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Renters’ Rights Act Essential Tips – Fixed terms becoming illegal

Summary: From 1 May 2026, the Renters’ Rights Act 2025 will abolish fixed-term assured and assured shorthold tenancies, converting all such agreements into assured periodic tenancies. This significant change means landlords must update tenancy agreements and adjust their approach to managing tenants, while tenants gain greater security but lose the certainty of fixed terms.

Introduction to the Renters’ Rights Act 2025 Changes

The Renters’ Rights Act 2025, expected to come into force on 1 May 2026, will bring a fundamental shift in residential tenancy law across England. One of the most notable changes is the abolition of fixed-term assured and assured shorthold tenancies. Instead, all tenancies will automatically convert to assured periodic tenancies from the commencement date. This means landlords will no longer be able to offer tenancy agreements with a fixed end date.

This reform follows the earlier removal of section 21 no-fault eviction notices, further strengthening tenant protections. However, the removal of fixed terms introduces new challenges and responsibilities for landlords, requiring careful preparation and a change in mindset.

Implications for Landlords: Amending Tenancy Agreements

Landlords must ensure that any tenancy agreements granted after 1 May 2026 do not include a fixed end date or imply a fixed term. Including an end date will not only be legally ineffective but could also expose landlords to a civil penalty of up to £7,000. Government guidance for local authorities suggests typical fines will be around £4,000.

It is essential for landlords and letting agents to review and update all tenancy documentation accordingly. This includes removing any language that suggests a tenancy has a fixed duration. Failure to comply risks financial penalties and potential legal complications.

For existing tenancies that began before 1 May 2026, fixed terms will end on the commencement date of the Act. These tenancies will convert automatically to periodic tenancies without the need to issue new agreements. However, landlords must serve tenants with a government information form within one month of commencement (expected to be published in January 2026) to comply with the new requirements.

Adjusting Landlord Expectations and Management Practices

With the end of fixed terms, the length of a tenancy will be determined by the tenant rather than the landlord. Tenants can now serve a two-month Notice to Quit at any time if they wish to leave, providing greater flexibility but also requiring landlords to adapt their approach.

To encourage tenants to remain in their properties long-term, landlords will need to focus on maintaining positive relationships. This includes:

  • Ensuring any promised repairs or improvements are completed promptly, ideally within the first month of tenancy
  • Addressing maintenance issues quickly and efficiently
  • Communicating respectfully and professionally with tenants

Landlords will no longer be able to rely on fixed terms to secure tenancy duration and must instead foster goodwill and tenant satisfaction to reduce turnover.

Benefits and Considerations for Tenants

While some tenants may initially feel uncertain about losing fixed-term security, the removal of section 21 no-fault evictions offers greater protection. Landlords can only regain possession by proving a valid ground in court, providing tenants with enhanced security.

Tenants should be aware, however, that without fixed terms, landlords retain the right to regain possession for legitimate reasons such as selling the property or moving in family members. In such cases, tenants will receive a four-month notice period and have the right to remain in the property until a court possession order and bailiff’s appointment are secured, which can take six months to a year under the current system.

Importantly, tenants cannot be compelled to stay or continue paying rent if they choose to leave, giving them greater control over their housing situation.

Conclusion

The Renters’ Rights Act 2025 represents a major shift in residential tenancy law, with the abolition of fixed-term tenancies and the introduction of assured periodic tenancies as the default. Landlords must update tenancy agreements and adopt a more tenant-focused approach to property management, while tenants gain stronger protections but lose the certainty of fixed terms.

For landlords seeking further guidance on the Renters’ Rights Act 2025 and related changes, additional resources and tips are available at Landlord Association.

Keywords: Renters’ Rights Act 2025, fixed-term tenancies, assured periodic tenancy, section 21 abolition, landlord penalties, tenant Notice to Quit, tenancy agreements, landlord responsibilities, tenant protections

Renters’ Rights Act 2025: Fixed-Term Tenancies Become Illegal – Essential Tips for Landlords

Source: www.landlordlawblog.co.uk

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