Fixed-Term Tenancies Abolished: Periodic Tenancy Rules for Landlords 2026
From 1 May 2026, all new assured tenancies are periodic from day one. Existing fixed terms convert on expiry. Understand how periodic tenancies work, what changes, and the 12-month protected period.
The Latch Team
Editorial
From 1 May 2026, fixed-term assured shorthold tenancies are abolished in England. Every new assured tenancy created after this date will be periodic from day one — rolling on a monthly (or weekly) basis with no fixed end date. Existing fixed-term tenancies will continue until their natural expiry, then automatically convert to periodic tenancies. This is one of the most fundamental changes introduced by the Renters' Rights Act 2025 and it affects how every landlord in England structures, manages, and ends tenancy agreements.
The shift to periodic tenancies gives tenants significantly more flexibility — they can leave with just two months' notice at any time, without waiting for a break clause or fixed-term expiry. For landlords, it means you can no longer rely on a fixed term to guarantee a minimum tenancy length. Instead, a new 12-month protected period restricts the use of certain possession grounds during the first year. Latch tracks notice periods, protected period expiry, and Section 13 rent increase eligibility for every tenancy automatically.
This guide covers everything landlords need to know: what periodic tenancies mean in practice, how existing tenancies are affected, the tenant's new notice rights, the 12-month protected period and which eviction grounds are blocked, the impact on financial planning, and how to update your tenancy agreements.
What Is a Periodic Tenancy?
A periodic tenancy is one that rolls on a period-by-period basis — typically month to month — with no fixed end date. It continues indefinitely until either the tenant gives notice to leave or the landlord obtains a possession order through the courts using valid Section 8 grounds. There is no expiry date, no renewal process, and no break clause. The tenancy simply continues until someone takes action to end it.
Under the current system, most private tenancies begin with a fixed term (typically 6 or 12 months) and then roll into a statutory periodic tenancy if neither party acts. The Renters' Rights Act removes the fixed-term stage entirely. From 1 May 2026, new tenancies start as periodic from the very first day.
| Feature | Fixed-Term (Current) | Periodic (From May 2026) |
|---|---|---|
| Duration | Set period (usually 6 or 12 months) | Rolls monthly with no end date |
| Tenant can leave early | Only via break clause or mutual agreement | At any time with 2 months' notice |
| Landlord can recover possession | Section 21 (no-fault) or Section 8 (fault-based) | Section 8 grounds only (no Section 21) |
| Rent increases | Usually fixed for the term, or by agreement | Section 13 notice only, once per year, 2 months' notice |
| Guaranteed minimum tenancy | Yes — the fixed term guarantees occupancy | No — but 12-month protected period limits landlord grounds |
| Renewal process | New fixed term or rolls to periodic | No renewal needed — tenancy continues automatically |
| Tenancy agreement | New agreement for each fixed term | Single agreement, no renewals required |
What Happens to Existing Fixed-Term Tenancies
Existing fixed-term assured shorthold tenancies created before 1 May 2026 are not immediately affected. They continue under their existing terms until the fixed term expires. However, once the fixed term ends, the tenancy automatically converts to a periodic tenancy under the new Renters' Rights Act framework.
This means no landlord can offer a new fixed-term renewal after 1 May 2026. If your current tenant's 12-month fixed term expires in September 2026, the tenancy becomes periodic from October 2026 — and cannot be converted back to a fixed term.
| Scenario | What Happens | When |
|---|---|---|
| New tenancy signed after 1 May 2026 | Periodic from day one | Immediately |
| Existing fixed term expires after 1 May 2026 | Converts to periodic tenancy | On the date the fixed term ends |
| Existing fixed term expires before 1 May 2026, already periodic | Continues as periodic under new rules | From 1 May 2026 |
| Fixed term with 2+ years remaining on 1 May 2026 | Continues until natural expiry, then converts | On the date the fixed term ends |
| Tenant wants to leave during remaining fixed term | Must still honour fixed-term obligations until expiry | Until fixed term ends, then 2-month notice applies |
If you have tenants on fixed terms expiring in 2026 or 2027, plan now for the transition to periodic tenancies. You will not be able to offer a new fixed term at renewal.
Tenant Two-Month Notice Right
Under the periodic tenancy system, tenants can end their tenancy at any time by giving two months' written notice. There is no requirement to wait for a break clause window or a fixed-term expiry. The notice period runs from the next rent due date after the notice is served.
This is a significant change for landlords who currently rely on fixed terms to guarantee occupancy. A tenant who moves into your property on 1 June 2026 could serve notice on 1 July 2026 and leave by 1 September 2026 — just three months after moving in. There is no minimum tenancy period for tenants.
