Act Now - Save the ASTs

Act Now - Save the ASTs

The hype and the news is all about the abolishment of Section 21, but there is a bigger elephant in the room for London rentals when it comes to the proposed abolishment of AST (assured shorthold tenancies). Read on to discover the big issues that may come with this and sign the petition today!


Assured Shorthold Tenancies (ASTs) allow landlord and tenants to agree a fixed term tenancy. A fixed term tenancy can be anything from 6-36 months, with added pre-agreed break clauses. Which are balanced agreement that either the tenant or the landlord can give a 2 month written notice anytime before or after the proposed break clause.

The renters reform bill is setting out that ASTs are going to be abolished. Assured periodic tenancies are going to take its place instead. Mentioning that the payment period allowed is a maximum of one month (28days as stipulated in the bill). And tenancies will be on a month by month basis.

It goes on to explain that any payment terms which are agreed for longer than 28 days will make the tenancy agreements invalid.

Here are a few complications which this will bring if this were to be passed:


6-12 month upfront payments will be banned.


International students who do not have UK guarantors and also those that are self employed and/or do not have the correct documentation in order to pass on affordability during the referencing, are often given the option of paying their rent in advance to eliminate risk for the landlord.

Referencing is carried out in order for landlords to gain full rental insurance. Insurers currently do not insure a landlord on their rent if the renter cannot prove affordability.

If as the bill proposes, we become unable to suggest upfront payments as a solution to this. This will in turn restrict landlords from accepting students or newly self employed (start up businesses) as tenants for their properties. Which combined in the last 12 months amounted to 48% of tenancies at Greater London Properties.

Meaning this change will be drastic and imposing on the London rental market as well as potentially effecting London universities and even go on to affect economy.


No minimum term



Good landlords (which amount to 90% of landlords in the UK) will ensure that at the start of a new tenancy the property is prepared for the new tenant. This includes professional cleaning, repainting, removal or additions of furniture and paying for safety checks (to name a few).


With the bill changing tenancies to periodic tenancies and not considering to implement a minimum term, this may mean, without reason or a sudden 'change of mind' tenants can simply hand in their notice as soon as one month into the tenancy and leave on the second or third month. Or with the promise of it being a long term tenancy (therefore paying for a long term tenancy rate) use the property as a short let.


This creates huge losses for landlords, having to re-market and prepare their property for a new tenant again, in just 2-3months after signing the initial tenancy agreement. As well as having the take on the costs of utility bills in between each tenancy.


Student Lets.



Often a landlord who has a student let, fixes the tenancy agreement for 12months, in order for the properties to come back onto the market in time for the new wave of students (if the current ones do not want to renew). This helps to ensure there are always properties on the market during the summer months for when the students are trying to find a local property with their friends to continue studying once they move out of the halls in first year.


Periodic tenancies will make it so that some students who leave half way through the year, or once they have finished their exams will leave earlier than planned. Meaning that the properties which are kept for students, come onto the market during the spring, or earlier.


The affect could be that professionals take these - leaving no properties for students. Or the property is left empty for 3 months with no income, forcing landlords out of the market due to losses / costs which come with this.


In conclusion, allegedly the renters reform bill has been designed to make renting more fair and to benefit tenants. Where in fact abolishing ASTs will stop 50% of London tenants being able to rent in the first place.


The reform bill is still going through parliament and hasn’t yet been passed, so we still have time to get our voice heard.

There is a petition available to sign to try to save ASTs. The government need to understand the impact this could have on the London rental market. So please help us to spread the word and get our points heard. Sign the Petition Here

If you wanted any further information on how this could impact you or wanted to talk about your rental if you are looking for a new tenant, contact us today on 0207 113 1066

Thank you
Megan Cutforth
Residential Director
Greater London Properties



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