Assured Shorthold Tenancy (AST) Agreements
The Renters Rights Bill, which is due to come into force shortly, represents a major reform of the private rented sector in England. It replaces the old system of Assured Shorthold Tenancies (ASTs) with a single, open-ended tenancy framework. This means that all new tenancies will become Assured Periodic Tenancies, providing tenants with more security and landlords with clearer possession grounds using Section 8 and updated mandatory grounds.
What's Changed?
Firstly all tenancies will be periodic from the outset. Fixed term tenancies will no longer be created; instead, tenancies will continue on a rolling monthly basis until either the tenant chooses to leave (giving 2 months notice), or the landlord seeks possession using a Section 8 Notice.
Section 21 'No fault' evictions will be abolished and landlords can only seek to recover possession using the amended grounds in Schedule 2 of the Housing Act 1988 which will include grounds to allow the landlord to move back into the property, sell the property, serious rent arrears or breaches of the tenancy.
Rent Reviews and Increases can only be undertaken annually and using the formal process under Section 13 of the Housing Act 1988, with tenants having the right to challenge excessive increases before the First-Tier Tribunal.
Deposit Protection rules remain unchanged and landlords must still protect the tenant's deposit in a government approved Tenancy Deposit Scheme within 30 days of receipt and provide the prescribed information.
Tenants continue to benefit from strong protections against unlawful evictions and harassment, as well as the right to live in safe, well-maintained and energy efficient homes .
The move from Assured Shorthold Tenancies (ASTs) to Assured Periodic Tenancies marks significant change. Simply-Docs are working on a new suite of Assured Periodic Tenancy Agreements drafted in compliance with the Renters Rights, ensuring landlords remain fully compliant with the new legal framework.
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