- Notice period: Two months minimum — this is a statutory right and cannot be extended by the tenancy agreement
- Notice runs from: The next rent due date after notice is served (e.g. notice served on 15 June, rent due 1st of each month — notice runs from 1 July, tenancy ends 1 September)
- Written notice required: The tenant must give notice in writing — verbal notice is not valid
- No reason required: The tenant does not need to give a reason for leaving
- Cannot be waived: Any tenancy clause requiring more than two months' notice or restricting the tenant's right to give notice is unenforceable
For a complete breakdown of tenant notice requirements, see our tenant notice and periodic tenancy guide.
The 12-Month Protected Period
To balance the loss of fixed-term security for landlords, the Renters' Rights Act introduces a 12-month protected period at the start of every new tenancy. During this period, landlords cannot use certain possession grounds — specifically those that do not involve tenant fault. This prevents landlords from granting a tenancy and then immediately seeking possession to sell or move in.
The protected period runs for 12 months from the start date of the tenancy. After 12 months, all Section 8 grounds become available (subject to their individual notice and evidence requirements). Fault-based grounds — such as rent arrears and anti-social behaviour — remain available throughout the protected period.
| Possession Ground | Available During Protected Period? | Notice Period |
|---|---|---|
| Ground 1 — Landlord wants to sell | No — blocked for 12 months | 4 months |
| Ground 1A — Landlord or family wants to move in | No — blocked for 12 months | 4 months |
| Ground 5 — Required for a minister of religion | No — blocked for 12 months | 2 months |
| Ground 6 — Major redevelopment | No — blocked for 12 months | 4 months |
| Ground 8 — Serious rent arrears (3+ months) | Yes — available from day one | 4 weeks |
| Ground 10 — Some rent arrears | Yes — available from day one | 2 weeks |
| Ground 12 — Breach of tenancy terms | Yes — available from day one | 2 weeks |
| Ground 14 — Anti-social behaviour | Yes — available from day one | Immediate to 4 weeks |
| Ground 14A — Domestic abuse | Yes — available from day one | 2 weeks |
The 12-month protected period only restricts landlord no-fault grounds. If a tenant is in serious rent arrears, causing anti-social behaviour, or breaching the tenancy, you can still seek possession during the protected period.
For a detailed breakdown of every ground affected by the protected period, see our 12-month protected period guide.
Impact on Financial Planning
The abolition of fixed terms introduces a new financial planning consideration for landlords. Under the current system, a 12-month fixed term guarantees at least 12 months of rental income (minus the risk of arrears or abandonment). Under the new periodic system, a tenant can leave with two months' notice at any point, creating potential void periods that are harder to predict.
In practice, the impact may be less dramatic than it appears. Research from the English Housing Survey shows that the average private rented sector tenancy lasts 4.3 years — far longer than a typical 12-month fixed term. Most tenants stay because the property suits them, not because a contract binds them. However, landlords should adjust their financial planning to account for potentially shorter tenancies at the margins.
Cash Reserve
Maintain a cash reserve equivalent to 2-3 months' rent per property to cover unexpected void periods. This was good practice before and is essential now.
Marketing Speed
Reduce re-let times by having a marketing plan ready before notice is served. Pre-prepared listings and professional photographs mean you can advertise within days.
Tenant Retention
Focus on tenant satisfaction to encourage longer stays. Responsive maintenance, fair rent increases, and professional communication reduce turnover.
Rent Reviews
Use annual Section 13 rent increases to keep rents at market rate. Falling behind market rate encourages tenants to stay but reduces your income. Significantly above-market rent encourages tenants to leave.
The Section 13 rent increase process is now the only mechanism for raising rent during a tenancy. See our Section 13 rent increase guide for the full procedure and timeline.
Updating Your Tenancy Agreements
All tenancy agreements used after 1 May 2026 must reflect the new periodic tenancy framework. Fixed-term clauses, break clauses, and renewal provisions are no longer relevant and should be removed to avoid confusion. The agreement should clearly state that the tenancy is periodic and outline the statutory notice provisions.
- Remove all fixed-term duration clauses (e.g. "for a term of 12 months commencing...")
