Where a fixed term assured tenancy comes to an end by effluxion of time, a statutory periodic tenancy arises: s.5(2), Housing Act 1988. Subject to the provisions of the Act, the terms of the statutory periodic tenancy are, in general terms, the same as those which applied during the fixed term: s.5(3).
Increases in rent for periodic assured tenancies are governed by ss.13 and 14, 1988 Act. Section 13(2) allows a landlord to serve a notice proposing a new rent. If the tenant does not accept the proposed rent, he may refer the notice to a rent assessment committee in accordance with the provisions of s.14: s.13(4). Section 13(1) provides that the landlord’s right to use the statutory procedure applies to:
“(a) a statutory periodic tenancy…; and
“(b) any other periodic tenancy which is an assured tenancy, other than one in which there is a provision, for the time being binding on the tenant, under which the rent for a particular period of the tenancy will or may be greater than the rent for an earlier period.”
In June 2001, the appellant landlord granted the respondents an assured tenancy of a property for a term of three years. Clause 6 of the tenancy agreement provided that the yearly rent payable during the term or any subsequent statutory periodic tenancy would increase by five per cent each year.