Tenancy Agreement Renewal Explained – What Tenants Should Know

Do I Have to Sign a New Tenancy Agreement? A Guide for Tenants

When your current tenancy agreement is coming to an end, you may wonder whether you're required to sign a new tenancy agreement with your landlord. The answer depends on several factors, including the type of tenancy you have and the terms of your existing agreement.

In this guide, we'll cover the key points to consider, including when a new tenancy agreement is necessary, what happens if you don’t sign a new one, and how Fraser Bond can assist with tenancy advice and support.

Types of Tenancies and Renewals

Before deciding whether you need to sign a new tenancy agreement, it’s important to understand the different types of tenancies and what happens at the end of each type:

1. Fixed-Term Tenancy:

   • A fixed-term tenancy agreement has a specified duration, typically 6 months or 12 months.
   • At the end of the fixed term, your landlord might ask you to sign a new tenancy agreement, especially if they want to update the terms or extend the tenancy for another fixed period.
   • If neither party signs a new agreement, the tenancy can continue on a rolling basis (also known as a periodic tenancy), where the tenancy renews automatically on a month-by-month or week-by-week basis depending on how often rent is paid.

2. Periodic Tenancy:

   • If your tenancy automatically rolls over after the fixed term expires, it becomes a statutory periodic tenancy. In this case, you do not have to sign a new tenancy agreement unless both you and your landlord wish to formalize a new fixed-term contract.
   • A periodic tenancy gives both tenants and landlords greater flexibility, as it can typically be terminated with a notice period (usually one month's notice from the tenant and two months' notice from the landlord).

3. Assured Shorthold Tenancy (AST):

   • Most tenancies in England and Wales are Assured Shorthold Tenancies (ASTs), which are usually fixed-term. At the end of the term, the same options apply: either sign a new tenancy agreement or allow the tenancy to continue as a periodic tenancy.
   • You are not legally required to sign a new agreement if you and your landlord are happy with the existing terms continuing under a periodic tenancy.

What Happens if You Don’t Sign a New Tenancy Agreement?

If your fixed-term tenancy expires and you don’t sign a new agreement, a few things can happen depending on your landlord’s preferences and the law:

1. The Tenancy Becomes Periodic:

   • If neither party signs a new agreement, the tenancy automatically becomes periodic, and you can remain in the property under the same terms as the original contract. You’ll continue paying rent, and the same rights and responsibilities apply, but you’ll have more flexibility in terms of notice periods.

2. Request for a New Fixed-Term Agreement:

   • Your landlord may prefer to have a new fixed-term tenancy agreement in place for security and stability. In this case, they may request that you sign a new contract with updated terms. If you refuse, the landlord may serve notice to end the tenancy if they are looking for a tenant who is willing to commit to a fixed term.

3. Negotiation of New Terms:

   • Sometimes, landlords use the end of a fixed-term tenancy as an opportunity to adjust terms, such as increasing rent. If you are asked to sign a new agreement, you can negotiate any changes before agreeing to sign.

Do You Have to Sign a New Agreement?

Legally, you are not required to sign a new tenancy agreement unless both you and your landlord agree to it. If you’re comfortable with a periodic tenancy, you can continue renting on a rolling basis. However, if the landlord insists on a new agreement or changes the terms, you can negotiate or consider whether you wish to remain in the property under the new terms.

It’s important to weigh the pros and cons of signing a new fixed-term agreement:

• Pros of Signing a New Agreement:

  • Security of tenure for a fixed period, ensuring the landlord can’t easily ask you to leave.
  • Protection from sudden rent increases during the fixed term.
  • Clear, updated terms for the tenancy, providing clarity on both sides.

• Cons of Signing a New Agreement:

  • Less flexibility, as you’ll be committed to the property for the new term unless you negotiate a break clause.
  • Potentially higher rent if the new agreement includes an increase.
  • The inconvenience of legal or paperwork requirements.

What to Check Before Signing a New Tenancy Agreement

If you decide to sign a new agreement, make sure you review the terms carefully:

1. Rent and Other Costs: Ensure the rent is what you agreed upon and look for any changes in service charges or utility costs.
2. Tenancy Term: Verify the length of the new agreement, and if needed, negotiate for a break clause to give yourself flexibility if you want to leave early.
3. Deposit Arrangements: If you paid a deposit at the start of your tenancy, ensure it remains protected in a government-approved tenancy deposit scheme.
4. Repairs and Maintenance: Confirm who is responsible for repairs and what the process is for reporting and resolving issues.
5. Notice Periods: Check the notice periods required by both parties, ensuring they align with your preferences.

How Fraser Bond Can Help

If you’re unsure about whether to sign a new tenancy agreement or would like help reviewing your current contract, Fraser Bond can provide expert advice and support. Our team is experienced in tenancy agreements, renewals, and landlord-tenant negotiations, ensuring you make the right decision based on your circumstances.

• Contract Review: We can review the terms of your new tenancy agreement and advise you on any legal changes or clauses that could affect your rights as a tenant.
• Negotiation Support: If your landlord proposes new terms or rent increases, we can assist in negotiating fair conditions that benefit both parties.
• Legal Guidance: Fraser Bond provides expert legal advice for tenants, helping you navigate complex situations like deposit disputes, repairs, or notice periods.

Conclusion

You are not required to sign a new tenancy agreement if your current contract expires, and in most cases, your tenancy can continue on a rolling basis. However, signing a new agreement can provide more stability and clarity, depending on your situation. Before making any decisions, carefully consider the terms and how they align with your needs.

Fraser Bond is here to assist you with expert advice and services for tenancy agreements, renewals, and any landlord-tenant negotiations. Contact us today to learn more about how we can help you manage your tenancy with confidence.