Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 1
1
Acknowledged
Paragraph: 22
The abolition of fixed-term tenancies, combined with the abolition of section 21, would undoubtedly give...
Conclusion
The abolition of fixed-term tenancies, combined with the abolition of section 21, would undoubtedly give tenants greater security of tenure. We understand the argument that fixed-term tenancies should remain available where both parties want them, but in practice, given the current shortage of private rental properties, this would likely result in tenants having fixed terms forced on them. A reasonable balance needs to be struck between security of tenure for tenants and a degree of certainty for landlords. We therefore recommend that tenants be unable to give two months’ notice to leave until they have been in a property for at least four months. This will give landlords the legal certainty of at least six months’ rent at the start of a tenancy.
Government Response Summary
The government states tenants will be able to give notice at any point during the tenancy to avoid replication of fixed terms, and has increased the notice period to two months to ensure landlords have sufficient guarantee of rent.
Paragraph Reference:
22
Government Response
Acknowledged
HM Government
Acknowledged
We are grateful for the Committee’s support for periodic tenancies and agree that many tenants do not have a genuine choice about whether to sign up for a fixed term or not. Under the new system, tenancies will have no fixed period or specified length, meaning tenants can feel secure that their home is theirs until they choose to leave, or the landlord has a valid reason for possession. All parties will better understand their rights and responsibilities with a single set of rules governing when parties can end tenancies. However, we know that some landlords have concerns about this approach and we will continue to work to understand their concerns and ways in which they could be mitigated. Flexibility is one of the key benefits of the PRS and we think it is critical that tenants can move when their circumstances change. For example, tenants may need to move for work, when the tenancy is no longer affordable or, in more extreme circumstances, to escape abuse or dangerous conditions. Our reforms will also protect tenants from the injustice of being forced to pay for unsafe or non-decent homes. It is expensive and inconvenient to move house – research from Shelter indicates the average moving cost to tenants was £1,400 per move in 2017. Tenants are therefore unlikely to move unless they really need to, particularly when they have recently started a new tenancy. Tenants will be able to give notice at any point during the tenancy to avoid replication of fixed terms. In circumstances where tenants do leave unexpectedly, a requirement of two months’ notice from the tenant, increased from four weeks’ notice, ensures that landlords have sufficient guarantee of rent and enough notice to find new tenants and avoid lengthy void periods. Currently, tenants are normally required to provide only four weeks’ notice, unless otherwise specified in their contract, and we have extended this to two months in recognition of the increased flexibility tenants will have. Tenants will remain liable for the rent throughout the two-month notice period. If a tenant leaves without giving the correct notice or paying the remaining rent, landlords have options to recover their costs. Money from the tenant’s deposit can be used to cover the final month’s rent, and landlords can apply to a county court to claim larger sums if necessary.