Fixed-term tenancies abolished: what to know | August

Fixed-term tenancies abolished: what landlords need to know

The abolition of fixed-term tenancies is one of the most fundamental changes the Renters' Rights Act 2025 makes to private renting in England, and it has been in force since 1 May 2026. From that date, landlords can no longer agree a fixed term with a tenant. Every new tenancy is periodic from day one, and almost every existing tenancy converted automatically to a periodic tenancy on the commencement date. For many buy-to-let landlords the fixed term was the backbone of the letting model: a guaranteed six or twelve months of income, a predictable end date for planning, and a defined window for inventory, check-out and re-letting. This article explains what the change means in practice, what protections remain, and how to adapt.

What the abolition of fixed terms actually means

Under the Housing Act 1988 as it stood before the Renters' Rights Act, a landlord and tenant could agree an assured shorthold tenancy (AST) for a fixed period, most commonly six or twelve months. During that term the tenant had security of tenure and the landlord had a guaranteed occupant, and at the end the tenancy could be renewed, allowed to roll into a statutory periodic tenancy, or ended using Section 21.

The Act removes the ability to create a fixed-term AST. Since 1 May 2026, no new fixed-term tenancy can be created; any agreement that purports to be for a fixed period takes effect as a periodic tenancy from the outset. Almost all existing tenancies converted automatically to assured periodic tenancies on the commencement date, regardless of how long was left to run, and a tenancy now continues indefinitely until the tenant gives notice or the landlord obtains a court order on a Section 8 ground. The House of Commons Library confirms that from 1 May 2026 assured shorthold tenancies have converted to assured periodic tenancies with no end date, Section 21 has been abolished, and the reformed grounds for possession apply (CBP-10669). The period of the tenancy follows how often rent is paid, so for most landlords this is a monthly periodic tenancy.

What happened to existing fixed-term tenancies on commencement

If you had a tenant on a fixed-term AST running beyond 1 May 2026, the fixed term did not continue to its contracted end date. On the commencement date the tenancy converted to a periodic tenancy by operation of law, which means the tenant did not need to sign anything and you do not need to re-issue the written agreement. The existing terms continue to apply, such as the rent, the deposit and each party's obligations, except for provisions incompatible with the new periodic structure, so any clause specifying a fixed end date, or a break clause tied to the fixed term, no longer has effect. You cannot enforce the remainder of the old fixed term; the tenant's right to occupy is now periodic.

In practice, a tenant on a twelve-month AST that began in November 2025 and was due to run to October 2026 moved onto a periodic tenancy on 1 May 2026. You cannot enforce the October 2026 end date; the tenant stays on a rolling monthly basis until they serve notice or you obtain a court order.

There is one exception to immediate conversion. Where you served a valid Section 21 or Section 8 notice before 1 May 2026 and possession proceedings have not concluded, the tenancy remains an AST until those proceedings finish or the notice lapses. For a full overview of everything that changed on the same date, see our Renters' Rights Act post-commencement guide.

What a periodic tenancy looks like in practice

A tenancy now runs indefinitely from the start date and rolls on until it is ended. The two changes that matter most are how tenants give notice and how landlords recover possession.

How notice works for tenants

A tenant who wants to leave must give at least two months' written notice, and the notice must expire at the end of a rental period. Crucially, a tenant can give that notice at any time, including early in the tenancy. There is no minimum term and no period during which the tenant is prevented from serving notice. The government's own guidance describes the new system as rolling tenancies that allow tenants to give two months' notice at any time.

This is a genuine change for landlords, and an honest one to plan around: where a six-month AST once guaranteed six months of income, a tenant on a periodic tenancy could in principle give valid notice within the first couple of months. Any clause that tries to impose a minimum term, or to require more than two months' notice from the tenant, is void and cannot be enforced.

How notice works for landlords

Landlords cannot end a tenancy simply by giving notice. The only routes to possession are waiting for the tenant to serve notice and leave, or serving a Section 8 notice on a statutory ground and, if the tenant does not leave, obtaining a court order. There is no longer any equivalent of a Section 21 notice or of relying on the end of a fixed term, so every contested possession now requires a court order. Our guide to how long eviction takes in 2026 sets out the timeline from notice to enforcement.

