Key Post Summary of the rules for terminating tenancies

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LarryScott

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I am trying to create a full table with the rules. Subject to change/correction obviously.

Use at your own risk :)

DateNo Fault
< 6 months		No Fault
Anytime		No Fault
End of 6 year cycle		Fault
Anytime
Until 10 June 2022
(Ends after 6 years, auto-renews with new rules at the time of renewal)		No Reason
(NoT exactly 90 days)
  • Sell within 9 months
  • Landlord/Family move-in
    (Nieces/nephews or closer)
  • Substantial refurbishment
  • No longer suitable (e.g. to small)
  • Change of use
  • Don't need a reason
  • Tenant breech
  • Unpaid rent
11 June 2022 - 28 Feb 2026No Reason
(NoT exactly 90 days)
  • No change
  • none (unlimited duration)
  • No change
Starting 1 Mar 2026
(Small Landlords)		No Reason
(NoT exactly 90 days)
  • Sell for financial hardship
  • Landlord/Family move-in as PPR
    (Niece/Nephew or closer)
    (Spouse/Civil P/Child/Parent)
  • Substantial refurbishment
  • No longer suitable (e.g. to small)
  • Change of use
Rent reset to market allowed at start of tenancy if previous tenant left voluntarily, or due to tenant's fault

RTB will determine Market rent.
There is talk that it will be limited to a 6% increase at any one time.
  • Don't need a reason
  • Sell within 9 months
  • Substantial refurbishment
  • Change of use
  • Landlord/Family move-in
    (Who?)
In theory, rent reset to market allowed at end of cycle instead of above (1 March 2032 earliest possible, so government after the next election decides)

RTB will determine Market rent.
There is talk that it will be limited to a 6% increase at any one time.
  • Tenant breech
  • Unpaid rent
Starting 1 Mar 2026
(Large Landlords)		No Reason
(NoT exactly 90 days)
  • No longer suitable (e.g. to small)
  • Tenant breech
  • Unpaid rent
 
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Keep in mind also that post March if you are evicting within the first 6 months, you will have to give a reason. Expect that reason to be challenged ie. you evict the tenant because the neighbours complained of noise, the tenant takes a case because you didn't tell him this and give him a fair chance etc. etc. So effectively, once you hand over the keys post March, the tenant is very likely in for 6 years or for life.
 
JamieB_ said:
I would take out rent reset to market rent, because that will never be allowed
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In retrospect, I think it may actually be allowed for tenants who leave voluntarily (no fault / anytime).

A tenant on near market rent may decide to leave voluntarily, since the slightly lower rent isn't to much to give up.

If a tenant starts in a previously owner occupied house in 2024 and leaves in March 2026 he will have a below, but near, market rent, he could potentially leave. For example, if he has a new job in another city, or wants to move for another reason, it could easily be worth it.

Since the increase in rent is small, it wouldn't be that politically difficult to allow it to happen.

These tenancies aren't the ones that landlords are complaining about, so it doesn't solve the core problem. However, at least for those houses, the problem won't be getting worse, since they could get a small market reset every few years.

They landlords in question would be living in fear that they might eventually get a long term renter and then they have to wait 6 years. In that case, the massive increase that would occur would probably be politically blocked.

There is also the problem of a tenant who sub-lets to a licensee, so even though he leaves, the tenancy continues.

I wonder can you require that the tenant use it as the PPR in the lease. A no-subletting clause seems difficult to enforce and wouldn't really apply to "guests".

Greenbook said:
Keep in mind also that post March if you are evicting within the first 6 months, you will have to give a reason.
Click to expand...

Where was this stated? Is there a list of the valid reasons?

Does it only apply to post 26 tenancies?
 
But the market rent will no longer be the market rent. It will be a figure based on the RTBs database of rent restricted properties and not an open market rent. This is all an effort to trap landlords into not being able to get out of the business without huge writedowns in value. And then to have a different "market" to a real open market rent.

And as Greenbook pointed out earlier, the increases allowed virtually guarantee a loss going forward.
 
There is talk also of a rent break (most recent Housing Committee hearing and Threshold have suggested the same thing). If 'market' rents on tenancy turnover or at year 6 increase by over 10%, the only a maximum 6% increase will be allowed.

