Renewal/Continuation of tenancy

Tax Planning and Financial

It is often thought by landlords and tenants alike that the tenancy of a property is only for the fixed term period stated in the tenancy agreement (usually six months), and at the expiry date, must be renewed for another fixed term, with new documentation, for the tenancy to be valid. This is not true. Under Section 5 of the Housing Act 1988, a tenancy will continue on the same terms and conditions after the fixed term, but on a month to month basis (assuming the contract is monthly). This way, there is more flexibility on both sides after the fixed term, in case circumstances change, and they often do. Estate Agents will promote renewal of the agreement, so they can charge another hefty fee! However, if the landlord insists on renewing the tenancy for another fixed term, and the tenant does not want to commit to this, the landlord will have to seek possession under Section 21 of the Housing Act 1988.