The Negotiator website has profiled the differences between contractual periodic and statutory periodic tenancies.

When the fixed term of an Assured Shorthold Tenancy (AST) comes to an end the tenancy runs to a periodic. The type of periodic tenancy depends on what has been documented in the AST agreement.

A contractual periodic tenancy is in place when the AST explicitly outlines the transition to a contractual periodic tenancy at the end of the fixed term.

A statutory periodic tenancy arises when the AST doesn’t include post-fixed term arrangements.

There are some key differences between the two types of periodic tenancies regarding rent increases, responsibility for council tax and the How To Rent Guide.

Rent increases

Many AST’s have a rent increase clause included allowing the landlord the option of increasing the rent on an annual basis.

For contractual periodic this clause, providing it is classed as a fair term, can be used to evoke a rent increase without the need for a Section 13 rent increase notice.

Where your AST has no rent increase clause then you would need to serve the Section 13 notice.

If you have a statutory periodic then the landlord should not create a rent review clause as the fixed term and the statutory periodic tenancies are separate agreements.

With a statutory periodic you would need to serve the Section 13 notice and have no rent increase clause.

How to Rent Guide

If the ‘How to Rent’ guide has changes since the fixed term started and the tenancy runs into a statutory periodic, thus creating a new tenancy, then it is important to issue the tenant with any revised How to Rent Guide.

Council Tax

In a contractual periodic tenancy, the tenant remains liable for council tax until the tenancy concludes. The tenant is still liable if they move out without giving notice.

For a statutory periodic tenancy the tenants remain responsible for council tax only whilst they are living in the property.