While the abolishment of Section 21 has generated much heated discussion, another important part of the Renters’ Rights Act is the change to tenancy rules.
From the 1st of May 2026, fixed-term assured tenancies will disappear and almost every private tenancy in England become periodic. Here’s what landlords need to know.
The current system
Since 1988, most tenancies have been ‘fixed term’, meaning the landlord and tenant are locked into the contract for a certain length. Often, this is 12 months with a six-month break clause. When the tenant signs the agreement, they commit to paying the rent for at least six or 12 months.
This arrangement gives the landlord some financial security. They can feel confident they’ll earn an income for a set period.
From the tenant’s point of view, however, a fixed-term tenancy means they lack the flexibility to move when their situation changes; for example, when they get a new job or their relationship ends. They might also need to keep paying rent for a home that becomes substandard if, say, the boiler breaks and isn’t fixed.
The government has decided to rebalance these rights by replacing fixed-term tenancies with periodic ones. While this gives tenants some flexibility, landlords can also look forward to benefits. Let’s look in detail at what’s ahead.
The new system of mandatory periodic tenancies
No longer will tenancies be fixed in length. Instead, tenants can have more leeway over their living arrangements.
Under periodic tenancies, people can:
- Give notice to leave a property from day one (the notice period is two months)
- Stay for as long as they want (assuming they follow the rules, of course)
As it currently stands, in periodic tenancies where rent is paid monthly, the notice period is just one month. The shift to two months will give landlords more time to find new tenants or make other plans for their property, reducing their financial risk.
How landlords can prepare
For many landlords, the transition to mandatory periodic tenancies won’t cause too much disruption. Although there’s no guarantee for the first six or 12 months of rent, in reality, many tenants won’t leave during that time anyway. A government survey of 2022 to 2023 found that the average tenure is four years.
There will, however, be some paperwork involved. Landlords will need to provide specific, written information to their renters before they sign the tenancy agreement. So far, the government has shared this mandatory information in draft form and is expected to publish a final version in March.
Look out for further Winkworth updates
From the start of May, landlords won’t be able to offer fixed-term tenancies – all contracts will be periodic from day one. This will mean a slightly different way of organising your business finances and admin. Are you ready? It’s worth spending some time preparing for this change, along with other aspects of the Renters’ Rights Act, to guard against any legal and financial penalties. Visit the Winkworth blog for further updates over the next few weeks.
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