The Renters’ Rights Act 2025 introduces significant changes to the rental landscape in England, with one of the most notable being the abolition of fixed-term tenancies from 1 May 2026. This shift will have profound implications for both tenants and landlords, altering the traditional understanding of tenancy agreements and the security they provide.

The end of fixed-term tenancies

Fixed-term tenancies, which have long been the norm in the private rented sector, will no longer be lawful after 1 May 2026. Instead, all new tenancies will automatically become periodic, rolling on a month-by-month basis. This change is likely to cause confusion, as many tenants and landlords are unfamiliar with periodic tenancies, despite their longstanding presence in law.

Historically, fixed terms have offered tenants a degree of security, allowing them to commit to a property for a set period. This was particularly important for families wanting stability during their children’s schooling. The removal of fixed terms means tenants will no longer be able to negotiate such long-term security, which may come as a shock to those expecting to remain in their homes for a defined period.

Implications for tenants

While the loss of fixed terms reduces security for tenants in some respects, it also grants them greater flexibility. Previously, tenants who signed a fixed-term contract were often bound to remain and pay rent even if the property proved unsuitable or their circumstances changed. For example, tenants discovering damp or mould issues after moving in had little recourse to end their tenancy early without the landlord’s consent.

Similarly, tenants needing to relocate for work faced difficulties breaking fixed-term agreements, sometimes at the cost of career opportunities. The new system allows tenants to serve notice and leave without penalty, providing relief in such situations. However, this flexibility may also lead to increased turnover and uncertainty for landlords.

Challenges for student landlords

Student landlords are expected to face particular difficulties due to these changes. Tenants will be able to serve a two-month Notice to Quit from the start of their tenancy, potentially leaving landlords scrambling to find replacements mid-academic year. For instance, a student deciding to abandon their studies for voluntary work abroad could legally terminate their tenancy early.

Moreover, if a joint tenant gives notice, it may jeopardise the entire tenancy. Landlords might respond by ending the tenancy for all occupants and re-letting to different tenants, such as families, to avoid the unpredictability associated with student renters. This is legally permissible and may lead to increased instability in student housing.

What this means for landlords

From 1 May 2026, landlords must ensure that tenancy agreements do not include fixed terms, as doing so will breach the new regulations. Such breaches can result in fines of up to £7,000, with a government-recommended starting point of £4,000. Local authorities will be tasked with enforcing these rules and will find it straightforward to prove violations through tenancy agreements containing fixed terms.

Landlords must therefore review and update their tenancy documentation to comply with the new legal requirements. Additionally, tenancy agreements will need to incorporate all mandatory information stipulated by the Act. Professional tenancy agreements, such as those provided by Landlord Law, have been updated to reflect these changes and offer compliance support.

Despite these clear requirements, awareness of the Renters’ Rights Act remains limited. A recent Pegasus Insight report revealed that approximately 25% of private landlords are unaware of the new legislation. Given that ignorance of the law is no defence, landlords failing to comply may face costly penalties.

These reforms mark a significant departure from traditional rental practices, demanding that landlords adapt swiftly to the evolving legal framework. While tenants gain flexibility, landlords must prepare for increased administrative responsibilities and potential challenges in managing tenancies.

Source: Based on reporting from The Landlord Law Blog

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