Important tips for Landlord’s on granting or ending an Assured Shorthold Tenancy (‘AST’)

Since 1 October 2015, under the Deregulation Act 2015, a Landlord offering a new Assured Shorthold Tenancy agreement to a tenant must ensure that the tenant is provided with :-

  • A Gas Safety Certificate for the property to be occupied
  • An Energy Performance Certificate
  • The booklet entitled – How to rent: the checklist for renting in England

With effect from 1 October 2018, the above requirements will apply to all tenancies, even those in existence prior to 1 October 2015.

It has also been the case for some time that if a deposit is paid by the Tenant, the Landlord must ensure that:-

  • The deposit is being held in accordance with an authorised Tenancy Deposit Scheme and;
  • the Tenant has received the information about the Tenancy Deposit Scheme within 30 days of the Deposit being received.  Failure to provide such information means that the Tenant has a claim against the Landlord of up to three times the amount of the Deposit.

It is important that a Landlord complies with the above points as this could impede a Landlord’s right to obtain possession of their property at the end of the term of the tenancy.  It is common for Landlords to serve a Section 21 Notice upon the Tenant, if the Tenant does not vacate at the end of the term.  Non-compliance with the requirements set out above will mean a Landlord cannot serve a Section 21 notice, although steps may be taken to rectify the situation and enable service of a Notice.  Alternatively, a Landlord may be able to serve a Section 8 Notice.

A Landlord is further prevented from serving a Section 21 notice:-

  • Within the first four months of the tenancy and must issue any possession proceedings within six months of the date of the Section 21 Notice.
  • If a local housing authority has served notice upon the Landlord about the condition of the property.

With effect from 1 October 2015  for any tenancies granted after that date (and 1 October 2018 for any other tenancies) Landlords must serve upon the Tenants the prescribed form of the Section 21 notice, otherwise, the Section 21 notice will be deemed ineffective.

For further information on granting a new tenancy please contact our Commercial Property team or for advice on serving a Notice to end a tenancy, please contact a member of our Dispute Resolution team.  Both departments can work together to provide overall comprehensive advice to suit your individual or business needs.

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