Short assured or private residential tenancy

Short assured tenancies must have a fixed term of at least six months. Where the lease is silent on what happens at the end of this period the contract repeats under the same terms for the same duration (up to a maximum of one year if the original lease was for longer than this) until either party gives notice to quit. This process is known as ‘tacit relocation.’ See the section on the lease automatically repeats for more information on this. Short assured tenancies can continue via tacit relocation until ended by either party and will not become a private residential tenancy unless both parties agree to this in writing.

Where the lease states that the lease continues after the initial fixed term, for example that it continues on a month to month basis, this is considered to be a new ‘contractual tenancy’ however this tenancy can continue indefinitely and does not become a private residential tenancy unless both parties agree to this in writing.

Where there has been a short assured tenancy created prior to 1st December 2017 and the landlord and tenant sign a new agreement, this is a new ‘contractual tenancy’. This will continue to be a short assured tenancy so long as the premises are ‘the same or substantially the same’ and the landlord and tenant (or joint tenants) are the same.  [1]

In order for the short assured tenancy to continue the legislation requires that the premises be ‘the same or substantially the same’. [2] So if the landlord and tenant are the same but it is a completely different property any new agreement will be a private residential tenancy.  

Where the landlord has changed, for example where the property has been bought by a new owner, the new owner takes on all the obligations of the lease. Any current short assured tenancy will continue. However if a new agreement is signed then this new contractual agreement will be a private residential tenancy.

In the same manner, where there are changes to any of the tenants named in the original agreement any new contractual agreement will be a private residential tenancy. So for example, where there have been two joint tenants and one tenant leaves, a new joint tenant entering the agreement would mean the new agreement is a private residential tenancy.

It maybe possible for a landlord to 'assign' the original tenancy to a new tenant but this could be complex. Where this situation arises paperwork needs to be looked at thoroughly. See the section on assignation for further discussion on this.

The Upper Tribunal (UT) has ruled that a private residential tenancy was not created when tenants with an existing short assured tenancy (SAT) signed a new SAT agreement with their original landlord’s widow after 1 December 2017. [3] Relevant factors in making this decision included an analysis of section 55 of the Housing (Scotland) Act 1988 which defines the term ‘landlord’. The UT decision states that:

“If section 55 applies, then the “landlord” would include the respondent as a person deriving title to the property from the original landlord, her late husband. As the tenants had not changed, the landlord and tenant would be the same as in the previous agreement.”

A tenant and landlord in dispute about whether their agreement is a short assured tenancy or a private residential tenancy can apply to the First Tier Tribunal to seek a decision. [4]

There is an option for a landlord and tenant to agree to convert an existing assured or short assured tenancy into a private residential tenancy if both parties choose to do so. [5]