How rent increases work without a fixed term

Many landlords used to raise rent by issuing a new AST at the end of the term. With periodic tenancies that route is gone, and rent can only be increased through the statutory Section 13 process. You must give at least two months' written notice of the proposed new rent on the prescribed Section 13 form (Form 4A), rent can be increased only once in any twelve-month period, and the notice must state the new rent and the date it takes effect. If the tenant disputes it, they can refer the increase to the First-tier Tribunal (Property Chamber), and the Act now prevents the tribunal from setting a rent higher than the figure the landlord proposed. Agreeing an increase informally outside the Section 13 procedure is no longer permitted, and tenants also have a stronger ability to challenge the starting rent early in a tenancy. Landlords who once relied on end-of-term resets should build an annual Section 13 review into their management calendar.

The Section 8 grounds that replace the fixed-term safety net

The fixed term gave landlords a measure of control: when it ended, you could decide not to renew. Under the new system the equivalent protections come through specific Section 8 grounds, and the notice periods are longer than many landlords expect.

Ground 1: landlord or close family member wants to move in

Mandatory. If you, your spouse, civil partner or a close family member genuinely intend to occupy the property as a principal home, Ground 1 provides a route to possession on four months' notice. It cannot be used in the first twelve months of the tenancy, meaning the notice cannot expire before the tenancy has run a year, though it can be served from around month eight to allow for the notice period. After recovering possession on this ground, you cannot re-let or market the property for re-letting for twelve months.

Ground 1A: landlord intends to sell

Mandatory. If you intend to sell with vacant possession, Ground 1A applies, again on four months' notice and again subject to the twelve-month protected period. The twelve-month restriction on re-letting and marketing also applies. Because of the four-month notice plus the twelve-month re-let bar, a landlord relying on Ground 1 or 1A is effectively unable to re-let for around sixteen months from serving the notice, so these are not a soft replacement for Section 21. For tenancies that converted on 1 May 2026, the twelve-month protected period runs from the conversion date, so the earliest possession on these grounds for a converted tenancy is around 1 May 2027.

Ground 4A: student HMOs

Mandatory, and designed to keep the student model viable. Ground 4A lets a landlord of a property let predominantly to full-time students recover possession to re-let to a new cohort, on four months' notice, with the notice able to expire only between 1 June and 30 September each year so it aligns to the academic cycle. Our mandatory HMO licensing guide and HMO fire safety guide cover the other student-property requirements.

Ground 8: serious rent arrears

Mandatory. Ground 8 requires the tenant to have at least three months' arrears, or thirteen weeks' if rent is paid weekly or fortnightly, both when the notice is served and at the hearing, with any arrears caused solely by a delayed Universal Credit housing payment left out of the calculation. The Act raised this threshold from two months and doubled the notice period to four weeks. If the arrears fall below the threshold before the hearing, the ground falls away, which is why many landlords also cite the discretionary arrears grounds.

Ground 6: demolition or redevelopment

Mandatory. Where substantial works require the property to be empty, Ground 6 provides a route to possession on four months' notice, and like Grounds 1 and 1A it is subject to the twelve-month protected period at the start of the tenancy.

A full breakdown of the reformed grounds is in our grounds for possession guide.

Tenancy agreements: what to change

If you use standard AST templates, they need updating for any letting from 1 May 2026. Remove all fixed-term clauses and replace them with periodic tenancy language; remove or rewrite break clauses, which make no sense in a periodic tenancy; replace any end-of-term rent review with a Section 13 process; and remove every reference to Section 21. Do not add a minimum-term or extended-notice clause aimed at the tenant, because any term requiring the tenant to stay a minimum period or to give more than two months' notice is void. You must also give the tenant a written statement of the key terms: for new tenancies this is provided at the outset, and for tenancies that converted on commencement the required information had to be given by 31 May 2026. Getting this wrong carries a civil penalty of up to £7,000 for a first breach, rising to up to £40,000 for continued or repeated non-compliance, so it is worth using updated templates from a reputable provider such as the NRLA or a specialist legal publisher rather than an old AST.

Mortgage and insurance implications

Mortgage lenders

Many buy-to-let products historically required letting on a fixed-term AST. With fixed terms gone, lenders have updated their conditions, and most mainstream BTL lenders accept the new periodic tenancies. Check your existing mortgage terms to confirm periodic tenancies are permitted, speak to your lender or broker if you are unsure, and when you remortgage confirm the product explicitly allows assured periodic tenancies under the post-Renters' Rights Act framework.

Landlord insurance

Most policies are written to cover tenancies that comply with current law, and policies updated for 2026 should cover periodic tenancies. Check that your cover applies to tenancies that are periodic from day one, and confirm that any rent guarantee insurance conditions are still met, since some policies previously required a fixed-term AST.

