From Fixed-Term to Rolling: Understanding the New Periodic Tenancies

The Renters’ Rights Act introduces one of the most significant shifts in how private tenancies operate in over 30 years. From fixed terms to rolling contracts, the aim is to create a more flexible and secure rental system for tenants, while ensuring landlords can still recover possession where there’s a legitimate reason to do so.

Under the new rules, all Assured Shorthold Tenancies (ASTs) will automatically become assured periodic tenancies, also known as rolling contracts. These tenancies continue indefinitely until the tenant or landlord gives notice in accordance with the law. 

• Automatic changeover:

  When the new legislation comes into force, all existing ASTs will automatically convert to rolling tenancies. Landlords will not need to issue new tenancy agreements. However, tenants must be provided with a government-issued summary explaining the change within one month of the legislation taking effect. 

• Written terms required:

  At the start of every tenancy, landlords must provide tenants with a written statement of the terms. This will set out key details such as rent amount, payment frequency, notice periods, and both parties’ responsibilities.

• No rent in advance:

  Landlords cannot take rent payments before the tenancy agreement is signed. However, deposits can still be taken at this stage.

• Notice periods:

  • Tenants can end the tenancy at any time by giving two months’ written notice. This notice must expire at the end of a rent period.

  • Landlords must provide valid grounds under Section 8 (as Section 21 “no-fault” evictions are abolished). Some grounds, such as selling or moving back into the property, cannot be used within the first 12 months. 

• Joint tenancies:

  If one tenant gives notice, it ends the tenancy for all tenants. The landlord and remaining tenants can agree to start a new tenancy, but the original one ends automatically. 

From the tenant’s perspective, these reforms bring greater flexibility and protection:

• They can remain in their home for as long as they wish, provided they comply with their tenancy obligations.

• They cannot be asked to leave without valid grounds or before the correct notice period expires.

• Tenants can challenge unfair rent increases without fear of eviction.

For landlords, it’s crucial to understand that while flexibility increases for tenants, predictability and planning become more important for managing turnover, maintenance, and compliance.

• Review and update all tenancy templates to reflect periodic contracts.

• Prepare to issue the required written statement of terms for all new and existing tenancies.

• Set up clear processes to track notice dates and renewal points.

• Communicate with tenants early to manage expectations around flexibility and long-term occupancy.

• Ensure any plans to regain possession (e.g. sale or own use) comply with the 12-month restriction on such grounds.

1. Do landlords need to issue new tenancy agreements when the law changes?

No. Existing ASTs will automatically convert to periodic tenancies. Landlords only need to provide a government summary of the change within one month.

2. Can landlords still end a tenancy without a reason?

No. Section 21 “no-fault” evictions are abolished. Landlords must use valid Section 8 grounds to regain possession.

3. How much notice does a tenant need to give?

Tenants must provide at least two months’ written notice, ending on the last day of a rent period.

4. Can landlords still take rent in advance?

No. The Act bans rent in advance higher than one month’s rent. Deposits, however, remain permitted before signing. 

5. What about student tenancies?

There’s a specific “Ground 4A” allowing landlords of HMOs let to full-time students to regain possession at the end of the academic year, but only under strict conditions.