All Tenancies Become Periodic: What This Means for Landlords and Tenants (2025–2026 Guide)

All Tenancies Become Periodic: What This Means for Landlords and Tenants (2025–2026 Guide)

A complete legal guide to the end of fixed-term assured shorthold tenancies and the move to a single periodic tenancy system under the Renters’ Rights Act 2025.

 

Introduction: The End of the Fixed-Term Era

For decades, the private rental market operated on a familiar structure:

  • 6-month or 12-month fixed-term assured shorthold tenancies (ASTs)
  • Automatic expiry at the end of the term
  • Section 21 used to recover possession if required

The Renters’ Rights Act 2025 fundamentally changes this framework.

Under the new regime, most tenancies will become periodic by default.

This is one of the most significant structural reforms in modern housing law.

This guide explains:

  • What “periodic” now means
  • What happens to fixed terms
  • How notice works
  • What landlords lose and retain
  • What tenants gain and must understand
  • Strategic implications for both sides

 

What Does “All Tenancies Become Periodic” Actually Mean?

Under the new system:

  • Tenancies will not end automatically at a fixed date.
  • They will continue on a rolling basis (typically monthly).
  • Either party must give notice to end the tenancy.
  • Landlords must rely on statutory possession grounds.

In practical terms: There is no longer an automatic right to recover possession simply because a fixed term expires.

 

What Is a Periodic Tenancy?

A periodic tenancy runs:

  • From rental period to rental period
  • Typically month-to-month
  • Without a fixed end date

It continues until:

  • The tenant gives valid notice; or
  • The landlord obtains possession via statutory grounds.

The tenancy does not “expire” in the traditional sense.

 

Why Has This Change Been Introduced?

The government’s stated aims include:

  • Increasing tenant security
  • Removing “no-fault” eviction leverage
  • Simplifying tenancy structures
  • Creating consistency across the sector

The reform is closely linked to the abolition of Section 21. The two changes operate together.

Periodic Tenancy Agreement - rolling tenancy structure under the Renters' Rights Act 2025

What Happens to Existing Fixed-Term Tenancies?

During the transitional phase:

  • Existing tenancies may continue temporarily under prior terms.
  • Over time, they will convert into the new periodic framework.

Landlords should assume that long-term planning must reflect:

  • No automatic end-of-term possession
  • Reliance on statutory grounds
  • Increased compliance expectations

Waiting for expiry as a strategy is no longer viable.

 

What This Means for Landlords

1. No Automatic End-of-Term Possession

Previously, landlords could:

  • Wait for the fixed term to end
  • Serve Section 21
  • Regain possession

That model disappears. Possession must now be justified under Section 8 grounds.

2. Greater Importance of Compliance

Landlords must ensure:

  • Deposit protection is correct
  • Prescribed information served
  • Gas safety certificates valid
  • EPC provided
  • HMO licensing compliant
  • Repair obligations met

Possession claims are more evidence-driven.

3. Reduced Certainty Around Timing

Without fixed terms:

  • Turnover planning becomes less predictable
  • Academic year alignment (for student lets) requires strategy
  • Sale planning must consider possession timelines

Landlords must adapt operational planning accordingly.

 

What This Means for Tenants

1. Increased Security

Tenants no longer face automatic eviction at the end of a fixed term. They may remain in occupation unless:

  • They choose to leave; or
  • A valid statutory ground applies.

2. Flexibility to Leave

Tenants may:

  • Serve notice in accordance with statutory rules
  • Leave without being locked into long fixed commitments

This benefits mobility.

3. Responsibility Remains

Periodic status does not remove tenant obligations. Tenants must still:

  • Pay rent
  • Avoid antisocial behaviour
  • Maintain property responsibly
  • Comply with tenancy terms

Ground-based eviction still applies.

 

How Notice Works in a Periodic System

Tenant Notice

Tenants must:

  • Give proper notice (typically one month)
  • Align notice with rental period

Improper notice may not be valid.

Landlord Notice

Landlords must:

  • Serve a Section 8 notice
  • Rely on a valid statutory ground
  • Provide correct notice period

There is no “end-of-term” shortcut.

 

Strategic Implications for the Market

This reform changes landlord behaviour in several ways:

  • Increased emphasis on tenant screening
  • Greater reliance on guarantors
  • More careful arrears monitoring
  • Structured rent review planning
  • Professional property management

The market is moving towards professionalisation.

 

Does This Mean Fixed Terms Are Completely Gone?

In practical effect, the system moves toward:

  • A single tenancy model
  • Rolling occupation
  • Statutory grounds-based possession

While tenancy agreements may still reference periods of commitment, the automatic expiry leverage disappears.

 

What Judges Will Consider in the New Periodic Era

Courts will focus on:

  • Whether statutory grounds are satisfied
  • Whether notice is compliant
  • Whether procedural requirements are met
  • Whether landlord conduct has been reasonable

The absence of a fixed term makes evidential preparation more important.

 

Common Landlord Misunderstandings

  • “I can just not renew”  Not under the new system.
  • “I can increase rent instead” Must follow Section 13 procedure.
  • “I’ll just wait until term ends” – The tenancy does not automatically end.
  • “Students are exempt” Most are not.

Legal assumptions must now be updated.

 

How This Interacts With Other Reforms

The move to periodic tenancies works alongside:

These reforms form a coherent regulatory shift.

 

Frequently Asked Questions

Can landlords still agree 12-month contracts?
The tenancy may reference time periods, but the underlying statutory framework moves toward periodic security.

Can a landlord force a tenant to sign a new agreement?
Not without statutory basis.

Can tenants leave at any time?
They must provide proper notice.

Is being a landlord now too risky?
Landlord rights remain,  but are exercised through statutory grounds rather than expiry.

 

Conclusion: A Structural Reform, Not a Loss of Rights

The move to periodic tenancies represents:

  • A shift from expiry-based control
  • To ground-based regulation

Landlords retain:

  • Right to recover possession
  • Right to increase rent lawfully
  • Right to enforce tenancy obligations

But strategy must now be:

  • Evidence-led
  • Compliance-focused
  • Legally structured

Adaptation is key.

 

Speak to a Housing Law Specialist

If you are:

  • Reviewing tenancy structures
  • Unsure how periodic conversion affects you
  • Planning possession
  • Managing a portfolio transition

Knights & Shah Solicitors advise landlords and tenants nationwide on the practical implementation of the Renters’ Rights Act 2025.

Contact our housing law team for tailored guidance.

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