What is a Tenancy Agreement?
A Tenancy Agreement is a legally binding contract between a landlord and tenant that sets out the legal and contractual responsibilities and obligations of the two parties involved. It should be written in plain, intelligible language and with no unnecessary jargon. Its terms and clauses should be fair and balanced and any individually negotiated terms should be clearly stated. At Anderson Hacking, a lot of attention and care has been taken to ensure the Tenancy Agreement we use is as thorough and fair as possible; both landlord and Tenant are given copies of the Agreement in good time before the start of the contract so any questions or queries can be raised before commencement of tenancy.
What is an Assured Periodic Tenancy?
The most common form of Tenancy agreement that will now be issued is an ‘Assured Periodic Tenancy (an APT) under the 2025 Renters Rights Act which now supersedes the 1988 Housing Act (amended 1996). This type of tenancy replaces the previous tenancies of Assured Shorthold Tenancy (AST) and as from the 1st May 2026 all tenancies have automatically become Assured Periodic Tenancies.
What happens under the Renters Rights Act 2025.
As a landlord in the UK, staying informed about changes in legislation is essential to protect your investment, ensure compliance, and safeguard your rental income.
The Renters’ Rights Act represents a seismic shift in the private rented sector, introducing several reforms aimed at increasing tenant protections and tightening landlord responsibilities.
Why Is the Renters’ Rights Act so important?
The Renters’ Rights Act has been described as one of the most transformative pieces of legislation for landlords in decades.
Aimed at tackling issues such as insecure tenancies, sub-standard housing, and power imbalances between landlords and tenants, the Act introduces sweeping changes to the private rental sector.
Every landlord in England – regardless of how many properties they own – will be affected, so understanding the new legal responsibilities is crucial to avoid penalties and stay compliant.
Key Changes at a Glance:
- Abolition of Section 21 “no-fault” evictions
- All tenancies to become periodic with no fixed term
- New and revised Section 8 grounds for possession
- Extended notice periods for certain evictions
- One rent increase per year, aligned with market value
- Tenants can challenge rent increases via tribunal
- Ban on rent in advance (except for initial rent)
- Tenants have a default right to request pets
- Mandatory registration on the Private Rented Sector Database
- Compulsory membership in the Landlord Redress (Ombudsman) Scheme
- Decent Homes Standard and Awaab’s Law enforcement
- Rent Repayment Orders extended to 24 months
- Anti-discrimination rules banning clauses excluding children or benefit recipients
Please contact our letting team at Anderson Hacking to understand the full impact of the change in legislation.
Can any other forms of tenancy be used?
If certain specific conditions are met relating to the proposed letting, a ‘contractual’ non- housing act tenancy must be created. An example of this would be what is commonly referred to as a Company Let where the tenant is a bona fide registered company, another would be where the annual rent equates to over £100,000. A more likely situation is if the premises is not going to be used as a main and principal home or a ‘Pied-a-Terre’ and or Holiday Let, finally if the Landlord is resident and the tenants occupy part of the Landlord’s property. Here at Anderson Hacking we can advise which contract is right for you and advise the implications of each accordingly.
Who is responsible for council tax, water rates and other utilities?
A tenant under an Assured Periodic Tenancy (APT) becomes liable for payment of council tax, water rates, gas and electricity charges, and TV licence and telecom costs. Some rents may include some or all of the utilities and charges, if so, what is included will be clearly stated within the tenancy agreement. Upon signing a tenancy agreement we inform all the utility companies and provide meter readings. We also contact the local authority and advise them of the tenant’s occupation date.
What referencing and credit checking facilities are available?
We employ the services of an external credit agency called Homelet. They offer us a broad range of tenant referencing products to assist us in selecting the right tenants for the right properties. We find using an external agency offers complete transparency and a non-biased conclusion. Landlords can request copies of the referencing report if they wish, but this can only be provided with the tenants permission under Data Protection Act rules.
What about an inventory and schedule of condition?
This is an absolutely essential document that provides a written benchmark at the start of every new tenancy. The document is amended, updated and recreated before the beginning of each new tenancy. A properly constructed Inventory and Schedule of Condition details the fixtures and fittings and describes their condition and that of the property generally. It is a document that helps protect the interests of both landlord and tenant and helps administer the tenants security deposit at the end of the tenancy. It is a document that is created by a member of our staff and a copy will be provided to both parties at the start of every tenancy. Any agreed amendments may be noted within the first seven days of any new tenancy.
What about the tenancy deposit?
It is now law that a deposit can be taken to equivalent of 5 weeks rent (for tenancies under £50,000 pa) and is required to be held in during the tenancy, against the satisfactory performance by the tenant of all the obligations under the tenancy agreement; but mainly, those relating to the cleanliness and condition of the property. Anderson Hacking is registered with the Deposit Protection Service (DPS) and the deposit monies get sent to them within 10 days of the start of any new tenancy to be held on the Landlords behalf.
