Do Landlords Need to Issue a New Assured Periodic Tenancy (APT) Under the Renters’ Rights Act?

There is no legal requirement under the Renters’ Rights Act for landlords to issue a new Assured Periodic Tenancy (APT). However, there can be important strategic advantages in doing so, depending on your circumstances as a landlord.

What Happens to Existing AST Agreements?

If your tenants originally signed an Assured Shorthold Tenancy (AST), key terms of that agreement will continue to apply even now the Renters’ Rights Act is in force.

One particularly important clause is the tenant’s right to end the tenancy by giving one month’s notice, in line with the rent payment date.

What Is the Advantage of Signing a New APT?

Under an Assured Periodic Tenancy (APT), the notice period for ending the tenancy changes.

Under a newly signed APT, tenants would generally be required to provide two months’ notice to end the tenancy instead of one month.

It is important to note that tenants are not legally obliged to sign a new tenancy agreement.

Using a New APT Instead of a Section 13 to Increase Rent

If the rent has not been increased within the last 12 months, landlords may also consider issuing a new APT at a higher rent level instead of serving a Section 13 notice.

Landlords should remember that tenants must receive at least two months’ notice of any rent increase. As a result, the new tenancy agreement must be signed at least two months in advance of the APT start date.

Potential Disadvantages for Landlords

Before issuing a new APT, landlords should also consider the potential drawbacks.

By entering into a new tenancy agreement, landlords would normally be unable to recover possession for 12 months using grounds related to:

Selling the property
Moving back into the property themselves

However, other statutory possession grounds may still remain available during this 12-month period.

If the landlord is not using the new APT to increase the rent, signing the agreement would prevent any further rent increase for the following 12 months.

Key Takeaways for Landlords

There is no obligation to issue a new APT under the Renters’ Rights Act.
Existing AST notice terms (for tenants only) continue to apply unless a new APT is signed.
A new APT can increase the tenant notice period from one month to two months.
Signing a new tenancy may temporarily restrict certain possession grounds for 12 months.
Once a new tenancy is signed, the rent cannot usually be increased again for 12 months.
A new APT may also provide an alternative route for increasing rent without using a Section 13 notice.