Periodic Tenancy 2026: Complete Renters' Rights Act Guide

The Renters’ Rights Act 2025 came into force in May 2026. Fixed-term tenancies are abolished. All assured shorthold tenancies in England are now periodic — and that includes every existing tenancy that was still running when the Act commenced.

This is the most fundamental change to residential tenancy law in a generation. Landlords who relied on the end of a fixed term to recover possession, review rent, or replace tenants need to rethink their approach. The good news is that periodic tenancies are simpler to manage than the fixed-term model in most respects — once you understand the rules.

This guide covers what periodic tenancies mean in practice: how notice works, how you raise rent legally, how you recover possession, what happened to your existing tenancies, and the specific scenarios that need planning. For the broader context of when this change and other provisions came into force, see the Renters’ Rights Act timeline.

What Is a Periodic Tenancy?

A periodic tenancy is an open-ended agreement that runs indefinitely — rolling from one period to the next (usually month to month) until either party gives valid written notice to end it.

There is no end date. There is no expiry. The tenancy continues for as long as both parties want it to, and can only end by valid notice or mutual agreement.

Many landlords already used periodic tenancies as the natural rollover when a fixed term expired without a new agreement being signed. Under the Renters’ Rights Act, this is now the only permitted form of assured shorthold tenancy in England. There is no longer any choice in the matter.

Fixed Terms Are Abolished

From May 2026:

• You cannot offer new fixed-term ASTs. Any new agreement must be periodic from the start.
• Existing fixed-term tenancies automatically converted to periodic tenancies on the enforcement date, regardless of when they were signed or what fixed term they stated.
• Fixed-term end dates are legally meaningless — you cannot rely on a term ending to recover possession.

This applies to all assured shorthold tenancies in England. There is no opt-out, no exception for landlords who prefer fixed terms, and no transitional arrangement for tenancies already running.

How Existing Tenancies Were Affected

If you had a fixed-term tenancy running when the Act came into force, it converted automatically. Here is what happened:

Scenario	What Happened
Fixed term running, no issues	Converted to periodic; tenant stays
Fixed term expired before May 2026	Already expired — any new tenancy must be periodic
Fixed term due to expire after May 2026	End date became legally void; tenancy continues as periodic
Tenant already on periodic tenancy	No change — already compliant

You did not need to reissue new agreements for tenancies that converted. The conversion happened automatically in law on the commencement date. You should, however, write to your tenants to confirm the change and update your own records to reflect that all terms are now periodic.

Notice Periods Under Periodic Tenancies

Tenants giving notice

Tenants must give 2 months’ written notice to leave a periodic tenancy. They can give this notice at any point — there is no minimum period they must wait. Notice must be in writing (email is sufficient) and specify a valid end date, typically the last day before the next rent payment falls due.

Landlords recovering possession

Without Section 21, you need a valid Section 8 ground under the Housing Act 1988. The notice periods vary by ground:

Ground	Reason	Notice Required
Ground 1	Selling the property	4 months
Ground 1A	Moving in yourself or close family	4 months
Ground 7A	Serious anti-social behaviour	4 weeks
Ground 8	At least 3 months’ rent arrears	4 weeks
Ground 14	Anti-social behaviour (general)	2 weeks
Ground 12	Breach of tenancy terms	2 weeks

See the full Section 8 guide for all 20 grounds, their requirements, and whether they are mandatory or discretionary.

Setting the Starting Rent

You can charge any market rent when a new periodic tenancy starts. The initial rent is a matter of agreement between you and the tenant — there is no statutory cap on starting rent in the private rented sector (except where a local authority rent control applies, which currently does not exist in England).

However, once the tenancy starts, you cannot increase rent except through the formal Section 13 process. This has an important practical implication: getting the starting rent right matters more than it did under fixed-term agreements, because you cannot quietly adjust it mid-tenancy. If you underprice at the start, you are locked to that figure until you go through the formal notice process.

If you have a tenancy that recently converted from a fixed term, and the rent is below current market rate, you can serve a Section 13 notice immediately — subject to the 12-month rule if there has been a previous increase.

Raising Rent: Section 13 Is the Only Legal Route

The Housing Act 1988 s.13 sets out the only mechanism for increasing rent on a periodic tenancy where the tenant has not voluntarily agreed to pay more. The Renters’ Rights Act 2025 amended the procedure in two material ways: rent can only increase once per 12 months, and the minimum notice period is now 2 months for all periodic assured tenancies (up from 1 month for monthly tenancies under the old rules).

Any rent review clause in an existing tenancy agreement is legally void from May 2026. You cannot contractually compel a rent increase — Form 4 is the only route for any increase the tenant does not accept voluntarily.

The Section 13 process:

1. Download Form 4 — the prescribed Notice of Increase in Rent for Assured Periodic Tenancies, available from gov.uk. Download a fresh copy for each notice; using an outdated version invalidates the notice.
2. Give at least 2 months’ notice — measured from the date of service to the proposed effective date.
3. Set the effective date on the first day of a rental period — if rent is due on the 1st, the new rent must start on the 1st of a month.
4. Serve correctly — hand deliver, first class post (allowing 2 additional working days), or by email if you have written agreement to email service.
5. Observe the 12-month rule — you cannot increase rent more than once every 12 months, measured from the effective date of the last increase.

The tenant can refer the proposed increase to the First-tier Tribunal (Property Chamber) before the effective date if they consider it above market rate. The Tribunal will set a market rent — which may be higher, lower, or the same as your proposal.

For the full process including how to serve correctly, avoid the five most common errors, and deal with a Tribunal referral, see the Section 13 rent increase guide.