So, if you rent for 6 years, your maximum annual increase will be 2%. You'll then get an additional 6% i.e. at absolute best an average increase of a little over 3% per year when you include compounding. Property related inflation (insurance, management fees, trademen etc.) is running far higher than that and does not look as if it will fall. So, after 6 years, just accounting for inflation, you are behind. T

If your rent was low already due to the RPZs, you're even worse off.

You can be sure also that inspections will ramp up and Councils will find lots of costly repairs and improvements for you to carry out.

You'll end up with a liability that you can't exit from
 
Greenbook said:
If 'market' rents on tenancy turnover or at year 6 increase by over 10%, the only a maximum 6% increase will be allowed.
Click to expand...

That isn't very clear. If the rent increase is 9%, you can go with it. However, if it is 10%, you can only raise by 6%. Presumably, landlords will raise the rent by 9.9% :).

I think, realistically, the rule is basically guaranteed to activate, one way or another.

A landlord who wants the rent to stay at market would need to aim to have average tenancies of less than 2 years. That way they can bring them back to market while staying below any one increase of more than 6%.

They could handle a 3 year tenant, if it happened, as long as they get a shorter one afterwards to compensate.
 
There is no provision for a Landlords who have long term tenancies well under market rates in the new rules.
There are a substantial number in this category.
I have no wish to take your thread off in a tangent
So many variables to be dealt with which I appreciate it makes it difficult to deal to do a summary in an over regulated market
 
LarryScott said:
That isn't very clear. If the rent increase is 9%, you can go with it. However, if it is 10%, you can only raise by 6%. Presumably, landlords will raise the rent by 9.9% :).
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You're right and some very hard sums would be needed to sort that one out! Likely, they'll just say max 2% no matter what.
LarryScott said:
A landlord who wants the rent to stay at market would need to aim to have average tenancies of less than 2 years.
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Whichever way you cut this, short tenancies are the way to go. That's completely contrary to the stated aim of the new policies - to create stable long term tenancies. Didn't they spot the incentives they were creating for landlords?
 
Greenbook said:
Whichever way you cut this, short tenancies are the way to go. T
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How would you go about a short tenancy, very few rent short term? And if if the tenant said they would rent short term, they do not have to comply with that, they could just stay and nothing you can do about it..
 
Colin4444 said:
How would you go about a short tenancy, very few rent short term? And if if the tenant said they would rent short term, they do not have to comply with that, they could just stay and nothing you can do about it..
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I mean you pick tenants who you know/hope will be short eg. students, people on contract, young people, wealthy people.

It is not foolproof, but you just avoid anyone who looks like they will be long term.
 
Just wondering now, if you have 2 rentals here and 2 in the UK for example, are you a large or a small landlord?
 
Thank you for table above.Are Part 4 tenancies affected in terms of selling with tenant in situ after March 1.Also I understand that you don't have to give a reason for termination after 6 year cycle ends for part 4 tenancy.Will this stay the same after March1
 
@triggs, I think that is correct, the old Part 4 six year cycle isn't affected by the new rules, so you can end the tenancy at year 6 without giving a reason.

What hasn't been answered if what happens if you don't - does your tenant get a new Part 4 six year lease meaning you can evict to sell etc. in the meantime or do they get a 6 year/lifetime lease under the new rules.
 
That is the question.Can a landlord with an existing Part 4 be able to sell property and have to sell with tenant in situ after Mar 1
 
I think no matter what type of landlord that once you give a NoT to a tenant the property, even if bought by someone else is then stuck on the existing rent and no more than 2% increments per year after that. So the rent you are getting when you issue a NoT is what will determine the value of your property after that.
 
JamieB_ said:
So the rent you are getting when you issue a NoT is what will determine the value of your property after that.
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Owner occupiers won't be affected, so as long as the house can leave the rental market, it should achieve market rate. It's for this reason I suspect alot more properties are going to leave the rental market.
 
Just shows the lack of joined up thinking. If you have a property rented at well below market rent, the rent can never increase for as long as the current tenant remains (maybe there is an increase in six year's time, but I doubt that will be signficant). The landlord therefore has no choice but to evict and sell. No other landlord will buy because the rent is low. Only an owner occupier will, so that property will definitely leave the PRS.

That is great for first time buyers, but the whole purpose of these reforms is to increase the number of rental properties.

Also, these will be long term tenants who are being displaced. No sane landlord going forward will want to tie themselves up with a long term tenant so they will struggle to find a new tenancy.
 
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