Understanding Fixed-Term Tenancies and the Changes Under the Renters’ Rights Act 2025
Introduction: A Fundamental Change to Tenancy Structure
The way residential tenancies operate in England is undergoing one of the biggest changes in decades. The Renters’ Rights Act 2025, which received Royal Assent on 27 October 2025, removes fixed-term tenancies and replaces them with a single system of open-ended periodic tenancies.
While the Act is now law, the tenancy reforms including the abolition of fixed terms and Section 21 will come into force on 1 May 2026.
This guide explains what fixed-term tenancies were, how the system is changing, and what these reforms mean for landlords in practical, day-to-day terms.
What Is a Fixed-Term Tenancy? (The Old System)
A fixed-term tenancy, most commonly known as an assured short hold tenancy (AST) is a rental agreement that runs for a defined period, typically 6 or 12 months, and ends on a specific date.
Under the old system:
● Tenants had security for the agreed term and could not usually leave early without penalty (unless a break clause applied)
● Landlords could plan around the end date, for example to sell the property or move back in
● At the end of the fixed term, landlords could serve a Section 21 “no-fault” notice to regain possession
● If no action was taken, the tenancy usually rolled into a statutory periodic tenancy
Fixed terms provided certainty for both sides tenants knew how long they could stay, and landlords knew when they could regain possession without giving a reason.
How Fixed-Term Tenancies Work Up to 1 May 2026
Until the reforms take effect:
● Fixed-term ASTs can still be granted
● Landlords cannot evict during the fixed term unless a valid Section 8 ground applies
● Section 21 can still be used at or after the end of the fixed term (subject to compliance)
● Tenancies may still roll into periodic tenancies once the term expires
This position changes from 1 May 2026
The Renters’ Rights Act 2025: Moving to Periodic Tenancies
From 1 May 2026, fixed-term tenancies will no longer exist in England.
Instead:
All new tenancies must be periodic from day one
All existing fixed-term tenancies will automatically convert to periodic tenancies
There will be no fixed end date
Tenancies will continue indefinitely until ended by valid notice
Most tenancies will operate on a monthly rolling basis, aligned with how rent is paid.
This change is designed to give tenants greater flexibility, allowing them to move without waiting for a fixed term to end while also simplifying the tenancy system overall.
What This Means for Landlords
1. No More Automatic End Dates
Landlords will no longer be able to rely on a tenancy simply ending on a specific date. A tenancy continues until it is lawfully ended through notice or possession proceedings.
This means you cannot regain possession just because a fixed term has expired.
2. Section 21 Is Abolished
From 1 May 2026, Section 21 “no-fault” evictions are no longer permitted.
Landlords must instead rely on statutory possession grounds under Section 8, which require a valid reason and, in most cases, a court order.
3. Stronger and Expanded Possession Grounds
To balance the removal of Section 21, the Act introduces new and strengthened grounds for possession, including:
● A mandatory ground for selling the property
● A mandatory ground for landlords or close family members moving in
● Strengthened grounds for serious rent arrears
● Improved grounds for antisocial behavior
In most cases, sale or move-in grounds can only be used once the tenant has occupied the property for at least six months. Where a mandatory ground applies and the conditions are met, the court must grant possession.
4. Tenant Notice Periods
Tenants gain increased flexibility but must now give:
● At least two months’ notice to end a periodic tenancy
This is longer than the previous one-rent-period notice and is intended to give landlords more time to plan, re-market, and reduce void periods.
5. Rent Increases Without Fixed Terms
With no fixed terms, rent reviews must follow a statutory process:
● Rent can only be increased once in any 12-month period
● Increases must be served using a Section 13 notice
● At least two months’ notice is required
● The proposed rent must reflect market value
● Tenants may challenge excessive increases at tribunal
Contractual rent review clauses tied to fixed terms will no longer apply.
The Bigger Picture for Landlords
While fixed-term certainty is removed, landlords gain:
● A single, clearer tenancy framework
● Expanded and clarified possession grounds
● More predictable notice rule
● Reduced risk of unlawful eviction claims
The system shifts away from automatic expiry and towards reason-based possession, but it also provides landlords with clearer routes to regain their property when genuinely needed.
How Letting Agents Can Support You
A knowledgeable letting agent becomes even more important under the new regime. Support typically includes:
Updating Tenancy Agreements
Replacing fixed-term clauses with compliant periodic terms, updating notice provisions, and reflecting new rent increase procedures.
Advising on Possession Grounds
Explaining when and how possession can be sought, what evidence is required, and how to avoid costly mistakes.
Managing Notices and Timing
Serving correct tenant notices, Section 13 rent increases, and Section 8 possession notices in line with the new rules.
Tenant Communication
Explaining the changes clearly to tenants, managing expectations, and maintaining positive landlord-tenant relationships.
Rent Review Guidance
Helping landlords align annual rent reviews with market data while minimising the risk of disputes.
Ongoing Management
Continuing to handle compliance, maintenance, rent collection, and day-to-day management as normal.
Conclusion: A Structural Change, Not a Crisis
The Renters’ Rights Act 2025 fundamentally changes how tenancies operate in England, replacing fixed terms with a more flexible periodic system. While this removes some traditional landlord controls, it also introduces clearer rules, stronger possession grounds, and a more predictable framework overall.
With the right advice, preparation, and professional management, landlords can continue to operate successfully under the new system.
If you have questions about how these changes affect your properties or want help preparing ahead of 1 May 2026, please contact us at Tri Property Fusion on 07776117358 we’re here to help you stay compliant and confident.
