Summary: The Renters’ Rights Act 2025 introduces a fundamental change to the private rental sector in England by abolishing fixed-term Assured Shorthold Tenancies (ASTs). From the implementation date, all new tenancies will be periodic by default, creating open-ended agreements that continue until terminated by either party.

Renters’ Rights Act 2025: End of Fixed-Term Assured Shorthold Tenancies

The government’s Renters’ Rights Act 2025 marks a significant shift in the private rental market by abolishing fixed-term Assured Shorthold Tenancies (ASTs) in England. Section 4A of the Act specifically ends the ability for landlords to grant tenancies with a fixed duration, such as six or twelve months. Instead, all new tenancies will automatically be periodic, rolling on a monthly or weekly basis depending on the rent payment frequency.

1. Fixed-Term Tenancies Are No Longer Permitted

Under the new legislation, landlords cannot create tenancy agreements with a fixed term. Any clause attempting to establish a fixed-term tenancy will be legally disregarded, and the tenancy will default to a periodic arrangement. This means that the traditional six-month or one-year tenancy will no longer exist for new agreements. Instead, tenancies will continue indefinitely until either the landlord or tenant serves notice to end the agreement.

2. Tenancy Period Aligns with Rent Payment Frequency

The Act ties the tenancy period directly to the rent payment schedule. If rent is paid monthly, the tenancy period is one month; if rent is paid weekly, the tenancy period is seven days. This change prohibits landlords from setting rent periods longer than one month, such as quarterly or biannual payments. The legislation effectively caps the rent period at a maximum of one month to ensure consistency and clarity in tenancy arrangements.

3. Consequences of Non-Compliant Tenancy Terms

If a landlord’s tenancy agreement includes a fixed term or a rent period that does not comply with the new rules—such as quarterly rent payments—the law automatically converts the tenancy to a compliant periodic tenancy. For example, a tenancy with rent set at £900 every three months would be treated as a monthly tenancy with rent adjusted proportionally to £300 per month. This ensures that all tenancies conform to the new framework without invalidating the agreement entirely.

4. Flexibility to Adjust Rent Frequency

Despite the abolition of fixed terms, landlords and tenants retain the flexibility to vary the rent payment frequency by mutual agreement. Changes from weekly to monthly rent payments, or vice versa, remain possible provided the new rent period does not exceed one month. Other terms such as rent amount and payment dates can also be varied through agreement, maintaining some adaptability within the new system.

5. Wider Implications: The Move to Indefinite Tenancies

The abolition of fixed-term ASTs forms part of broader reforms, including the removal of Section 21 “no-fault” eviction notices. Landlords will no longer be able to regain possession simply by waiting for a fixed term to end. Instead, possession must be sought using specific grounds such as selling the property, moving back in, rent arrears, breach of tenancy, or serious antisocial behaviour. This shift aligns England’s rental system more closely with models found in much of Europe, favouring open-ended tenancies that provide greater security for tenants.

Implementation Timeline and Preparation for Landlords

Although the Renters’ Rights Act 2025 has received Royal Assent, the changes abolishing fixed-term ASTs will not come into force immediately. The government will set the commencement date through secondary legislation, with current indications suggesting the reforms will take effect no earlier than spring 2026. At least six months’ notice will be provided before implementation.

Landlords should begin preparing for this transition by reviewing tenancy agreement templates, updating internal systems, and planning for the move to open-ended periodic tenancies. Staying informed and adapting early will help landlords manage the changes smoothly and maintain compliance with the new legal framework.

Further Support for Landlords

Landlords and letting agents seeking guidance on these changes can access specialist legal advice tailored to landlord–tenant law. Expert support is available to assist with tenancy agreements, eviction procedures, and compliance with the new legislation.

For more information and resources on adapting to the Renters’ Rights Act 2025, visit Landlord Association.