like rent, can be reviewed.
One significant implication of a tenancy becoming statutory periodic is how rent increases are handled. For instance, if a tenancy is statutory periodic, the landlord may have the right to propose a new rent from a specific date, often six months after the tenancy became periodic. This differs from a contractual fixed-term tenancy where the rent is typically fixed for the entire term.
The Tribunal, such as the First-tier Tribunal, has jurisdiction to determine a new rent for a statutory periodic tenancy if a landlord's notice proposing a rent increase is referred to them. The Tribunal will consider what the dwelling-house might reasonably be expected to be let for in the open market under an assured tenancy with the same periodic terms. The law, including Section 14(1) of the Housing Act 1988, guides this process.
Furthermore, a statutory periodic tenancy is subject to certain legal obligations, such as the landlord's statutory repairing obligations under section 11 of the Landlord and Tenant Act 1985, provided the tenancy is not for a fixed term of seven years or more. The tenant typically remains responsible for internal decorations.
📋 Requirements
- An original assured shorthold tenancy must have existed for a fixed term.
- The fixed term of the original tenancy must have expired.
- The tenant must continue to occupy the property after the fixed term ends.
- No new contractual fixed-term tenancy agreement must have been entered into.
📝 Procedure
- The fixed-term assured shorthold tenancy expires.
- The tenancy automatically becomes a statutory periodic tenancy.
- The landlord may propose a new rent by serving a notice.
- If the tenant disputes the proposed rent, they can refer the notice to the appropriate Tribunal.
- The Tribunal determines the new rent based on the open market value for a periodic tenancy.
💡 Examples
- A tenant's 12-month assured shorthold tenancy ended on 14 April 2022, and they continued living in the property, resulting in a statutory periodic tenancy.
- A landlord proposed a new rent for a property under a statutory periodic tenancy, and the tenant referred the notice to the Tribunal for determination.
- The Tribunal determined a new rent for a statutory periodic tenancy, noting that the application was received before the date specified in the landlord's rent increase notice.
- A property was occupied under a statutory periodic tenancy, meaning the landlord's repairing obligations under the Landlord and Tenant Act 1985 applied.
📚 Legal basis
- Housing Act 1988
- Regulatory Reform (Assured Periodic Tenancies) (Rent Increases) Order 2003
- Landlord and Tenant Act 1985
- Rent Act 1977
❓ Frequently asked questions
What happens when my fixed-term tenancy ends?
If your fixed-term assured shorthold tenancy ends and you continue to live in the property without signing a new fixed-term agreement, it typically becomes a statutory periodic tenancy.
Can my landlord increase the rent if I have a statutory periodic tenancy?
Yes, if your tenancy is statutory periodic, your landlord generally has the right to propose a new rent, often from a specific date after the periodic tenancy began, by serving a notice.
What if I disagree with a proposed rent increase on a statutory periodic tenancy?
If you disagree with a rent increase proposed by your landlord for a statutory periodic tenancy, you can refer the landlord's notice to the appropriate Tribunal, which will then determine a fair market rent.
Are my landlord's responsibilities different under a statutory periodic tenancy?
Under a statutory periodic tenancy, your landlord still has statutory repairing obligations, such as those outlined in the Landlord and Tenant Act 1985, unless it's a very long fixed-term tenancy.
How does a statutory periodic tenancy differ from a contractual tenancy?
A statutory periodic tenancy automatically arises after a fixed term ends, continuing on a periodic basis, whereas a contractual tenancy is a new agreement for a specific fixed term with a fixed rent for that period.
Does the Tribunal always inspect the property when determining a new rent?
No, the Tribunal may determine a new rent based on the submissions of the parties without inspecting the property, as seen in some cases.