What Changes in Day-to-Day Management

Rent increases

Any rent review clause from a previous fixed-term agreement is now void. Section 13 is the only route, for every landlord, for every periodic tenancy. Plan your rent review calendar now — note the 12-month anniversary of each tenancy start (or last increase) and diarise when to serve Form 4 if you want an increase.

Early departures

Under a fixed-term AST, a tenant who left early was technically in breach and liable for rent until a replacement was found or the term ended. Under a periodic tenancy, there is no “early departure” — a tenant who gives 2 months’ notice and leaves on the correct date has done everything right.

Build a 2-month void period into your yield calculations as a baseline. If you want to reduce void periods, invest in the relationship: tenants who are happy with their landlord and paying a fair rent have very little reason to move.

Mid-term departures in HMOs

If you let an HMO with multiple tenants on individual agreements, each tenant can give notice independently. Plan your re-letting strategy room by room, not property by property. One departure does not affect the other tenants.

Tenancy Deposit Protection: No Change

The standard tenancy deposit rules apply in full to periodic tenancies. You must protect the deposit in a government-approved scheme within 30 days of receipt and serve the prescribed information on the tenant. This obligation does not change under periodic tenancies.

At the end of the tenancy — however it ends — the deposit is returned less any legitimate, evidenced deductions. Disputes go through the scheme’s Alternative Dispute Resolution process. Keep your check-in inventory and condition photographs: these are your evidence if a deposit dispute arises.

Periodic Tenancies and Your Buy-to-Let Mortgage

Periodic tenancies are still assured shorthold tenancies under the Housing Act 1988. They are not a new type of agreement — they are ASTs without a fixed end date.

Most buy-to-let mortgage conditions require the property to be let on an AST. A periodic AST satisfies this requirement in full.

However, some older BTL mortgage terms specify a “minimum 6-month fixed term” or similar language. If your mortgage has this wording, check with your lender directly. Most lenders have updated their conditions to accept periodic tenancies under the Renters’ Rights Act, but confirming in writing protects you if there is ever a question.

If you are remortgaging or taking out a new BTL mortgage, confirm with the lender that periodic tenancies are acceptable before you commit.

Student Lets: The Key Exception That Does Not Apply to Most Landlords

The Housing Act 1988 Schedule 1 contains an exemption for certain student lettings. Some landlords hoped this would allow them to keep fixed-term agreements for academic-year lets.

The exemption is narrowly drawn. It applies only to tenancies granted by specified educational establishments — universities and institutions listed in the legislation. Private landlords who let to students do not qualify, regardless of whether their tenants are students.

If you are a private landlord renting to students, you must use periodic tenancies. The September-to-July academic year model — based on a fixed term that ended in the summer — no longer functions as it did. Plan for tenants who give notice mid-academic year and structure your marketing to fill rooms on a rolling basis.

Will Periodic Tenancies Increase Turnover?

This is the concern most landlords raise. The evidence from comparable markets — Scotland has had similar rules under the Private Residential Tenancy since 2017, as do Germany and the Netherlands — is that turnover does not increase materially. Tenants move when they need to move, and a fixed term rarely kept someone in a property they genuinely wanted to leave.

What does reduce turnover is good management: fair rents, responsive maintenance, and clear communication. A tenant who is treated well and paying a market rent has very little reason to move.

The Landlord Ombudsman scheme — also mandatory from May 2026 — reinforces this point: the accountability framework is tightening across the board. Landlords who manage their properties well and communicate clearly will find the new system manageable. Those who relied on legal mechanisms to manage unhappy tenants will find it harder.

Updating Your Tenancy Agreement

Your fixed-term AST template needs updating before it is used for any new tenancy. Key changes:

1. Remove the fixed term end date — replace with periodic rolling terms
2. Remove early exit or break clause penalties — these are void
3. Remove any rent review clauses — void from May 2026; replace with a reference to the Section 13 process
4. Update the notice provisions — 2 months for tenants; Section 8 grounds for landlords
5. Update the pets clause — blanket no-pets clauses are unenforceable; replace with a reasonable consent process under the new pets rules

The free tenancy agreement template on this site is updated to reflect the current law. Use the current version for any new tenancy from May 2026 onwards.

Common Misconceptions

“Tenants can just leave whenever they want now.” No. Tenants must give 2 months’ written notice. Walking out without proper notice is a breach of the tenancy. The landlord can pursue unpaid rent through the courts.

“Landlords have no security of income under periodic tenancies.” Section 8 provides 20 grounds for possession, including mandatory grounds for rent arrears and anti-social behaviour. Responsible management of the tenancy reduces the risk of reaching that point significantly.

“I needed to reissue new tenancy agreements when my fixed-term converted.” No. The conversion was automatic by operation of law on the May 2026 commencement date. You should write to your tenants explaining the change, but no new signed agreement is legally required for the periodic tenancy to be valid.

“I can still offer fixed-term tenancies as an incentive or for a premium.” No. An agreement that purports to create a fixed-term AST is treated as periodic in law. Any clause purporting to charge a penalty for “early departure” before a stated end date is void and unenforceable.

“My fixed-term tenancy still has 8 months left — I’m fine until then.” From the May 2026 enforcement date, that fixed term became void. The tenancy is already periodic. Any plans you had to rely on the term end for possession or rent review no longer apply.

---

Related guides:

• Renters’ Rights Act: complete guide for landlords
• End of Section 21: what replaces no-fault eviction
• How to raise rent in 2026: the Section 13 process
• Section 8 notice: all grounds and notice periods
• Landlord Ombudsman scheme: what you need to know