So, what are the new periodic tenancies and how do they work?
In one of the biggest upheavals of the rental market in a generation, assured shorthold tenancies (ASTs) will be abolished in England from May 1, 2026, under the Renters’ Rights Act and replaced with a single system of rolling periodic agreements. There will no longer be any fixed end dates, Section 21 no-fault evictions will be scrapped, and all possession must use statutory grounds and go through the court system. Landlords will, though, still be able to recover property and increase rents, but control shifts from contract expiry to legal process.
Below is an overview of the main key changes.
Fixed terms ended
Six- and twelve-month ASTs abolished.
A tenancy will start and continue indefinitely until notice is served. There is no expiry point and no renewals.
In practice, that means:
- no guaranteed end date
• tenancy rolls forward continuously
• possession is not linked to contract expiry
• statute governs the end of the tenancy (WHAT DOES THIS MEAN?)
The default relationship is open-ended.
Existing tenancies convert automatically
The reform applies to current lets as well as new ones.
When the Act takes effect:
- all existing ASTs will convert to periodic
• any remaining fixed months are overridden
• Section 21 ends immediately
• the new framework applies from day one
Older contracts do not preserve fixed terms beyond implementation. (THIS IS NOT VERY CLEAR)
Section 21 disappears
“No-fault” evictions banned.
All possession claims must run through the court system using revised Section 8 grounds. There is no quick route to regain a property once Section 21 ends.
Landlords must rely on grounds including:
- intention to sell property
• landlord or family occupation
• serious rent arrears
• anti-social behaviour
• breach of agreement
Possession remains available, but it becomes procedural. Timing depends on statutory notice and court process rather than contract expiry.
Tenants gain mobility
Tenants can leave mid-tenancy by giving two months’ notice.
For landlords, this creates:
- less predictable vacancy timing
• shorter guaranteed income blocks
• greater turnover exposure
• tighter cashflow planning
Income stability depends more on occupancy than contract length.
Rent increases move to a statutory cycle
With no renewals, rent reviews are formalised.
Increases use of Section 13 notices, which are limited to once per year, and must give at least two months’ notice. Tenants can challenge an increase through the First-tier Tribunal, which determines the market rent. Other rent review mechanisms are no longer permitted.
The effect:
- fixed annual reviews that can be challenged via tribunal
• slower reaction to fast market changes
• greater emphasis on timing
Rent setting becomes a scheduled statutory process.
Operational impact
The system removes the sign-renew-reset cycle.
There are no renewal checkpoints to trigger administration. Management becomes continuous:
- compliance must be tracked on a rolling basis
• inspections are scheduled by policy, not contract date
• rent reviews follow calendar timing
• possession planning is legal, not contractual
• tenant engagement is ongoing
Landlords cannot rely on contract milestones to force management moments.
Student tenancies
Most private student lets fall within the assured tenancy system and will move into the periodic framework.
The Act introduces a specific possession ground for full-time student accommodation so landlords can recover property in line with the academic year. This ground must be declared at the start of the tenancy and is designed to protect the September turnover model used in the student market. (IS THIS RIGHT?- DOUBLE-CHECK)
Purpose-built student accommodation remains outside the assured tenancy regime.
Potential benefits
Some landlords may see:
- longer average tenant stays
• reduced churn costs
• fewer renewal admin cycles
• steadier occupancy
Long-term tenant portfolios are likely to adapt more easily than high turnover strategies.
Key risks
The main concerns are predictability and control:
- no guaranteed end date
• reliance on legal possession routes
• mid-cycle exits
• slower rent adjustment
• exposure to court delay
• reduced contractual leverage
Landlords dependent on fixed-term certainty will feel the impact of the changes most.
Structural reset
The reform removes the fixed-term tenancy model and replaces it with a fully periodic system governed by statute. Landlords can still let property, recover possession and raise rents, but they must do so through statutory processes instead of relying on fixed contract end dates.
The practical effect is a shift in how tenancies are managed. Income forecasting, exit timing and tenant retention become more important because there is no built-in contract breakpoint. The period before May 2026 is the preparation window for operating under those new rules.
