Periodic Tenancies Explained: What Landlords Need to Know Under the New Rules

The End of the Fixed Term

Under the Renters' Rights Act 2025, all new assured tenancies in England created after 1 May 2026 will be periodic from the outset. There will be no more fixed-term assured shorthold tenancies. Existing fixed terms that are still running on that date will be allowed to expire naturally, at which point they too become periodic tenancies under the new regime.

This is one of the most fundamental changes the Act introduces, and it affects virtually every aspect of how you manage a tenancy — from how long tenants stay to how you increase rent and how you recover your property.

A periodic tenancy is not a weaker tenancy — it is a different structure. Once you understand how it works, you can manage it just as effectively as a fixed term.

What Is a Periodic Tenancy?

A periodic tenancy is one that rolls from period to period — typically month to month — without a fixed end date. It continues indefinitely until either the landlord or the tenant takes steps to end it in accordance with the law.

Under the current system, most private tenancies start with a fixed term (usually 6 or 12 months) and then roll into a statutory periodic tenancy if neither party takes action at the end of the fixed term. Under the new system, every tenancy starts as periodic. There is no initial fixed term at all.

Key Characteristics

• The tenancy has no set end date
• It rolls on a monthly basis (or whatever period rent is payable)
• The tenant can end the tenancy by giving two months' notice at any time
• The landlord can only end the tenancy by using a valid ground for possession under the reformed Section 8

What This Means for Tenant Turnover

The most immediate concern for many landlords is the possibility that tenants will leave at short notice, creating unexpected void periods. Under a fixed term, you had the comfort of knowing the tenant was committed for 6 or 12 months. Under a periodic tenancy, the tenant can serve notice to leave after just two months.

In practice, this concern is often overstated. Most tenants do not move frequently — moving is expensive, disruptive, and stressful. The majority of tenants will stay for as long as the property meets their needs, regardless of whether the tenancy is fixed or periodic.

That said, landlords who operate in areas with high student populations or transient workforces may see more frequent turnover. Factoring a realistic void rate into your financial planning is always prudent.

How Rent Increases Work Under Periodic Tenancies

With no fixed term to anchor a rent review date, rent increases for private landlords in England must follow the statutory process set out in Section 13 of the Housing Act 1988, as reformed by the Renters' Rights Act. Our guide to Section 13 rent increase notices covers the process in detail.

The key rules:

• Rent can only be increased once per year
• The landlord must serve a Section 13 notice giving at least two months' notice of the proposed increase
• The proposed rent must be the market rent for the property — not an arbitrary figure
• The tenant can challenge the proposed rent by applying to the First-tier Tribunal, which will determine the market rent

What Happens If the Tenant Challenges the Increase?

If the tenant refers the proposed increase to the Tribunal, the Tribunal will assess the market rent for the property — taking into account comparable properties in the area, the condition of the property, and other relevant factors. The Tribunal's determination is binding.

Importantly, the Tribunal cannot set the rent higher than the amount you proposed. So there is no risk of the Tribunal increasing the rent beyond your original figure — but it may reduce it.

Updating Your Tenancy Agreements

Your existing tenancy agreements were likely drafted for the AST regime, with clauses relating to fixed terms, break clauses, and end-of-term procedures. These will need updating.

1. Remove fixed-term provisions. Any clause specifying a fixed term of 6 or 12 months is no longer applicable. The tenancy is periodic from day one.
2. Remove break clauses. These are redundant in a periodic tenancy. The tenant can leave with two months' notice at any time.
3. Update rent review provisions. Replace any contractual rent review mechanism with a reference to the Section 13 statutory process.
4. Review notice provisions. Ensure the agreement accurately reflects the notice periods for both tenant and landlord under the new regime.
5. Check for prohibited terms. The Renters' Rights Act prohibits certain clauses, including those that require tenants to pay more than the capped deposit or that restrict pets without reasonable justification.

The 12-Month Protected Period

Although the tenancy is periodic, the Renters' Rights Act introduces a 12-month protected period at the start of every tenancy. During this period, landlords cannot use Ground 1 (sale or moving in) or Ground 1A to seek possession.

This provides tenants with a degree of initial security similar to what a fixed term offered — while preserving the landlord's ability to use other grounds (such as rent arrears or antisocial behaviour) from the very beginning.

Can You Still Offer Longer-Term Stability?

Yes. Nothing prevents you from informally agreeing with a tenant that you both intend the tenancy to last for a particular period. However, this cannot be legally enforced as a fixed term. The tenant retains the right to leave with two months' notice, and you can only seek possession using the statutory grounds.

Some landlords may find that tenants value the flexibility of a periodic tenancy. For others, particularly those with strong tenant relationships, the practical experience may be very similar to the current system — the tenancy simply continues month to month with no fixed end date, which is exactly what happens now when a fixed term rolls into a statutory periodic tenancy.

Practical Implications

• Financial planning. Build a void allowance into your cash flow projections. Two to four weeks per year is a reasonable assumption for most properties
• Property maintenance. Tenants who can leave at any time are more likely to stay if the property is well maintained. Invest in responsive repairs and periodic upgrades
• Tenant communication. A good relationship with your tenant is your best asset. Regular, respectful communication reduces the chance of sudden departures and makes it easier to resolve issues before they escalate
• Record keeping. With rent increases following the Section 13 process, you need to keep clear records of every notice served, every response received, and every Tribunal determination

This Is Not as Dramatic as It Sounds

The shift to periodic tenancies sounds radical, but for many landlords, the practical impact will be modest. If your tenants are happy and your property is well managed, they will stay — just as they do now when a fixed term ends and the tenancy becomes periodic.

The key difference is that the framework for rental properties in England is now uniform and statutory. Understand it, work within it, and you will continue to operate a successful letting business. Keeping on top of deposit protection and landlord registration are equally important parts of the new compliance picture.

Further Reading

• Section 13 Rent Increase Notice: New Rules Explained
• How to End a Tenancy After Section 21 Is Abolished
• Renters' Rights Act Timeline and Key Dates