From Fixed-Term to Rolling Tenancies: The New Assured Periodic Tenancy System
The Renters’ Rights Act 2025 is transforming how landlords and tenants manage rental agreements across England. A key reform is the move from fixed-term to rolling tenancies under the new Assured Periodic Tenancy system.
This change aims to create a fairer, more flexible rental market, but it also requires landlords to adapt their contracts, procedures, and expectations.
What the Change Is: The Abolition of Fixed-Term Assured Shorthold Tenancies (ASTs) and the Move to Assured Periodic Tenancies
Under the Housing Act 1988, landlords commonly granted fixed-term Assured Shorthold Tenancies (ASTs) lasting either 6 or 12 months. These agreements provided certainty for landlords, allowing rent reviews or possession at the end of the term via Section 21.
However, the Renters’ Rights Act 2025 replaces ASTs entirely with Assured Periodic Tenancies, open-ended agreements that continue until the tenant or landlord ends them lawfully.
This means that every new tenancy created after the implementation date will automatically roll, with no preset end date.
Tenants can leave with appropriate notice, and landlords can only end the tenancy for a statutory ground under Section 8, such as arrears, breach, or sale of the property.
The aim is to provide tenants with security while maintaining landlords’ legitimate rights to recover possession when necessary.
For landlords, this marks the end of the “renewal cycle”, no more chasing tenants to sign annual agreements. Instead, the tenancy continues indefinitely unless properly terminated.
The Impact for Landlords: Notice Periods, Tenant Exit Rights and Landlord Possession Rights
The new Assured Periodic Tenancy system significantly alters both landlord and tenant rights.
Tenant Exit Rights:
Tenants will have the right to leave by serving at least two months’ notice, though the exact period may vary once commencement regulations are confirmed.
This flexibility benefits tenants but may mean landlords receive shorter notice of vacancy, affecting planning and cash flow.
Landlord Notice Requirements:
Landlords will only be able to regain possession through Section 8 grounds, replacing the abolished Section 21 ‘no-fault’ route.
Each ground will require evidence, for example, proof of sale intention or persistent arrears. Notice periods will vary between two weeks and two months, depending on the ground relied upon.
Rent Reviews and Contract Terms:
Because fixed terms will no longer exist, rent increases must follow the statutory Section 13 procedure to ensure transparency and fairness. The British Landlords Association advises members to review their tenancy clauses now to remove outdated references to “fixed terms” and “renewal periods.”
Possession and Court Proceedings:
Landlords should expect a greater reliance on court-based possession proceedings, as tenants can more easily challenge notices.
The government plans to digitise parts of this process to ease delays, but landlords should anticipate longer timelines than under the old system.
When It Comes into Effect: Expected in 2026 (Exact Date to Be Set via Regulation)
Although the Renters’ Rights Act 2025 has received Royal Assent, the Assured Periodic Tenancy system will not take effect immediately. The government has confirmed that the change is expected to come into force during 2026, but the precise date will be established via commencement regulations.
Implementation will likely be phased:
- Stage one: All new tenancies after the commencement date will automatically be Assured Periodic Tenancies.
- Stage two: Existing fixed-term ASTs will convert to periodic status after a transitional grace period, allowing landlords time to adjust documentation and systems.
The Department for Levelling Up, Housing and Communities (DLUHC) will publish official guidance and model documents closer to the effective date. Until then, landlords should continue using compliant AST templates but be ready to transition quickly once the regulations are announced.
Documents Still to Be Issued: Detailed Transition Guidance, Model Tenancy Statements, Landlord Information Sheets
The full implementation of the Assured Periodic Tenancy system depends on several key documents still to be released by the government.
These will clarify the finer details of the transition and ensure consistency across the private rented sector. Expected publications include:
- DLUHC Transition Guidance: Explaining when and how fixed-term agreements will convert to periodic ones.
- Model Tenancy Statements: New prescribed forms setting out key terms, rent review processes, and notice requirements.
- Landlord Information Sheets: Summaries that must be provided to tenants at the start of a tenancy to ensure transparency.
- Updated Possession Grounds Handbook: Detailing all statutory grounds under the revised Section 8 process.
Members of the British Landlords Association (BLA) will receive advance notice and analysis of these documents as soon as they are issued. This support ensures landlords remain compliant and avoid penalties for using outdated agreements.
Checklist for Landlords to Prepare Now
To prepare for the transition from fixed-term to rolling tenancies under the new Assured Periodic Tenancy system, landlords should act early. The BLA recommends the following steps:
- Audit tenancy agreements: Identify all fixed-term ASTs and prepare to convert them when regulations come into force.
- Update templates: Remove clauses referring to “renewal,” “end of term,” and “Section 21 notices.”
- Train staff and agents: Ensure letting teams understand new Section 8 possession grounds and notice rules.
- Strengthen record-keeping: Keep accurate rent statements, inspection records, and communication logs to support any future possession claim.
- Review insurance policies: Check whether landlord insurance covers legal costs under the new system.
- Engage with tenants: Maintain open communication about changes to reassure reliable tenants and prevent disputes.
- Stay informed via the BLA: Members will receive ongoing updates, model documents, and webinars to support compliance.
Landlords who act now will avoid last-minute disruption and maintain smooth operations as the Assured Periodic Tenancy system takes effect.
FAQs
What is an Assured Periodic Tenancy?
It’s a new form of tenancy replacing fixed-term ASTs, continuing indefinitely until ended by the tenant or landlord through a lawful notice.
Can I still offer a 6- or 12-month agreement?
No, once the new system begins, all new tenancies will be open-ended. However, rent reviews can still be scheduled annually.
When will this change happen?
It’s expected in 2026, but the exact date will be confirmed through regulations.
Will tenants still need to give notice to leave?
Yes, tenants must give proper notice —likely 2 months’ notice —before ending the tenancy.
What happens to my existing fixed-term tenants?
They will transition to periodic status once the regulations take effect. The government and the BLA will provide clear guidance.
Conclusion
The move from fixed-term to rolling tenancies under the new Assured Periodic Tenancy system represents a significant step toward long-term tenant security and transparent landlord practices.
While it reduces landlords’ flexibility, careful planning, documentation, and engagement with the British Landlords Association will ensure compliance and continued success in the evolving rental landscape.
Our top-read blogs:
Is Commercial Property a Good Investment in England & Wales?
Commercial Property Rent Review Protocol
Investing in Commercial Property vs Residential Property: The Advantages and Disadvantages
The British Landlords Association is a national landlord association, one of the largest in the UK. The BLA is the only landlords’ association in the UK that represents and supports both commercial and residential landlords. Join us now for £89.95!
Useful External Links
