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Navigating Tenancy Agreements for Landlords and Agents

Published by Prerana
Published Date: May 7, 2024

In the modern property rental landscape of England, it is essential for landlords and letting agents to have an in-depth comprehension of the differences between statutory and contractual tenancy agreements. Experts in the property rental industry have recently emphasised the need to understand the distinctions between these agreements to reduce the likelihood of risks and promote smoother transactions.

Having a solid grasp of the differences between these two types of tenancy agreements can help landlords and agents make informed decisions and avoid misunderstandings.

What Are the Types of Tenancy Agreements?

When a tenant rents a property, they typically agree with the landlord. This agreement can take two forms: contractual or statutory.

  • Contractual Tenancy – This type of agreement clearly states that the tenancy will continue in a periodic basis after the initial fixed term ends. Both the landlord and tenant agree, in writing, to transition to a periodic tenancy. The original agreement usually specifies any rent adjustments and other terms that will apply during the periodic tenancy.
  • Statutory Tenancy – When a rental agreement does not specify any arrangements for post-fixed terms, and the tenant continues to occupy the property without signing a new agreement, it results in a statutory tenancy. In such cases, any adjustments to the rent may be subject to statutory regulations, which can lead to disputes if not clearly understood.

Paul Offley, the Compliance Officer at The Guild of Property Professionals, has emphasised the importance of differentiating between statutory and contractual tenancy agreements. Recent incidents have highlighted the potential risks that can arise from confusion between these agreements among agents. It is crucial for landlords and agents to understand the differences between these agreements to ensure compliance with legal obligations and avoid disputes.

Implications for Landlord and Tenants

Offley provides a basis for the consequences of contractual and statutory tenancies, focusing specifically on rent adjustments and council tax responsibilities. In cases of contractual tenancies, landlords may include rent increase conditions, which allow them to increase the rent on a yearly basis without having to provide additional notices.

Implications for Landlord and Tenants.

However, in the case of statutory tenancies, it is binding to follow the statutory procedures for rent increases. Moreover, the differences in council tax responsibilities between the two types of tenancies can have significant consequences for landlords looking to sublet or rent and the tenants.


When it comes to renting properties, it is crucial for landlords, letting agents and tenants to have a clear understanding of the tenancy agreements. Knowing the differences between statutory and contractual tenancies can help prevent risks, make transactions smoother, and ensure compliance with legal obligations.

With the help of expert guidance and careful attention, landlords and agents can navigate the complexities of the rental sector with confidence, leading to a harmonious and mutually beneficial relationship between landlords and tenants.

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