Speak to anyone in the private rental sector and they’ll agree on one thing – a tenancy agreement is an absolute must. The Government gives landlords and letting agents free access to its model agreement for a shorthold assured tenancy, although its contents can be amended to suit each individual tenancy.
Changes are afoot, however. Labour’s Renters’ Rights Bill means the scribes at the department for housing and communities will soon be redrafting the model agreement to accommodate some radical reforms.
Shorthold assured removed
The first change will see the title of the model agreement changing, with the words ‘shorthold assured’ consigned to history. This is because the Government is scrapping shorthold assured tenancies in favour of periodic ones, with landlords no longer able to stipulate fixed terms. Landlord Buyer last reported on period tenancies in 2023 but since the change in Government, the details of this reform have altered. What haven’t changed are the specific difficulties surrounding periodic tenancies, details of which you can read here.
A hugely important aspect for landlords to note is the periodic tenancies changes will legally apply to existing tenancy agreements that are described as assured shorthold, with the term ‘periodic tenancy’ superseding ‘assured shorthold’ without agreements being redrafted and resigned.
In layman’s terms, this means all assured shorthold tenancies in existence will automatically turn into periodic tenancies, despite what the agreement says. The right to create assured tenancies is also being removed from the Housing Act 1988, so all new tenancies will be periodic too. As such, tenancy agreements of the future will not need to include a tenancy duration as the periodic model works on a rolling basis, until either party gives notice.
Revised notice periods
On that last note, notice periods are changing too. New tenancy agreements will detail how a tenant only has to give two months’ notice if they want to quit, and that they have the right to give notice from day one of their periodic tenancy.
For landlords, a revised tenancy agreement will reflect their new notice period should they be using Section 8’s mandatory possession grounds 1 or 1A (if the landlord wants to sell the property, move in themselves or move a family member in). These grounds will only apply after 12 months of the tenancy have been served. Once 12 months have elapsed, a landlord using ground 1 or 1A must give the tenant four months’ notice before beginning court proceedings. Other grounds within a Section 8 notice will have their own notice period, according to the reason for eviction.
Omission of Section 21
Perhaps the biggest omission from future tenancy agreements will be the exclusion of the term Section 21. The ban on so-called ‘no fault’ evictions will completely eradicate the need for this notice. Instead, all possession and eviction clauses will pertain to a Section 8.
New right to keep pets clause
A clause that puts a blanket ban on pets will no longer be permitted in tenancy agreements. While it has been possible for landlords to stipulate that no domestic animals are to be kept in the property, the Renters’ Rights Bill will require ‘landlords not to unreasonably withhold consent when a tenant requests to have a pet in their home’ and any clauses will need to reflect this.
It will be permissible, however, for a tenancy agreement to outline if a superior landlord, such as a freeholder, has a no-pet policy. Landlords can also refuse a request to keep a domestic animal if they think their reason would stand up in court should the tenant accuse the landlord of discrimination.
It is still important for future tenancy agreements to include:
- The full name of the tenant(s) and the landlord (s)
- Address and contact details for everyone living at the property aged 18 or over
- The start date of the tenancy
- How much the monthly rent is, how it should be paid and by when
- Details on subletting
- Details on the deposit protection service used
- Who is responsible for interior maintenance and repairs, with expectations outlined
- Who is responsible for exterior maintenance and repairs, with expectations outlined
- Who is responsible for garden maintenance and repairs, with expectations outlined
- Decoration and personalisation restrictions
- Utilities and services, including whether the let is on a ‘bills included’ basis
- Details of whether smoking/vaping inside or outside the property is permitted
- Usage of the property and any restrictions imposed by a superior landlord
- Nuisance or anti-social behaviour
- Vacant periods
- Furniture provision
- Clauses about drying laundry, ventilation and lifestyle-related behaviour to prevent mould
- Space for the landlord, the tenant and the letting agent (if involved) to sign and date the document
If you would like to discuss your current tenancy agreement and how it will change when the Renters’ Rights Bill becomes law, please get in contact.
We are already buying properties from landlords who feel mandatory periodic tenancies and the end of Section 21 notices will make buy-to-let unfeasible. Request a valuation and a cash offer now.
Selling a house with tenants is simple when selling to Landlord Buyer – even if there’s a short lease or a problem with the property. If you’d like to know more, contact us today.