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Tenancy January 2025

Periodic tenancies: what self-managing landlords need to know about the shift away from fixed terms.

The Renters' Rights Act 2025 removes fixed-term assured tenancies from the private rented sector entirely. All tenancies will become periodic, existing fixed terms will convert on the implementation date, and landlords will need to understand what this means for rent increases, possession, and tenancy management.

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The Renters' Rights Act 2025 makes one of the most fundamental changes to how private tenancies work in England: it removes fixed-term assured tenancies entirely. From the implementation date, every private tenancy will be periodic — running on a rolling basis with no fixed end date. Existing fixed-term tenancies will convert automatically. This article explains what a periodic tenancy is, what the shift means in practice, and what landlords need to understand about rent increases, possession, and tenancy management under the new system.

What is a periodic tenancy?

A periodic tenancy is a tenancy that runs on a rolling basis — typically month by month or week by week — with no fixed end date. It continues indefinitely until either the landlord or the tenant brings it to an end through the correct legal process. (Source: Private renting guidance, GOV.UK.)

Under the current system, most private tenancies begin as fixed-term assured shorthold tenancies, usually for six or twelve months, and then roll into a statutory periodic tenancy when the fixed term ends if neither party takes action. Under the Renters' Rights Act 2025, the fixed-term stage is removed entirely. All tenancies will be periodic from the outset. (Source: Guide to the Renters' Rights Act, GOV.UK, published 6 November 2025.)

What happens to existing fixed-term tenancies?

On the implementation date for the Renters' Rights Act 2025, all existing fixed-term tenancies will convert to periodic tenancies. Landlords will not be able to serve new Section 21 notices or old-style Section 8 notices after that date. The government has confirmed that implementation will happen in a single stage, meaning all tenancies — new and existing — move to the new system at the same time. (Source: Guide to the Renters' Rights Act, GOV.UK.)

There will be no two-tier system of old fixed-term tenancies and new periodic tenancies running alongside each other. The government has stated that this single-stage approach is designed to give all tenants security immediately and to avoid confusion.

Leases with a fixed term of more than 21 years are removed from the assured tenancy system entirely. Long leasehold and Shared Ownership arrangements will not be part of the new framework. (Source: Guide to the Renters' Rights Act, GOV.UK.)

How does a tenant end a periodic tenancy?

Under the new system, a tenant may end a periodic tenancy at any time by giving two months' notice to the landlord. There is no minimum period the tenant must have been in the property before they can serve notice. (Source: Guide to the Renters' Rights Act, GOV.UK.)

This gives tenants more flexibility than the current system, where a tenant in a fixed-term tenancy is generally obliged to pay rent for the remainder of the fixed term even if they wish to leave.

How does a landlord end a periodic tenancy?

A landlord cannot end a periodic tenancy simply by giving notice. Under the new system, a landlord must establish one of the statutory grounds for possession under Schedule 2 of the Housing Act 1988, as amended by the Renters' Rights Act 2025, and serve a valid Section 8 notice specifying that ground. (Source: Guide to the Renters' Rights Act, GOV.UK.)

Section 21 no-fault eviction no longer exists. A landlord who wishes to recover their property must have a reason that falls within one of the statutory grounds. The most relevant grounds for landlords who need their property back for legitimate reasons include selling the property (Ground 1A) and the landlord or a family member moving in (Ground 1), both of which require four months' notice and cannot be used within the first 12 months of a tenancy.

What is the 12-month protected period?

The Renters' Rights Act 2025 introduces a 12-month protected period at the start of every tenancy. During this period, a landlord cannot use the selling or moving-in grounds to recover possession. This means that where a landlord lets a property and then wishes to sell or move in within the first year, they must wait until the protected period has expired before serving notice on those grounds. (Source: Guide to the Renters' Rights Act, GOV.UK.)

The protected period does not prevent a landlord from using other grounds — for example, grounds based on rent arrears, antisocial behaviour, or damage to the property can be used at any time.

How do rent increases work under periodic tenancies?

Under the new system, landlords may increase rent once per year to the market rate. All rent increases must be made using the Section 13 notice process. The landlord must serve a prescribed form giving at least two months' notice of the proposed new rent. (Source: Guide to the Renters' Rights Act, GOV.UK.)

Rent review clauses in tenancy agreements will no longer be a valid mechanism for increasing rent. All increases must go through the Section 13 process regardless of what a tenancy agreement says.

If a tenant believes the proposed increase exceeds the market rate, they may challenge it at the First-tier Tribunal. The Tribunal will determine the market rent. Under the new rules, the Tribunal cannot award a rent higher than the landlord originally proposed, and increases will not be backdated — they take effect from the date of the Tribunal determination. (Source: Guide to the Renters' Rights Act, GOV.UK.)

What about written tenancy agreements?

All tenancies will be required to have a written tenancy agreement under the new system. The agreement must contain specific information set out in secondary legislation. Landlords will not need to change or reissue existing written tenancy agreements at the point of conversion. Instead, they will be required to provide tenants with a government-produced information sheet explaining how the reforms may have affected the tenancy. (Source: Guide to the Renters' Rights Act, GOV.UK.)

For verbal tenancy agreements that were never written down, landlords will need to provide a written document covering the required information.

What this means for landlords

Fixed terms are gone. From the implementation date, every tenancy a landlord enters into will be periodic from day one, with no fixed end date. Landlords should not use tenancy agreement templates that include fixed-term clauses after the implementation date.

Possession requires a ground. There is no longer a backstop route to recover a property without reason. Every possession claim goes through Section 8. Landlords need to understand which grounds apply to their circumstances and what notice periods each ground requires.

Rent increases must follow the Section 13 process. Rent review clauses in agreements will have no effect under the new system. Landlords should remove them from their standard documents and set up a process for serving Section 13 notices when rent reviews are due.

The 12-month protected period applies to every new tenancy. Landlords who may need to sell or move back into a property within the first year of a new tenancy need to factor this into their planning.

Written tenancy agreements are now a legal requirement. Landlords who have relied on verbal agreements will need to provide a written document meeting the prescribed requirements.

This article is for informational purposes only and does not constitute legal advice.

Frequently asked questions

Are fixed-term tenancies still legal in England?

No. From 1 May 2026, the Renters' Rights Act 2025 abolished fixed-term assured tenancies in the private rented sector. All new tenancies must be periodic from day one, and existing fixed terms convert to periodic automatically.

Can a tenant leave at any time under a periodic tenancy?

Yes. Under a periodic tenancy, tenants can give two months' notice to end the tenancy at any time. There is no break clause or fixed-term lock-in.

How does a landlord end a periodic tenancy?

Landlords can only end a periodic tenancy by serving a Section 8 notice and proving one of the statutory grounds for possession, such as rent arrears, the landlord wanting to sell, or the landlord wanting to move back in. Section 21 no-fault eviction is no longer available.

This article is provided for informational purposes only and does not constitute legal advice. LLCR is a compliance management platform, not a law firm. For advice specific to your situation, consult a qualified solicitor.

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