In the UK, a landlord can refuse to agree to a rolling contract, but it largely depends on the terms of the existing tenancy agreement and the landlord’s intentions for the property.
A rolling contract, also known as a periodic tenancy, occurs when a fixed-term tenancy (usually 6 or 12 months) comes to an end, and neither the landlord nor the tenant actively renews it with a new fixed-term agreement. Instead, the tenancy rolls on a periodic basis, typically monthly, under the same terms as the original contract.
Yes, a landlord can refuse to offer or allow a tenancy to move onto a rolling contract after the fixed term expires. Here's how:
Offering a New Fixed-Term Contract: The landlord may prefer a new fixed-term tenancy over a rolling contract to secure longer-term commitment from the tenant. They can propose a new fixed-term agreement before the current tenancy ends. If the tenant refuses to sign the new agreement, the landlord has the right to issue notice to end the tenancy.
Issuing a Section 21 Notice: In England, if the landlord does not want the tenancy to become periodic, they can issue a Section 21 notice (sometimes referred to as a "no-fault" eviction notice) during or after the fixed term. This gives the tenant at least two months' notice to vacate the property. However, the landlord must follow the legal requirements for issuing the notice, such as ensuring the tenant has been given required documents like the Energy Performance Certificate (EPC) and a copy of the “How to Rent” guide.
Ending the Tenancy at the End of the Fixed Term: If the landlord does not wish to allow the tenancy to roll on, they can inform the tenant that the tenancy will end when the fixed term expires. In this case, they need to provide proper notice under the terms of the tenancy agreement (often two months' notice before the end of the fixed term). If the tenant does not leave, the landlord can begin possession proceedings.
Security of Income: A fixed-term tenancy ensures that the landlord has a guaranteed income for a set period, reducing the uncertainty of a periodic tenancy where the tenant can leave with shorter notice (usually one month's notice).
Desire to Sell or Reuse the Property: The landlord may plan to sell the property, refurbish it, or use it for personal purposes and therefore may not want the tenancy to continue indefinitely.
Higher Rent: A landlord may refuse a rolling contract if they wish to renegotiate the rent. While rent increases are still possible during periodic tenancies, they often require formal processes. A new fixed-term tenancy may offer an easier opportunity to negotiate a rent increase.
Tenants have the right to request a rolling contract if they prefer more flexibility. However, they cannot force the landlord to agree to this arrangement if the landlord insists on a new fixed-term contract or decides to end the tenancy.
Landlords are not legally obligated to agree to a rolling contract, and they can opt to offer a new fixed-term agreement or end the tenancy. Tenants who prefer a rolling contract should communicate their preferences with the landlord ahead of time and be prepared for potential negotiations or even the end of the tenancy if the landlord chooses not to extend it on the same terms.
Fraser Bond can offer guidance on tenancy agreements, legal requirements, and landlord-tenant negotiations, ensuring that both parties understand their rights and responsibilities.
