Ending and Extending a Shorthold Tenancy: A Complete Guide for Landlords

Ending and Extending a Shorthold Tenancy: A Complete Guide for Landlords

Understanding Fixed-Term Tenancies

An Assured Shorthold Tenancy (AST) is the most common rental agreement used in England and Wales. These contracts establish the legal relationship between landlord and tenant, outlining rights, responsibilities, and the tenancy duration.

Fixed-term contracts run for a specified period—typically six or twelve months. During this time, neither party can end the tenancy early unless the agreement includes a break clause that permits earlier termination under specific conditions.

Tenants receive minimum six-month protection under AST arrangements. Landlords cannot use a Section 21 notice to regain possession within the first four months of a tenancy, regardless of fixed-term length.

Break clauses provide flexibility when both parties agree to include them. They typically allow either landlord or tenant to end the agreement early—usually at the six-month point of a twelve-month contract—provided proper notice is given.

Important note: Rules governing tenancy endings may change significantly under the Renters’ Rights Bill, which proposes abolishing Section 21 “no-fault” evictions. Landlords should stay informed about legislative developments.

How to Extend an Assured Shorthold Tenancy

When fixed terms approach their end, landlords have two primary options for continuation.

1. Renewing with a New Fixed Term

Creating a fresh fixed-term agreement provides certainty for both parties. If you’re using a letting agent, they’ll typically handle tenancy renewal administration, including:

  • Preparing new tenancy documentation
  • Discussing potential rent increases or decreases based on market conditions
  • Coordinating signing and documentation

Agents may charge renewal fees for this service, though costs vary between providers.

When renewal makes sense:

  • You want guaranteed income for another fixed period
  • The tenant prefers security of tenure
  • Market conditions support rent adjustments
  • You’re planning property improvements requiring tenant cooperation

2. Allowing the Tenancy to Become Periodic

If no new agreement is signed when the fixed term ends, the tenancy automatically becomes a statutory periodic tenancy. This arrangement rolls on month-to-month (or week-to-week, depending on rent payment frequency).

All original tenancy obligations remain in force—rent amounts, maintenance responsibilities, and house rules continue unchanged.

Benefits of periodic tenancies:

  • Flexibility for both parties
  • No renewal paperwork or fees
  • Tenant can leave with one month’s notice

Risks to consider:

Need Expert Support Managing Your Rental Properties?

Explore our landlord resources and financing solutions designed for property investors at every stage. From portfolio expansion to compliance guidance, our specialists understand successful property investment.

How to End an Assured Shorthold Tenancy

Understanding how to end a tenancy legally protects landlords from costly mistakes and invalid notices.

Using a Section 21 Notice

A Section 21 notice allows landlords to regain possession without proving tenant fault—commonly called “no-fault eviction.” This notice:

  • Can be used at the end of a fixed term or to trigger a break clause
  • Cannot be served within the first 4 months of the tenancy
  • Requires at least 2 months’ notice to the tenant
  • Must be served correctly using the prescribed form (Form 6A)

Critical compliance requirements before serving Section 21:

You cannot serve a valid Section 21 notice unless you’ve complied with all landlord legal obligations:

  • Deposit protection in an approved scheme (DPS, TDS, or MyDeposits)
  • Prescribed Information provided to tenants within 30 days
  • Valid Energy Performance Certificate (EPC) given to tenant
  • Current Gas Safety Certificate provided annually
  • Copy of the How to Rent guide supplied at tenancy start
  • Smoke alarms and carbon monoxide alarms properly installed and tested

You cannot forcibly remove tenants. If tenants don’t leave voluntarily after notice expires, you must apply to court for a possession order. Legal proceedings must begin within 6 months of serving the notice, or it becomes invalid.

According to GOV.UK guidance on Section 21 notices, landlords must follow precise procedures to ensure notices are legally valid.

Serving a Section 21 Notice Correctly

Attention to detail prevents costly delays and invalid notices.

