Assured Shorthold Tenancy Agreement Holding Over: What You Need to Know
When a tenancy agreement comes to an end, it is common for the tenant to hold over and continue to occupy the property. This is known as a holding over and can occur for various reasons, such as the landlord and tenant agreeing to extend the tenancy, or the tenant simply refusing to vacate the property.
In the case of an assured shorthold tenancy agreement (AST), holding over can have significant implications for both landlords and tenants. In this article, we’ll explore what holding over means for an AST, and what steps landlords and tenants can take to protect their rights.
What is an Assured Shorthold Tenancy Agreement?
An AST is the most common form of tenancy agreement used in the private rented sector in England and Wales. It offers tenants the right to live in a property for a fixed period of time, usually six or twelve months, in exchange for paying rent to the landlord.
Under an AST, the landlord has the right to regain possession of the property at the end of the fixed term, provided they have given the tenant appropriate notice. This means that if the tenant does not vacate the property by the end of the fixed term, they become a ‘holding over’ tenant.
What Happens When an AST is Held Over?
When an AST is held over, the tenant retains their occupancy rights, but the tenancy becomes a periodic tenancy. This means that the tenant continues to pay rent on a regular basis, usually monthly, but there is no fixed end date to the tenancy.
For landlords, the biggest implication of holding over is that they are unable to regain possession of the property without serving notice to the tenant. They must give the tenant a minimum of two months’ written notice under Section 21 of the Housing Act 1988, or a minimum of four weeks’ notice under Section 8 if they wish to regain possession for breach of tenancy.
What Can Landlords Do to Protect Their Rights?
To protect their rights, landlords should always ensure that they have a valid written tenancy agreement in place. This should clearly state the length of the fixed term, and any conditions for extension or renewal of the tenancy.
If a tenant wishes to hold over after the fixed term has ended, landlords should seek legal advice and consider issuing a new tenancy agreement. This will help to protect their rights, as it will clearly state the terms of the new tenancy, including the length of the term and any rent increases.
What Can Tenants Do to Protect Their Rights?
If a tenant wishes to hold over after the fixed term has ended, they should ensure that they have the landlord’s agreement to do so. While landlords have the right to refuse a request to hold over, they may be willing to agree to a new tenancy on different terms.
Tenants should also be aware that if they hold over without the landlord’s agreement, they may be liable for double rent under Section 18 of the Housing Act 1988. This means that they could be required to pay rent for the period in which they held over, as well as the period of the new tenancy.
In Conclusion
Assured shorthold tenancy agreement holding over can be a complex issue, with significant implications for both landlords and tenants. By ensuring that they have a valid written tenancy agreement in place, and seeking legal advice where necessary, both parties can protect their rights and avoid potential disputes down the line.