Landlord Products / Services
When a tenancy agreement has expired or is due to expire shortly, it’s common for landlords to arrange for a new tenancy agreement to be agreed upon and signed, sometimes with new terms (e.g. new rent rate).
So I just want to quickly run through a few of the FAQs I often come across when tenants and landlords are in this situation…
FYI, I’m going to write this from the perspective of a tenant, but it should also give landlords an insight on their position.
Do I have to sign a new tenancy agreement?
In short, no.
You are not obligated to sign a new tenancy agreement, and no one can force you to do so. However, there may be consequences to this decision, which should come as no surprise.
What happens if I [the tenant] don’t sign a new tenancy agreement?
If a new tenancy agreement isn’t signed after the fixed term expires – and you continue to live in the property – the tenancy automatically becomes a periodic tenancy.
This means that the original terms and conditions still apply, but the contract becomes a rolling one, typically based on how often rent is paid. For example, if rent was paid monthly during the fixed term (as is common), the tenancy will shift to a monthly rolling contract.
As a landlord, I usually allow my fixed-term tenancies to roll into periodic tenancies because they offer more flexibility for everyone involved. My priority is to keep good tenants for as long as possible, but I also don’t want to trap them if they decide to move on.
Will the tenancy agreement automatically terminate if I don’t sign a new tenancy agreement?
Nope.
This is a common misconception.
I’ve kind of already answered this question previously, but I do want to make it clear that tenancy agreements don’t automatically terminate, they need to be actively terminated by either tenant or landlord following proper procedures.
To terminate a tenancy, a landlord or tenant needs to give proper notice (or come to a mutual agreement). If that does not happen, the tenancy will NOT automatically terminate after the fixed term expires, the tenancy will – as discussed – automatically roll onto a periodic tenancy.
To illustrate my point, if you have a fixed term tenancy agreement that expires on 24th March 2025, the landlord will not have grounds for automatic possession of the property on that date if they have NOT given you official written confirmation with at least two months notice.
I’ve written a separate blog post covering the different ways a tenancy can be terminated.
What happens if I [the tenant] don’t agree to the new terms of the tenancy agreement?
9 out of 10 times, this happens when there’s a proposed rent increase.
Basically, you feel the increase is unjust, and therefore you’re not prepared to sign the new tenancy agreement.
First and foremost, landlords are entitled to increase rent, but as per the Gov guidelines, it must be done the right way:
- your landlord must get your permission if they want to increase the rent by more than previously agreed
- the rent increase must be fair and realistic, which means in line with average local rents
If you feel you have a legit case for disputing the rent increase on unfair grounds, I’ve written a separate blog post on how to dispute rent increases.
In this case, I personally think the best approach is to first and foremost have an honest conversation with your landlord and see if it’s possible to negotiate the rate. Most decent landlords value good tenants, so they will do their best to keep them happy (of course, this is dependent on whether you and your landlord are reasonable humans on good terms).
If you’re reluctant to sign a new tenancy agreement for other reasons, I’d love to know why, so please leave a comment below.
Can I be evicted if I don’t sign a new tenancy agreement?
Unfortunately, yes.
But actually, landlords don’t need a specific reason to repossess their property once the fixed term has ended anyways. This means they can reclaim the property if you refuse to sign a new tenancy agreement. They can do this by issuing a Section 21 “no-fault” possession notice, which essentially means: “The fixed term we both agreed on has expired (or expiring shortly), and I, the landlord, would like my property back.”
If you don’t sign a new tenancy agreement, the landlord can choose to end the tenancy after the fixed term using Section 21, provided they give you 2 months’ written notice.
So if you’re looking for more stability, signing a new tenancy agreement with fixed terms is one way to secure it.
Hope this helps.
Oh, and BTW, please don’t forget to read my “I’m not a legal professional” disclaimer below :)
If you have any further questions, please feel to drop a comment and I’ll do my best to give you my thoughts.
Landlord out xo
Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.
Hi, my landlord wants me to sing a new fixed term tenancy and removed the break clause. I asked for it to be put back in and the break clause now telecast that the notice to be given is the term of tenancy.
I am reluctant to sign it? I’m ok with rent increase but believe it’s fair for us both to have an out.
What are your thoughts on this?