Essential documentation and compliance checklist:

  • Deposit protected with DPS, TDS, or MyDeposits within 30 days of receipt
  • Prescribed Information provided to tenant within the same timeframe
  • EPC given to tenant before tenancy began
  • Gas Safety Certificate provided annually and at tenancy start
  • How to Rent booklet supplied (current version)
  • Smoke alarm and carbon monoxide alarm compliance verified

Following timelines exactly is crucial. Missing any requirement—even minor administrative errors—can invalidate your notice entirely, forcing you to restart the process and potentially costing months of additional rent-free occupation.

For guidance on proper documentation throughout tenancies, see our article on preparing for new tenancies.

Evicting a Tenant for Other Reasons (Section 8)

Section 8 eviction applies when tenants breach tenancy terms. Unlike Section 21, landlords must prove specific grounds for possession.

Common Section 8 grounds include:

  • Rent arrears (typically two months or more)
  • Antisocial behaviour affecting neighbours
  • Property damage beyond fair wear and tear
  • Breach of tenancy terms (unauthorized subletting, pets where prohibited)

Section 8 notices require supporting evidence and specify which grounds apply. Notice periods vary depending on the grounds claimed—from immediate notice for serious antisocial behaviour to two months for rent arrears.

Possible court outcomes:

  • Possession order requiring tenant to vacate
  • Repayment orders for rent arrears
  • Costs awarded to landlord
  • Suspended possession orders (conditional on tenant compliance)

Section 8 is less common than Section 21 but sometimes necessary when tenant behaviour makes continued occupation untenable.

Ready to Protect Your Property Investment?

Whether you’re expanding your portfolio or optimizing existing rentals, Million Plus connects professional landlords with quality tenants. Our platform emphasizes transparency, professionalism, and compliance—the foundations of successful property investment.

When Tenants Do Not Vacate

If tenants refuse to leave after valid notice expires, landlords face a structured legal process.

What you must NOT do:

  • Change locks while tenants occupy the property
  • Remove tenant belongings
  • Disconnect utilities
  • Harass or intimidate tenants to leave

These actions constitute illegal eviction and can result in criminal prosecution and civil liability.

What you must do:

  • Apply to court for a possession order
  • If tenants still refuse after court order, request bailiff enforcement
  • Document everything throughout the process

The eviction process UK can take several months from notice to physical possession. Seeking legal advice early helps navigate complexities and avoid procedural errors that restart timelines.

According to Citizens Advice guidance on eviction, both landlords and tenants have specific rights that courts will enforce.

Best Practices for Landlords When Ending or Extending Tenancies

Professional approaches minimize disputes and protect your investment:

  • Communicate early and clearly with tenants about your intentions
  • Keep detailed documentation of all notices, communications, and compliance
  • Work with a letting agent for smooth legal compliance and professional handling
  • Maintain good relationships to encourage cooperative endings
  • Understand your rights AND responsibilities—cutting corners creates problems

Whether you’re managing buy-to-let investments or handling your first tenancy ending, professional conduct protects your interests.

Final Thoughts

Ending a shorthold tenancy or extending an AST involves strict legal rules that landlords must follow precisely. Invalid notices, missed compliance requirements, or procedural errors cause costly delays and potential legal liability.

Understanding the difference between Section 21 notice rules and Section 8 eviction is essential for every landlord. Section 21 provides straightforward no-fault possession when all compliance requirements are met, while Section 8 addresses specific tenant breaches requiring evidence.

A good letting agent or legal adviser ensures full compliance and proper procedure—investments that pay for themselves by avoiding mistakes.

Most importantly, staying updated with Renters’ Rights Bill changes is crucial. Proposed legislation may significantly alter how landlords can end tenancies, potentially eliminating Section 21 entirely and requiring landlords to prove specific grounds for all possession claims.

Whether extending successful tenancies or navigating endings, knowledge of your landlord legal obligations protects your property investment and ensures smooth transitions.

Talk to our team

 
Sidebar contact form

Financing

We offer in-house expertise for mortgage, marine and aviation finance plus many other services. To discuss requirements,