This article is for general information only and does not constitute legal advice.
Every assured shorthold tenancy in England became an assured periodic tenancy on 1 May 2026. This happened automatically under Section 3 of the Renters' Rights Act 2025, whether or not the landlord or tenant did anything. Fixed-term clauses in existing contracts are void. Any new tenancy created after 1 May 2026 is periodic from day one.
An assured periodic tenancy has no end date. It rolls on a period-to-period basis (typically monthly, matching the rent payment cycle) until either the tenant gives notice to leave or the landlord obtains a court order for possession.
What changed on 1 May 2026
Before the Renters' Rights Act, the standard residential tenancy in England was an assured shorthold tenancy (AST) with a fixed term, usually six or twelve months. During the fixed term, neither party could end the tenancy unless the contract included a break clause or the tenant breached specific terms.
That structure is gone. According to the House of Commons Library, the new regime applies to all private residential tenancies in England. There are limited exceptions for certain types of accommodation (student halls provided by educational institutions, agricultural tenancies, and some supported housing arrangements).
The key changes:
No new fixed-term tenancies can be created. Landlords cannot include minimum-term clauses. Tenants can end the tenancy at any point by giving two months' written notice. Landlords cannot charge penalties for early departure. Existing fixed-term clauses are overridden by statute.
How tenants end a periodic tenancy
A tenant gives two months' written notice at any time. The notice does not need to align with a rent period or a specific date. Once the notice period expires, the tenancy ends.
There is no cooling-off period and no obligation for the tenant to provide a reason. A tenant who moved in on 1 May 2026 could give notice on 2 May and leave by 2 July.
Trowers & Hamlins notes that landlords should factor higher turnover risk into their financial planning. Short tenancies (under 12 months) are now possible even where neither party anticipated a short stay.
How landlords end a periodic tenancy
Landlords cannot serve notice to end a tenancy at will. The only route to possession is through Section 8 of the Housing Act 1988, citing specific grounds. The most common grounds for BTL landlords are Ground 1 (landlord intends to move in), Ground 1A (landlord intends to sell), and Ground 8 (serious rent arrears).
Grounds 1 and 1A cannot be used during the first 12 months of the tenancy. This prevents landlords from creating short lets and using a sale or move-in ground to remove tenants after a few months.
Rent increases
In a periodic tenancy, rent can only be increased through the Section 13 procedure. The landlord serves a formal notice proposing a new rent, with at least two months' notice. Only one increase is permitted per year.
The tenant can accept the increase or refer it to the First-tier Tribunal (Property Chamber), which determines whether the proposed rent is a market rent. The tribunal cannot set a rent higher than the amount proposed by the landlord.
The Renters' Rights Act removed the landlord's ability to include rent-review clauses in the tenancy agreement. All rent increases go through Section 13 regardless of what the contract says.
Written statement of terms
Every tenancy created from 1 May 2026 requires a written statement of terms containing prescribed content set out in secondary legislation. For existing tenancies, landlords must provide a written statement within the transitional period.
The penalty for not providing a written statement is a civil penalty of up to £7,000.
Landlords must also provide the government-published Renters' Rights Act Information Sheet to every tenant. For existing tenancies, the deadline was 31 May 2026. For new tenancies, it must be provided at the start. Failure carries a civil penalty of up to £7,000.
Practical implications for landlords
The shift to periodic tenancies changes the risk profile of BTL investment. Void periods may increase if tenants leave more frequently. Budget for at least four to six weeks of voids per year rather than assuming year-long tenancies.
Tenant retention becomes more important. A well-maintained property with a fair rent and responsive management keeps tenants longer. The cost of re-letting (cleaning, minor repairs, void period, referencing, and marketing) adds up to £1,000 to £2,000 per turnover.
Rent setting needs more thought. Setting rent too high risks shorter tenancies and more voids. Setting rent below market rate leaves money on the table. Checking comparable rents on Rightmove and Zoopla for your area before setting or increasing rent helps find the right level.
Sources
- Renters' Rights Act 2025, Section 3, legislation.gov.uk. https://www.legislation.gov.uk/ukpga/2025/26/section/3 [Accessed 6 May 2026]
- House of Commons Library, "Renters' reform in England: what's happening and when?". https://commonslibrary.parliament.uk/renters-reform-in-england-whats-happening-and-when/ [Accessed 6 May 2026]
- Trowers & Hamlins, "Renters' Rights Act 2025". https://www.trowers.com/insights/2026/april/renters-rights-act-2025 [Accessed 6 May 2026]