As the UK government prepares to implement the Renters’ Rights Bill, one of the biggest changes facing landlords and tenants is the shift from fixed-term tenancy agreements to periodic tenancies. This reform is part of a broader strategy to modernise the private rented sector, and it’s expected to come into force by end of 2025.
But what exactly is changing? And what do these changes mean for landlords and tenants?
What Is a Fixed-Term Tenancy?
A fixed-term tenancy is a rental contract that runs for a set period – typically six or twelve months. During this time, tenants commit to staying in the property, and landlords generally can’t end the tenancy early unless there’s a breach of the agreement or in line with the break clause or end of the tenancy. For many landlords, fixed-term tenancies offer reassurance that rent will be paid for a predictable duration.
However, they can be restrictive for tenants, particularly if their circumstances change unexpectedly and they need to move before the term ends.
What Is a Periodic Tenancy?
A periodic tenancy (also known as a rolling tenancy) continues on a monthly or weekly basis with no defined end date. This type of agreement renews automatically and can be ended by either party with the required notice – currently one month from the tenant and two months from the landlord, depending on the terms.
Why Are Fixed-Term Tenancies Being Phased Out?
Under the proposed Renters’ Rights Bill, all new tenancies in England will automatically become periodic. This change is part of a wider government initiative to rebalance power in the rental sector, making it easier for tenants to move, challenge poor landlord practices, and avoid being locked into long contracts unnecessarily.
The reform aims to standardise tenancy structures and remove the complexity that arises from different types of agreements. The change also reflects shifting attitudes among renters, many of whom now favour flexibility over long-term commitment.
Key Changes Introduced by the Renters’ Rights Bill
The Bill brings in a number of important reforms beyond the shift away from fixed terms:
- All Tenancies to Be Periodic: Going forward, all new tenancy agreements will be periodic from the outset. There will be no more initial six- or twelve-month fixed terms.
- Abolition of Section 21: Landlords will no longer be able to evict tenants without providing a valid reason. This marks the end of the so-called “no-fault” evictions that have long caused uncertainty for renters.
- Clear Grounds for Possession: To regain possession of their property, landlords must now use one of the lawful grounds under Section 8, such as wanting to sell or move back into the property and give a longer notice period to tenants.
- Restrictions on Rent Increases: Rent can only be raised once per year under the new legislation, and tenants must be given at least two months’ notice. If they believe the increase is unfair, tenants can dispute it via a tribunal.
- Stronger Anti-Discrimination Protections: Landlords will not be allowed to refuse applicants solely on the basis of receiving benefits or having children.
What This Means for Landlords
Landlords will need to adapt to a more flexible and tenant-focused rental system. With the end of fixed-term tenancy options, planning for longer-term occupancy becomes more important. Although the new rules do allow for repossession on fair and reasonable grounds, it will be crucial for landlords to maintain thorough records and follow correct procedures.
Landlords should:
- Familiarise themselves with the updated Section 8 grounds
- Ensure all new tenancy agreements comply with the upcoming legislation
What This Means for Tenants
Tenants will benefit from increased mobility and stability. Being tied into a fixed-term contract will no longer be the norm, and the new rules mean renters can leave at any point, with two months’ notice. This is particularly helpful for tenants whose jobs, family circumstances, or personal plans change unexpectedly.
Looking Ahead
With fixed-term tenancy changes set to become law by the end of 2025, both landlords and tenants have time to prepare — but that time should be used wisely.
Key actions include:
- Reviewing current tenancy agreement templates
- Seeking legal or property management advice
- Keeping up-to-date with government announcements and implementation timelines
The shift to periodic tenancies in the UK marks a significant cultural and legal shift in the private rental sector. For tenants, it promises more control and protection. For landlords, it introduces new responsibilities and the need for a proactive approach. Ultimately, the goal is a fairer and more transparent rental system for everyone.
At Complete, we will keep you updated with any changes to legislation and communicate the important actions you need to take. Our team is ready to assist with any questions or concerns you may have regarding the Renters’ Rights Bill, ensuring you are well-prepared to meet the new requirements with confidence.
To chat with an expert, connect with us today.
