Periodic Tenancies: The New Default Under the Renters' Rights Act
One of the most fundamental changes under the Renters’ Rights Act 2025 is this: fixed-term tenancies are abolished. From May 2026, all assured shorthold tenancies in England must be periodic.
This is a significant shift for landlords who have always used fixed-term agreements. Here is what periodic tenancies actually mean, what changes in practice, and how to adapt your approach.
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 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 notice or mutual agreement.
Many landlords have used periodic tenancies already — often as the natural rollover when a fixed term expired. Under the Renters’ Rights Act, this becomes the only option for all new tenancies and all existing ones.
Fixed Terms Are Abolished — What This Means
From May 2026:
- You cannot offer new fixed-term ASTs. Any agreement you sign must be periodic.
- Existing fixed-term tenancies automatically convert to periodic tenancies on the enforcement date, regardless of when they were signed.
- Fixed-term end dates become 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.
How Existing Tenancies Are Affected
If you have a fixed-term tenancy running when the Act comes into force in May 2026, it converts automatically on that date. Here is what happens:
| Scenario | What Happens |
|---|---|
| Fixed term running, no issues | Converts to periodic, tenant stays |
| Fixed term due to expire before May 2026 | Already expired — you can agree a new (periodic) tenancy or let them leave |
| Fixed term due to expire after May 2026 | End date becomes void, tenancy continues as periodic |
| Tenant in periodic tenancy already | No change — already compliant |
You do not need to reissue new agreements for existing tenancies that convert. The conversion happens automatically in law. You should, however, write to your tenants to confirm the change and update your records.
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 before they are allowed to start a notice to quit.
This means a tenant could theoretically sign up and give notice after a week. In practice, people move when they need to move. The tenant who gives 2 months’ notice after 2 months was going to leave anyway.
Landlords recovering possession
Without Section 21, you need a valid Section 8 ground to recover possession. The notice periods vary by ground:
| Ground | Reason | Notice Required |
|---|---|---|
| Ground 1 | Selling the property | 4 months |
| Ground 1A | Moving in yourself/family | 4 months |
| Ground 8 | 3+ months’ rent arrears | 4 weeks |
| Ground 14 | Anti-social behaviour | 2 weeks |
See the full Section 8 guide for all grounds and requirements.
What Changes in Day-to-Day Management
Rent increases
In a fixed-term tenancy, you could include a rent review clause that triggered at set intervals. That clause becomes void from May 2026. You can only increase rent using a Section 13 notice, once every 12 months, with 2 months’ written notice.
If you want to raise rent soon, do it before May 2026 using your existing rent review clause (if your agreement has one). After that date, Section 13 is the only route.
Early departures
Under a fixed-term AST, a tenant who left early was technically in breach of contract and liable for rent until a replacement was found. Under a periodic tenancy, there is no early departure — a tenant simply gives 2 months’ notice and leaves on the correct date.
This removes the complications (and the legal arguments) around early exits. Budget for the possibility of 2-month void periods as your baseline assumption.
Mid-term departures in HMOs
If you let an HMO with multiple tenants on individual agreements, each tenant on a periodic tenancy can give notice independently. Plan for this in your cash flow and re-letting strategy.
Will Periodic Tenancies Increase Tenant Turnover?
This is the concern most landlords raise. The evidence from countries where periodic-style tenancies are the norm (Germany, the Netherlands) is that turnover does not increase dramatically. Tenants move when they need to move — a fixed term rarely kept someone in a property they wanted to leave.
What does reduce turnover is good management, fair rents, and responsive maintenance. A tenant who is treated well and paying a market rate has very little reason to leave.
The landlords who will see more turnover are those who used fixed terms to keep unhappy tenants locked in. That is no longer possible — and arguably, it shouldn’t have been.
Updating Your Tenancy Agreement
Your current fixed-term AST template will need updating before May 2026. Key changes:
- Remove the fixed term end date — replace with periodic rolling terms
- Remove any early exit or break clause penalties
- Remove any rent review clauses — replace with reference to Section 13 process
- Update the notice provisions — 2 months for tenants, Section 8 grounds for landlords
The free tenancy agreement template on this site is updated to reflect the current law. Use the current version for any new tenancies.
What To Do Now
Before May 2026:
- Identify all tenancies with fixed-term end dates after May 2026
- Write to those tenants explaining the conversion — it avoids confusion later
- Update your tenancy agreement template
- Remove rent review clauses and schedule your Section 13 notice process
- If you need possession of any property, consider whether Section 8 grounds exist now
After May 2026:
- Use only periodic agreements for all new tenancies
- Use Section 13 for all rent increases
- Use Section 8 for all possession claims
- Keep records of everything in writing
Periodic tenancies are not a threat to your business if you run it properly. They are simply a different — and in many ways simpler — way of managing the relationship with your tenants.
Related guides:
Frequently Asked Questions
What is a periodic tenancy?
A periodic tenancy has no fixed end date. It rolls on indefinitely — usually month to month — until either the landlord or tenant gives valid notice to end it. From May 2026, all assured shorthold tenancies in England will be periodic by law.
Are fixed-term tenancies being abolished?
Yes. Under the Renters' Rights Act 2025, fixed-term assured shorthold tenancies are abolished from May 2026. New tenancies cannot be offered on fixed terms, and existing fixed-term tenancies automatically convert to periodic tenancies on the enforcement date.
How much notice can a tenant give on a periodic tenancy?
Tenants must give 2 months' written notice to end a periodic tenancy. They can give notice at any point during the tenancy — there is no minimum period before they can leave.
Can a landlord end a periodic tenancy?
Only using valid Section 8 grounds. Without a Section 21 notice, landlords must have a legally recognised reason to end a tenancy — such as rent arrears, anti-social behaviour, wanting to sell, or wanting to move in.
Does the change to periodic tenancies apply to existing tenancies?
Yes. All existing assured shorthold tenancies automatically convert to periodic tenancies on the May 2026 enforcement date, regardless of when they started or what their fixed term says.