Contractual Periodic Tenancy - Minimum Term?

[Brian_C]

Hi There,

 

I'm wondering if there really is such a thing as a Contractual Periodic Tenancy (CPT), (not to be mistaken with a Statutory Periodic Tenancy which comes into action after the minimum term of an Assured Shorthold Tenancy lapses) or if this really is an Assured Shorthold Tenancy (AST) under the Housing Act from 1988/1996?

 

Therefore, I wonder if a CPT does have a minimum term of 6 months (like the AST) or if it truly lasts for the initial term (i.e. 1 month) and renews for another term (1 month) as long as neither party serves a Notice to Leave?

 

I feel that the literature is adding to the confusion by stating that i.e. the AST can set a minimum term of any duration (3, 6, 12 etc months) when by law the minimum term really is 6 months.

 

The reason I'm asking for this is that I had various requests from students for short term accommodation shorter than 6 months. These people didn't want to sign a AST agreement because of the minimum term of 6 months - and I don't blame them as by law they may be liable for the whole 6 months rent.

 

This may sound a very stupid query but you would not believe how many differnet statements I heard over the last 2 weeks of my inquiries including the advice from the Citizen Advice Bureau. They are all contradicting each other.

 

Therefore, I would be very grateful for helpful comments on this.

 

**********************

MY CIRCUMSTANCES ARE:

- the tenancy is between a Private Landlord and a Tenant/Multiple Occupants

- the Landlord does not live in the rental premises

- the tenancy starts after 27/02/1997

- the premises is located in England/Wales.

[Zamzara]

There is no minimum fixed term for an AST and the fixed term can be of any length, or there can be no fixed term.

 

However for any AST, the landlord cannot use the S21 procedure for the first six months or during the fixed term, whichever is longer.

 

For when the tenant can leave, this depends only on the length of the fixed term.

[Brian_C]

Thanks for your reply Zamzara.

 

Does this mean that an AST for the duration of i.e. 3 months does 'end' after 3 months and becomes a Statutory Periodic Tenancy which THEN (after the original 3 months tenancy) can be cancelled with 1 month notice for the Tenant respectively 2 months notice for the Landlord?

 

And: would there be a difference between a fixed term AST (1 month length) and a Contractual Periodic Tenancy with monthly rental payments?

[MrShed]

You can have a 3 month tenancy, but cannot evict under S21 notice until 6 months. Therefore, after 3 months, the tenant CAN give 1 months notice, but the landlord CANNOT evict until 6 months.

[Brian_C]

OK, thanks. I think I got it:

A 3 months AST agreement is possible. However, if the Tenant decides to stay for longer (and is not in rent arrears) he's is free to do so and the Landlord cannot end the tenancy before month No.6.

 

Does the same principles apply to the Contractual Periodic Tenancy?

 

Cheers B

[MrShed]

Clarify for me what you believe the difference to be between the two?

 

I would believe that any attempt to shoehorn a tenancy into this CPT would fail, and it would be an AST in any event.

[Brian_C]

The CPT is always described as a 'rolling contract' with no fixed terms and therefore is solely determined by the period of rental payments.

 

So I wonder if the minimum term of 6 months applies here? If so there seems to be no significant difference between a fixed term 6 months AST and a CPT?

[MrShed]

You refer to the AST as if the AST is only the fixed term.

 

The AST is a description of the type of tenancy(Assured Shorthold Tenancy), and this description is the case during the fixed AND periodic portions.

 

Yes, the 6 months apply, no there are no real differences.

[Brian_C]

Thanks for the clear statement and I think I got the bigger picture.

 

I wouldn't have thought that even the Contractual and/or Statutory Periodic Tenancy still falls under the term 'AST'. But it makes sense.

 

Thanks again.