With the Renters’ Rights Act in full swing as of 1st May 2026, periodic tenancies have officially become the standard across England.
The fixed-term “security blanket” has been consigned to the history books, meaning you no longer have that six or 12-month window of a contractually locked-in tenant.
Whether you have been letting for years or are just getting started, understanding how rolling tenancies work is necessary. It’s not just good practice; it’s how every assured residential tenancy must now operate.
- What is a periodic tenancy?
- How the Renters’ Rights Act changed the tenancy system
- How do periodic tenancies start?
- How long does a periodic tenancy last?
- How to increase the rent
- How can you end a periodic tenancy?
- What happens when only one tenant wants to leave?
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What is a periodic tenancy?
In plain English, a periodic tenancy is a rolling contract.
Unlike a fixed-term agreement (which locks both parties in for a set duration, such as six or 12 months), a periodic tenancy has no “expiry date.” It continues indefinitely until someone decides to end it.
It renews automatically at the end of every rental period, usually monthly or weekly, depending on how often your tenant pays rent.
How the Renters’ Rights Act changed the tenancy system
The Renters’ Rights Act abolished fixed-term Assured Shorthold Tenancies (ASTs) on 1st May 2026, which have been replaced by Assured Periodic Tenancies (APTs). This means:
- You can no longer offer a “6-month” or “1-year” tenancy. Every new agreement now starts as a periodic tenancy by law.
- If you had tenancies in a fixed term on 1st May 2026, they automatically converted into periodic tenancies on this date under the new rules.
- If you try to offer a fixed-term tenancy now, you risk a civil penalty of up to £7,000 from your local authority for a first offence, with significantly higher fines for repeat breaches.
Under this system, the “shorthold” element is gone. Tenants now have the flexibility to leave at any time by giving not more than 2 months’ notice, while you must provide a valid statutory ground to regain possession.
How do periodic tenancies start?
Since the new legislation took effect, periodic tenancies generally come into existence in one of two ways:
From the outset
All new tenancies created after 1st May 2026 are periodic from the first day. The move-in date marks the start of the first rental period, and the contract simply rolls forward from there.
By conversion
For tenancies that started before 1st May 2026, the law automatically converted them into the periodic system. These are now governed by the new rules, regardless of what the original paperwork or any existing “fixed-term” dates said.
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How long does a periodic tenancy last?
A periodic tenancy has no end date. It lasts as long as both parties are happy for it to continue. The “period” of the tenancy is almost always linked to the rent payment cycle.
Since the Act caps rent periods at a maximum of one month, most tenancies in England now roll on a monthly basis.
How to increase the rent
The rules for increasing rent are now fully standardised. Rent review clauses in tenancy agreements are invalid and no longer legally binding, so you must use the statutory Section 13 process (Form 4A) instead.
You can only increase rent once every 12 months, and you must give your tenant at least two months’ notice before the new rent takes effect.
Tenants also have the right to challenge the increase at a First-tier Tribunal if they believe it is above the local market rate. The Tribunal can no longer set a rent higher than what you originally proposed.
How can you end a periodic tenancy?
Now that the Renters’ Rights Act is in force, you can no longer wait for a fixed term to end. If you want to bring a tenancy to a close, you must follow the legal routes for ending an Assured Periodic Tenancy.
With Section 21 gone for good, the main formal route is Section 8. You must serve a notice that sets out one or more valid legal grounds for possession, such as selling the property, moving back in, or rent arrears, among other things. Note that notice periods for these grounds have changed, with most mandatory grounds now requiring 4 months’ notice.
You can also end a tenancy by mutual agreement at any time. If you and your tenant agree to end the arrangement, you can document this through a written agreement or a deed of surrender, setting a clear end date.
Mutual agreement is often the simplest option as it avoids the need for a court hearing.
Remember, tenants have also gained the right to end the tenancy agreement at any time by giving not more than 2 months’ notice in writing, provided it concludes at the end of a rental period.
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What happens when only one tenant wants to leave?
In a periodic joint tenancy, where all tenants are on a single agreement and “jointly and severally liable”, any one tenant can still end the tenancy for everyone by serving a valid notice to quit.
If one person in a shared household gives 2 months’ notice, the entire tenancy comes to an end for all tenants on that date.
If the remaining tenants want to stay, you will need to agree on a new arrangement and set up a new periodic tenancy with them.
In practice, this makes day-to-day stability within joint tenancies more important, as one person’s decision can affect the whole group. This also makes referencing each individual in a joint group even more important for long-term stability.