Security for both landlords and tenants is essential if the rental sector is to be both an attractive option for tenants and a safe and viable investment choice for investors. The rental strategy aims to move towards a situation where longer term tenancies are the norm. The legislation extends tenancies from 4 years to 6 year tenancies. This will apply to all new tenancies that come into operation on or after 24th December 2016 which includes a further Part 4 tenancy that comes into existence on or after 24th December 2016. Landlords can terminate within the first six months of a tenancy without giving a reason. Once a Part 4 tenancy comes into existence it can only be terminated by using one of the grounds listed below.
If a landlord wishes to stop a Further Part 4 tenancy coming into existence they may serve a notice during the Part 4 tenancy with the notice period given to the tenant expiring on or after the end of the tenancy. A notice served in this way should provide a reason for termination but the reason does not need to be one of the grounds set out below. To ensure the notice is valid it is best practice for the notice period given to end during the first six months of the Further Part 4 tenancy.
- The tenant has failed to comply with the obligations of the tenancy (having first been notified, in writing, of the failure, and given an opportunity to remedy it.)
- The landlord intends to sell the dwelling within the next 3 months
- The dwelling is no longer suited to the needs of the occupying household
- The landlord requires the dwelling for own or family member occupation
- Vacant possession is required for substantial refurbishment of the dwelling
- The landlord intends to change the use of the dwelling
More Information regarding Notices of Termination can be found here.
Tenant is residing in the tenancy for duration of 4 years on 1 January 2017. From this date it currently is considered a new tenancy and called a further Part 4 tenancy. As this is a new tenancy, after the 6 months probationary timeline in which a landlord can terminate the tenancy without giving a reason, the tenant becomes entitled to remain in that tenancy for a total of 6 years unless a landlord wishes to terminate the tenancy for the above listed grounds.