Managing the transition

If you held tenants on fixed-term ASTs, the practical steps are straightforward. Audit your portfolio, listing each tenancy, its original end date and rent, and flag any where the fixed-term end was your intended rent-review or renewal trigger. You are not legally required to notify tenants of the automatic conversion, but a short note confirming the tenancy continues on the same terms, now periodic, is good practice. Plan rent reviews around Section 13 rather than the old term end; for a tenancy that converted in May 2026, the earliest a Section 13 increase could take effect is around July 2026, allowing the two months' notice. Update your tenancy agreement template before taking on any new tenant, review your deposit protection, which continues unchanged for the life of a periodic tenancy, and confirm your lender and insurer are content with the new framework. Our deposit protection guide covers the obligations that run throughout a tenancy, however long it lasts.

Is the abolition of fixed terms bad for landlords?

The initial reaction from many landlords was negative, because the fixed term felt like a safety net, and it is fair to acknowledge a real trade-off: a tenant can now give two months' notice early in a tenancy, so the guaranteed term has gone. There is a more balanced picture, though. A tenant who wants to stay can simply stay, with no renewal negotiation and no cost of issuing a new agreement every year. The genuine concern is regaining possession at a time of your choosing, to sell, refurbish or house a family member, and the reformed Section 8 grounds address those situations, albeit with longer notice and a court process if the tenant does not leave voluntarily, which is why careful tenant selection and rent guarantee insurance still matter. The experience in Scotland and Wales, where similar reforms have operated for several years, is that most tenancies still end with the tenant giving notice and leaving without dispute, so the court route remains the exception rather than the rule.

Frequently asked questions

Can I still agree a minimum tenancy period with a tenant? 

No. A tenant can give two months' notice at any time, and any clause requiring a minimum term or longer notice from the tenant is void. A tenant who serves valid notice is free to leave regardless of any minimum-term wording.

What happened to a break clause in an existing fixed-term AST? 

When the AST converted to a periodic tenancy on commencement, break clauses tied to the fixed term ceased to have effect. The tenant's right to leave is now the statutory two months' notice, and a landlord break clause that previously allowed possession mid-term no longer works; possession is available only through Section 8 grounds.

If a tenant gives notice, do they leave exactly two months later? 

If the notice is valid and expires at the end of a rental period, yes. If the tenant stays beyond the date in their notice, they are holding over and you would need to apply for a court order, though in practice most tenants leave on the stated date.

Can a landlord and tenant agree a longer notice period? 

A tenant cannot be contractually required to give more than two months' notice; any such clause is void. A tenant may voluntarily agree to give longer, for example to help you find a replacement, but that cannot be enforced as a contractual term.

Does this apply to HMOs? 

Yes. Individual tenancies in an HMO became periodic in the same way as single lets, with the same two months' notice right for each tenant. The HMO-specific feature is Ground 4A for student HMOs, described above.

What about tenancies that started before commencement? 

Almost all existing assured and assured shorthold tenancies converted to the periodic framework on 1 May 2026, regardless of when they began. The only exception is where a valid Section 21 or Section 8 notice was served before 1 May 2026 and proceedings are still running.

Key takeaways

• Fixed-term assured shorthold tenancies were abolished on 1 May 2026; all private tenancies in England are now periodic from day one.

• Almost all existing fixed-term tenancies converted automatically to periodic tenancies on commencement; landlords do not need to re-issue agreements, and there is one exception for live pre-1-May possession proceedings.

• A tenant can give two months' notice at any time, expiring at the end of a rental period. There is no minimum term, and clauses imposing one are void.

• Rent can only be increased through a Section 13 notice (Form 4A), once a year, with at least two months' notice, and the tribunal cannot exceed the proposed rent.

• Possession comes through reformed Section 8 grounds: Grounds 1 (move-in), 1A (sale), 6 (redevelopment) and 4A (student HMOs) each require four months' notice, with a twelve-month protected period and, for Grounds 1 and 1A, a twelve-month re-let restriction; Ground 8 (serious arrears) requires three months' arrears and four weeks' notice.

• Update your tenancy agreement template and provide the required written statement of terms; failure can mean penalties of up to £40,000.

This article is for general information and does not constitute legal advice. The position reflects the Renters' Rights Act 2025 as in force in 2026; for the official guidance see the government's Renters' Rights Act guidance on gov.uk. Always take independent advice on your own circumstances.