Assured Shorthold Tenancy - notice of termination

[mulberryjuice]

My Assured Shorthold Tenancy agreement states:

 

"The Tenant Agrees that if this AST agreement is not renewed at end of six months term it shall continue on the basis of a statutory periodic tenancy upon the same terms except that the rent shall be increased in line with inflation until either two months notice of termination is served by the Landlord or one month notice is served in writing by the Tenant".

 

My original contract expired in March, so I am guessing it now continues as a statutory periodic tenancy. My landlord contacted us back in spring regarding the rent increase, but after negotiation, he agreed not to increase the rent.

 

Now, the landlord wants me to move out. I insist that, according to the contract, he needs to give me two months notice. But he says it is only one month and if I want a two-month notice I will need to pay him extra rent for the last previous months (as if the term of notice was based on rent increase). Can he do that?

[MARTIN3030]

Welcome to the site. With Assured Tenancies and Assured Shorthold Tenancies the tenant and landlord are required to agree on the rent at the start of the tenancy.

With an Assured Tenancy the rent must remain at the agreed rate until the end of the fixed term, unless the landlord and tenant agree to change it or rent changes are stated in the agreement.

At the end of the fixed term of an Assured Tenancy the rent can be increased, provided:

 

• The tenancy agreement has guidelines for rent increases
  
• The landlord gives written notice of the intended increase
  
• The landlord gives written notice of a change to the terms of the tenancy
  

The landlord is required to give the tenant notice of at least one rental period, which is usually one month, before increasing the rent. If the tenant challenges the increase in rent this will not threaten their ability to remain in the property, unless the landlord has other grounds on which they may evict the tenant.

With an Assured Shorthold Tenancy, the landlord may choose to increase the rent when the agreement is renewed after the initial period. If the tenant does not agree to the rent increase, the landlord may choose to evict the tenant rather than forego the required rent increase. If the tenant wishes to remain in the property, it is often the case that they agree to the rent increase.

Both Assured Tenancies and Assured Shorthold Tenancies enable the tenant to refer excessively high rents to the Rent Assessment Committee during the first six months of the tenancy. The Rent Assessment Committee is independent of both local and central government and usually consists of three people: a lawyer, a property valuer and a lay person.

The aim of the committee is to decide on a reasonable market rent for the property being let. The rent charged for similar properties in the area let on Assured Tenancies and Assured Shorthold Tenancies will be analysed to enable the committee to reach a decision. The market rent set by the committee will then be the highest legal rate the landlord can charge.

There are six rent assessment panels in England and Wales. No fees are charged for asking the committee to set a market rent for a property.

Edited August 14, 2010 by MARTIN3030
Typo

[mulberryjuice]

Well, that does not exactly answer my question. The rent increase is not a factor here, since there was not any - after our fixed term agreement became a statutory periodic tenancy the landlord agreed not to increase the rent for another 12 months.

Now, because he has moved abroad, he wants to give the flat to an agency to manage, and he wants us to leave. He insists that he has a right to give us one month notice. But the above clause from our agreement says it should be a two-month notice, am I right? Also I googled the Housing Act and I am thinking it qualifies under section 21 notice to quit, which has to be served two months before the leaving date? I just need somebody to confirm if I am reasoning correctly.

[callumsgran]

Yes you are right, he does have to give you two months notice by law

He's taking the proverbial mate

[MrShed]

Its quite simple. A monthly AST, whether stat or periodic, or contractual, needs to have a full 2 months notice given to terminate it by the landlord, to end at the end of a rental period.

 

CG above is dead right.

[callumsgran]

Nice to see you again Sheddy

[MrShed]

Cheers CG, and you

 

Keep getting too busy for the site (for months on end) and it always draws me back

[callumsgran]

I know what you mean lol, i'm the same!

How are you getting on with this upgrade?, not keen myself but never mind

[Readalot]

If your goal is to stay in the flat as long as possible, do the following:

 

Do not argue with the L about notice period and do not give him any legal advise. Once L issues section 21 notice, show it to someone qualified together with your lease. Tenant Relations Officer (TRO) of your local concil would be a perfect person to run it by, they are usually very helpful and knowlegeable. If the notice is invalid, which is very likely, ignore it. Should L start possession action inform the court that no valid section 21 notice was issued and request the hearing, TRO's and Shelter will help you with that.

 

For section 21 notice to be valid it must at least have date of expiry exactly on the last day of your fixed term or monthly anniversary of it which is two month or more from the date of service of the notice.

 

Assuming AST with private landlord and monthly payments without rent arrears of more than 8 weeks, invalid section 21 notice if you play it right means that you probably can stay in your house for another 4-5 month (depends on how quickly L learns how to issue correct section 21 notice).

 

Basically, if L wants you out you will have to move out eventually, but if L does not do what needs to be done by law to the letter your move may be postponed for quite some time.

[Planner]

For section 21 notice to be valid it must at least have date of expiry exactly on the last day of your fixed term or monthly anniversary of it which is two month or more from the date of service of the notice.

 

Not quite right, a s.21 b notice must expire after the end of the fixed term (any point after the end) but not on the last day of the fixed term, otherwise it will be invalid.

[Readalot]

Not quite right, a s.21 b notice must expire after the end of the fixed term (any point after the end) but not on the last day of the fixed term, otherwise it will be invalid.

 

It would be great if you are correct and I am wrong. I'll double check it. Thanks.