How to deal with end of tenancy for the tenant in the UK

Question

I signed (in London - UK) a tenancy agreement in December 2013 for 3 times 1 year (the landlord wanted this instead of a 3 years contract). The term of the contract will arrive in a few months and I'd be happy to stay.

I fear the landlord might ask for a crazy raise like 20% (it appears you always find people to pay stupid amounts in London) and I'd like to know how are things going to play out.

I sent an email stating that I'd like to sign an extension now, the landlord answered that he would be happy to sign another contract at the end of the tenancy (but no info on price).

We are model tenants so he is happy about us, but I still have no security about the price, and I don't want to have to rush into moving out.

1. How is the end of tenancy going to be "decided" (notice, letter, how long before the end of the contract) ?
2. Are there some law that prevent ridiculous increases like in other european countries ?
3. Is the contract automatically rolled over (with what conditions) if he does not send a letter ?
4. Is there an optimal way of doing things for me here (I understand law has changed very recently)

PS: if the question is better asked somewhere else please advise

Answer 1

1. How is the end of tenancy going to be "decided" (notice, letter, how long before the end of the contract) ?

If you leave on or before the last day of the fixed term, the tenancy ends at the end of the fixed term. You're not required to give notice, but it's generally appreciated if you do.

If the landlord wants you to leave at the end of the fixed term, he must issue a section 21 notice at least 2 months before then. If that happens, you're not required to move out at the end of the fixed term, but he can begin legal proceedings to force you out if you stay.

3. Is the contract automatically rolled over (with what conditions) if he does not send a letter ?

Yes. If you stay beyond the fixed term, and no new contract is signed, the tenancy automatically becomes a statutory periodic contract (often referred to as a "rolling" contract).

The terms remain the same as before, except that you must give 1 month's notice to leave (he still has to give 2 months' notice).

2. Are there some law that prevent ridiculous increases like in other European countries ?

Yes and no. If no new tenancy agreement is signed and you're on a rolling contract, he can increase the rent by issuing a formal notice - but there is an arbitration process if you think it's unreasonably high.

If he issues a new tenancy agreement and you sign it, then a new tenancy is created, and the rent is whatever is stated in the agreement. Hence you'd need to negotiate before signing the agreement.

4. Is there an optimal way of doing things for me here (I understand law has changed very recently)

Talk to the landlord. If you've been a model tenant, it would be silly to increase the rent to the level that would force you to leave, or to issue a section 21 notice if you refuse to sign a new agreement. Perhaps you can find some middle ground.

See also Shelter's guide to rent increases.