- Remove break clauses — they are unnecessary in a periodic tenancy where the tenant has a statutory 2-month notice right
- Remove renewal provisions and associated fees — periodic tenancies do not renew
- Add a clear statement that the tenancy is a periodic assured tenancy under the Renters' Rights Act 2025
- Include the statutory tenant notice provision (2 months' written notice to the next rent due date)
- Update rent increase clauses to reference Section 13 notices only — remove any clauses allowing contractual rent increases
- Include the requirement to provide the government-prescribed Information Sheet before or at the start of the tenancy
- Review and update deposit protection clauses to reflect any changes in timing requirements
- Remove any clause that attempts to restrict the tenant's statutory right to give 2 months' notice
Do not attempt to replicate a fixed term by including a penalty clause for early departure. Any clause that restricts the tenant's statutory 2-month notice right is unenforceable and could expose you to a compensation claim.
Student Lettings Exception
The Renters' Rights Act includes a narrow exception for student accommodation provided by specified educational institutions. Universities, colleges, and other institutions designated by the Secretary of State can continue to offer fixed-term tenancies aligned with academic years. This recognises that student accommodation has unique requirements — aligning lettings with term dates and ensuring availability for the next intake.
This exception does not apply to private landlords who let to students. If you are a private landlord renting a house or flat to university students, your tenancy must be periodic from 1 May 2026 — the same as any other residential letting. The exception is strictly limited to accommodation provided by or on behalf of specified educational institutions.
Private landlords letting to students must use periodic tenancies from 1 May 2026. The student lettings exception only applies to specified educational institutions — not private landlords.
For student landlords, this means adjusting your approach. You cannot guarantee a 12-month tenancy through a fixed term. However, the 12-month protected period means you cannot use no-fault grounds to recover possession in the first year, giving some practical security. Most student tenants will stay for the academic year regardless of the tenancy type, as their housing need is tied to their course dates.
Timeline: How the Transition Works
| Date | Event | Impact on Landlords |
|---|---|---|
| Before 1 May 2026 | Existing fixed-term ASTs continue as normal | No immediate change to current tenancies |
| 1 May 2026 | All new tenancies must be periodic | Update tenancy agreements, stop offering fixed terms |
| 1 May 2026 | Section 21 abolished | No new Section 21 notices can be served |
| After 1 May 2026 | Existing fixed terms expire and convert to periodic | Each tenancy converts individually on its expiry date |
| 12 months after tenancy start | Protected period ends | All Section 8 grounds become available for that tenancy |
| Phase 2 (Autumn 2026) | PRS Database launches | Must register to serve valid notices |
For the full picture of every change introduced by the Renters' Rights Act, read our complete guide to the Renters' Rights Act 2026.
Frequently Asked Questions
Can I still use a fixed-term tenancy after 1 May 2026?
No. All new assured tenancies created in England after 1 May 2026 must be periodic. You cannot create a new fixed-term assured shorthold tenancy. The only exception is certain student lettings by specified educational institutions.
What happens to my existing fixed-term tenancy?
Existing fixed-term tenancies continue until their natural end date. When the fixed term expires, the tenancy automatically converts to a periodic tenancy under the new rules. No new fixed-term renewal can be offered.
Can a tenant leave during the 12-month protected period?
Yes. Tenants can give two months' notice to leave at any time, including during the protected period. The 12-month protection only restricts certain landlord possession grounds — it does not restrict the tenant's right to leave.
How does this affect rent increases?
Rent can only be increased via a Section 13 notice, once per 12 months, with at least two months' notice. The first increase cannot take effect until at least 12 months after the tenancy started (or 12 months after the last increase). Tenants can challenge the increase at the First-tier Tribunal.
What about student lettings?
The Act includes a limited exception for student lettings by specified educational institutions (universities and colleges). These providers can still offer fixed-term tenancies aligned with academic years. Private landlords letting to students do not benefit from this exception — their tenancies must be periodic.
Can I use a longer notice period in the tenancy agreement?
No. The statutory minimum for tenants is two months' notice. You cannot require a longer notice period in the tenancy agreement. Any clause requiring more than two months' tenant notice is unenforceable.
Adapting to the Periodic Tenancy Model
The abolition of fixed-term tenancies is a fundamental shift, but it is manageable with the right preparation. Most tenants already stay well beyond the typical fixed term, so the practical impact on occupancy may be smaller than feared. The 12-month protected period provides meaningful security against speculative tenancies, while fault-based grounds remain available from day one. Focus on three things: update your tenancy agreements, adjust your financial planning for potential shorter tenancies, and invest in tenant retention through professional management and responsive maintenance. The landlords who adapt quickly will maintain stable, profitable portfolios.
Best for: All landlords with residential properties in England, whether creating new tenancies or managing existing fixed terms approaching expiry.
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Get Started with LatchDisclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Legislation and regulations change frequently. Always consult a qualified solicitor or legal professional for advice specific to your circumstances.
