Contractual and Statutory period tenancy

As a future landlord, I just wanted to see if I understood these terms correctly.

Essential both these types of tenancy would come into effect after the AST is over be it 6 months or 12 months. The contractual is pre agreed at that start of the original AST whereas Statutory will come in to effect if no fixed tenancy agreed and hence the contract rolls on month to month.

I presume the benefit of this is that technically an agreement is renewed, so you wouldn’t have to pay letting agent’s renewal fees.

How would you deal with rental increases with statutory agreements.

Which type of tenancy do you prefer and why.

I await your sage comments.

Letting a tenancy go periodic is partly about saving re-letting admin costs, but its also about having the ability to serve notice immediately if the tenancy goes bad. Most experienced landlords I know have a 6 month initial term followed by a CPT. Rent increases are handled via a s13 notice.

Dear David,

So I assume the 6-Month CPT simply rolls over. With the Contractual periodic tenancy being mentioned in the original tenancy agreement and perhaps signed separately by the tenants?

Is the above correct ?

Furthermore, if the tenancy turns sour I assume you can give notice 2 months prior to the 6 months end date, and the same with rental increase.

What are the benefits of CPT over SPT. CPT is simply one tenancy but would SPT be technically a renewal after an initial AST.


No, that’s not how a CPT works. In fact its one continuous tenancy that is contractual from the start, but with a longer initial period. One of the current advantages of a CPT over an SPT is about Council Tax. If a tenant on an SPT moves out before the end of the tenancy, the landlord becomes liable for the CT and would have to try to re-claim it from the tenant. With a CPT of at least 6 months, the tenant remains legally liable.

Can I suggest some training. The answers to your recent questions are but a few drops in an ocean of vital information. The landlord associations have some very good foundation training that would pay dividends.

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