When Do Fixed-Term ASTs Convert to Periodic Tenancies?

With the ongoing legislative changes reshaping the rental sector in England, landlords and tenants alike are grappling with how existing tenancy agreements will be affected. A pressing question at the forefront of discussions is: when do fixed-term ASTs convert to periodic tenancies?

The transition from fixed to periodic tenancies is central to the Renters’ Reform Bill, particularly as it seeks to simplify tenancy structures and remove the existing Section 21 no-fault eviction process.

This article provides a comprehensive breakdown of the likely scenarios in which fixed-term assured shorthold tenancies (ASTs) will convert to periodic tenancies, as well as the implications for both landlords and tenants.

We explain how the proposed changes will work in practice, and what stakeholders should do now to prepare for the shift.

Understanding the Current System of ASTs

A fixed-term AST is a tenancy agreement that runs for a specified period, typically six or twelve months. During the fixed term, both landlord and tenant are contractually bound by the agreement. Once the fixed term expires, the tenancy may:

• Be renewed for another fixed term.
• Be allowed to continue informally as a periodic tenancy (usually month-to-month), or
• Be terminated by either party, subject to notice requirements.

Under the current Housing Act 1988, most residential tenancies are ASTs, which provide a degree of Flexibility and security for landlords. A landlord can recover possession after the fixed term ends by serving a Section 21 notice, without needing to establish fault. This, however, is set to change.

What Will Change Under the Renters’ Reform Bill?

The Renters’ Reform Bill, introduced by the UK Government, proposes significant reforms to England’s private rented sector. At its heart lies the abolition of fixed-term ASTs.

Instead, all tenancies will become periodic by default, offering more Flexibility for tenants and more predictability for landlords over time.

The proposed system will remove Section 21 evictions and require landlords to use valid grounds (e.g. sale of the property, repeated rent arrears) under Section 8 if they wish to repossess.

Therefore, the key question arises: when do fixed-term ASTs convert to periodic tenancies?

When Do Fixed-Term ASTs Convert to Periodic Tenancies?

The Government has clarified that the conversion process will not be instantaneous upon enactment. Instead, a transition period will be implemented, allowing both landlords and tenants sufficient time to adjust to the new arrangements. The Bill states that:

• New tenancies created after the enactment of the Bill will be periodic from the outset.
• Existing fixed-term ASTs will remain in place until the fixed term expires.
• Once the fixed term ends, the tenancy will automatically convert to a periodic tenancy—without requiring a new agreement.

This timeline gives a clear answer to the question: when do fixed-term ASTs convert to periodic tenancies? It happens after the current fixed term ends, not immediately upon enactment.

For example, if a fixed-term tenancy runs from January 2025 to January 2026, and the Bill comes into force in March 2025, that tenancy will remain fixed until January 2026. Only then will it convert to a periodic function.

What About Periodic Tenancies That Already Exist?

Tenancies that have already become periodic by the time the Bill comes into force will automatically be subject to the new framework.

They will be treated as new-style rolling periodic tenancies under the updated legislation, meaning landlords will need to have valid grounds for possession and will be required to follow the new notice periods and procedures.

This means landlords cannot rely on legacy Section 21 notices for any tenancy, whether fixed-term or periodic, once the transition period ends.

Will This Affect Landlords’ Strategies?

Many landlords currently favour fixed-term tenancies as they provide a level of control, predictability of income, and protection from sudden tenant departure. However, the new rules will require an adjustment in strategy:

• No More Section 21: Landlords must prepare to use Section 8 and prove valid grounds to evict.
• No New Fixed Terms: All tenancies after the transition will be rolling periodic, with tenants having months of notice, typically two months.
• Long-Term Planning: Landlords may need to become more selective during tenant screening to reduce the risk of issues that would otherwise be managed through fixed-term structures.

The loss of fixed terms also means landlords cannot easily tie tenants into more extended contracts.

This could lead to shorter tenancies overall, higher turnover, and increased void periods unless properties are in high-demand areas.

Should Landlords Avoid Starting New Fixed-Term Tenancies Now?

This is a strategic decision that depends on when the Bill will be enacted and your risk profile.

Some landlords may still prefer to enter into fixed-term agreements in the short term to retain control and stability until the legislation takes full effect. Others may begin phasing in periodic arrangements to prepare for the inevitable.

It is essential to note that even fixed-term tenancies signed today will eventually come to an end.

Therefore, when do fixed-term ASTs convert to periodic tenancies? The answer is unchanging: they convert at the end of the fixed term, whenever that occurs post-enactment.

Implications for Tenants

Tenants stand to gain significantly from the move toward periodic tenancies:

• Increased Flexibility: months leave with two months’ notice at any time.
• Fewer Restrictions: rent terms mean they aren’t bound to remain in a property for a year or more if circumstances change.
• Enhanced Security: Landlords must adhere to stricter rules to regain possession of their properties.

However, tenants should also be aware of the grounds on which landlords may now seek possession, including anti-social behaviour or repeated late rent payments.

The new regime shifts the balance of power, but it also places greater responsibility on tenants to maintain tenancy standards.

FAQs on the Conversion to Periodic Tenancies

Will I need to sign a new agreement when my fixed term ends?

No. The tenancy will automatically become periodic under the new law.

Can a landlord force me into a new fixed term before the law changes?

A landlord can offer one, but tenants are not legally required to accept it once the new rules come in. After enactment, all new agreements must be entered into periodically.

Will existing fixed-term ASTs be void under the new law?

No. They will remain valid until expiry. The change applies after the term ends.

What if a fixed-term tenancy ends just before the new law takes effect?

It will likely become a periodic tenancy under current law, and then be subject to the new rules once the Bill is implemented.

How much notice do tenants have to give under the new periodic tenancies?

Two months, at any time, unless a longer period is agreed upon with the landlord.

Preparing for the Transition

Both landlords and tenants should prepare for the change in the following ways:

• Landlords should begin reviewing tenancy agreements, updating possession procedures, and familiarizing themselves with Section 8 grounds.
• Tenants should understand their new rights, especially regarding notice and eviction, and keep written records of all tenancy-related communications.

Landlords may also wish to join accredited landlord associations for guidance, legal templates, and updates on regulatory changes. Tenants can consult with tenant advisory services or Citizens Advice.

Conclusion: Clarity on a Key Transition

To answer the central question: when do fixed-term ASTs convert to periodic tenancies? They convert only after the Renters ‘ rent fixed term ends, not upon the Renters’ Reform Bill coming into force.

Fixed-term ASTs signed before enactment will remain in place until expiry. Once the fixed period ends, those agreements will automatically become periodic tenancies under the new legal framework.

This change marks a substantial shift in the private rental market. Both parties must now prepare for a future where Flexibility replaces formality and where grounds-based eviction becomes the new standard.