New Tenancy Structure: What Landlords Must Provide
Overview
Under the Renters’ Rights Act, the traditional Assured Shorthold Tenancy (AST) model is replaced with a new, standardised tenancy structure designed to simplify renting and improve transparency.
This change is intended to give both landlords and tenants a clear understanding of their rights and obligations from the outset, reducing disputes, ensuring fair practice, and providing consistent documentation across the private rented sector.
What’s Changing
When the legislation comes into force, all tenancies will transition to a new form of assured periodic tenancy. At the start of every tenancy, landlords must provide their tenants with a written statement of terms, outlining key details such as:
The amount of rent and how often it is to be paid.
The deposit amount and where it will be protected.
Notice requirements for both parties.
The landlord’s and tenant’s responsibilities.
How repairs, rent reviews, and communication should be handled.
For existing tenants, landlords must provide a UK Government-issued summary explaining what is changing within one month of the legislation taking effect (to follow). Existing tenancy agreements will not need to be replaced.
Key Rules and Requirements
No rent before signing: Rent cannot be taken in advance of the tenancy agreement being signed, but deposits can still be accepted at this stage.
Monthly rent cycles: Rent periods must be monthly or less. Tenants can voluntarily pay more, but landlords cannot require rent in advance beyond one month’s payment.
Written statement is mandatory: The written terms are not optional; failing to provide them could expose landlords to enforcement action or tenant complaints through the new Landlord Ombudsman.
Government template: The government intends to release a standardised form of written statement, ensuring consistency across the market.
Existing clauses remain valid: Clauses in tenancy agreements made before the new law still apply, provided they don’t conflict with the new rules.
Why It Matters
This new tenancy structure is designed to:
Reduce confusion caused by varied private tenancy formats.
Give tenants greater clarity about their obligations and rights.
Ensure landlords comply with documentation and transparency standards.
Provide a single reference point for resolving disputes or queries through the Landlord Ombudsman or local authority.
For landlords, it represents an opportunity to bring their tenancy documentation up to date and align with best practice.
Practical Steps for Landlords
Review existing AST templates and update them to comply with the new structure.
Prepare to issue the government-provided summary to existing tenants once the legislation commences.
Ensure rent collection processes match the new “one month maximum in advance” rule.
Keep copies of all written statements and communication with tenants for compliance and record-keeping.
Liaise with letting agents to ensure all advertising, contracts, and onboarding documentation reflect the new tenancy model.
FAQs
1. Do existing tenants need to sign new agreements?
No. Existing tenancy agreements remain valid, but landlords must issue the government’s summary of changes within one month of the legislation coming into effect.
2. Can landlords still take rent upfront?
Only up to one month’s rent in advance can be accepted once the tenancy is signed. Taking rent before signing the agreement is not permitted. If a tenant wishes to pay more rent in advance than one month for a personal reason, they may do so, but this cannot be requested by the landlord.
3. Will a deposit still be required?
Yes, landlords can still take and protect a tenancy deposit as usual under the Tenancy Deposit Protection rules.
4. What happens if landlords don’t provide the written statement?
Failure to provide the written statement could result in enforcement action from local authorities and a potential fine. Tenants may also raise the issue with the new Landlord Ombudsman.
5. Are student tenancies treated differently?
Yes, student tenancies in HMOs remain periodic but can be ended under Ground 4A, allowing landlords to regain possession at the end of the academic year for the next group of students.