What is a periodic tenancy?
A periodic tenancy is one where there is a rolling tenancy with no fixed end date. Tenants will, however, need to give 2 months’ notice when ending their tenancy so the landlord has can recoup the costs of finding a new tenant and “avoid lengthy void periods”.
Why are landlords worried about them?.
All new and also assured shorthold tenancies will become periodic tenancies at a later date which is yet to be announced. Landlords are worried partly due to the change in the contract, which can be daunting if you're a self-managing landlord as you don't want to run the risk of having an illegal tenancy, especially when there is so much new legislation coming in 2023 to keep on top of at the same time.
Landlords also don't want tenants coming and going often, as it's much easier to have a tenant who is settled rather than have to let your property and find a new tenant 3 or 4 times in a year.
All in all, periodic tenancies aren't anything to fear, but they are something to be aware of that is coming into force next year. Also, the data shows tenants are staying in their properties for longer right now due to massive competition for accommodation in the market, which has lead to continued price rises.
As we enter a recession to begin 2023, this trend of staying longer may well continue, and so the flexibility provided with periodic tenancies may not be exercised as much as you may think by tenants over the next 12 months or so.
To ensure you're compliant with the current and upcoming legislation, book in a call with our team below
