From Fixed-Term to Rolling Tenancies: Understanding the New Assured Periodic Tenancy System
The Renters’ Rights Act 2025 introduces a fundamental change to tenancy agreements in England by replacing fixed-term assured shorthold tenancies (ASTs) with rolling assured periodic tenancies. This reform aims to provide tenants with greater security while requiring landlords to adjust their approach to tenancy management and possession procedures.
Overview of the Change: Moving Away from Fixed-Term ASTs
Historically, landlords have commonly used fixed-term ASTs, typically lasting six or twelve months, under the Housing Act 1988. These agreements provided landlords with certainty, including the ability to regain possession at the end of the term using a Section 21 notice, often referred to as the “no-fault” eviction route.
However, the Renters’ Rights Act 2025 abolishes fixed-term ASTs entirely, introducing instead the Assured Periodic Tenancy. This new tenancy type is open-ended and continues indefinitely until either the tenant or landlord lawfully ends it. New tenancies created after the commencement date will automatically be rolling agreements with no fixed end date.
Tenants will retain the right to leave by giving appropriate notice, while landlords can only regain possession on specific statutory grounds outlined in Section 8 of the Housing Act, such as rent arrears, breach of tenancy terms, or sale of the property. This change aims to balance tenant security with landlords’ legitimate rights to recover possession when necessary.
Implications for Landlords: Notice Periods, Possession Rights and Rent Reviews
The introduction of assured periodic tenancies significantly alters the legal landscape for landlords:
- Tenant Notice Periods: Tenants will generally be required to provide at least two months’ notice before ending the tenancy, although the exact notice period may be confirmed in forthcoming regulations. This flexibility benefits tenants but may reduce landlords’ ability to plan for vacancies.
- Landlord Possession Rights: The abolition of Section 21 means landlords must rely solely on Section 8 grounds to regain possession. Each ground requires evidence, such as proof of persistent rent arrears or a genuine intention to sell. Notice periods for possession vary from two weeks to two months depending on the reason.
- Rent Reviews: Without fixed terms, landlords must follow the statutory Section 13 procedure for rent increases, ensuring transparency and fairness. Landlords are advised to review tenancy agreements to remove outdated references to “fixed terms” and “renewal periods.”
- Possession Proceedings: Landlords should prepare for increased reliance on court proceedings to regain possession, as tenants may challenge notices more readily. The government intends to digitise parts of the court process to reduce delays, but landlords should anticipate longer timelines than under the previous system.
Implementation Timeline: Expected in 2026
Although the Renters’ Rights Act 2025 has received Royal Assent, the assured periodic tenancy system will come into force in 2026, with the exact date to be set by commencement regulations. The government plans a phased implementation:
- Stage One: All new tenancies created after the commencement date will be assured periodic tenancies by default.
- Stage Two: Existing fixed-term ASTs will convert to periodic tenancies after a transitional period, giving landlords time to update documentation and systems.
The Department for Levelling Up, Housing and Communities (DLUHC) will issue official guidance and model documents ahead of the change. Landlords should continue using compliant AST templates until then but prepare to transition swiftly once regulations are announced.
Pending Documents and Guidance
Full implementation depends on several key documents yet to be published by the government, which will clarify the transition process and ensure consistency across the private rented sector. These include:
- DLUHC Transition Guidance: Details on when and how fixed-term agreements convert to periodic tenancies.
- Model Tenancy Statements: Prescribed forms outlining key terms, rent review procedures, and notice requirements.
- Landlord Information Sheets: Summaries landlords must provide tenants at the start of a tenancy to promote transparency.
- Updated Possession Grounds Handbook: Comprehensive details on statutory grounds under the revised Section 8 process.
The British Landlords Association (BLA) will provide members with early access and analysis of these materials to support compliance.
Preparing for the Transition: A Landlord’s Checklist
To ensure a smooth transition to the assured periodic tenancy system, landlords should consider the following steps:
- Audit Existing Tenancies: Identify all fixed-term ASTs and plan for their conversion when regulations take effect.
- Update Agreement Templates: Remove clauses referencing “renewal,” “end of term,” and Section 21 notices.
- Train Staff and Agents: Ensure teams understand the new possession grounds and notice requirements under Section 8.
- Enhance Record-Keeping: Maintain accurate rent statements, inspection records, and communication logs to support any possession claims.
- Review Insurance Policies: Confirm that landlord insurance covers legal costs associated with the new possession procedures.
- Communicate with Tenants: Keep tenants informed about changes to tenancy arrangements to foster trust and reduce disputes.
- Stay Updated: Engage with the BLA for ongoing updates, model documents, and training resources.
Proactive preparation will help landlords avoid disruption and maintain effective management under the new system.
Frequently Asked Questions
- What is an assured periodic tenancy?
- It is a new tenancy type replacing fixed-term ASTs, continuing indefinitely until ended by lawful notice from either party.
- Can landlords still offer fixed-term agreements of six or twelve months?
- No. From the commencement date, all new tenancies will be open-ended. However, rent reviews can still be scheduled annually.
- When will the change take effect?
- The assured periodic tenancy system is expected to come into force in 2026, with the exact date confirmed by regulations.
- Do tenants need to give notice to leave?
- Yes. Tenants must provide proper notice, likely two months, before ending the tenancy.
- What happens to existing fixed-term tenants?
- They will transition to periodic tenancies after a transitional period. Guidance will be provided by the government and the BLA.
Conclusion
The shift from fixed-term to rolling assured periodic tenancies marks a significant development in tenant security and landlord responsibilities. While landlords lose some flexibility, careful planning, updated documentation, and engagement with landlord support organisations such as the British Landlords Association will help ensure compliance and continued success in managing rental properties.
Further Reading
- Is Commercial Property a Good Investment in England & Wales?
- Commercial Property Rent Review Protocol
- Investing in Commercial Property vs Residential Property: Advantages and Disadvantages
The Landlord Association (TLA)