The End of Fixed-Term Tenancies: What It Means
Fixed-term tenancies are ending under the Renters’ Rights Act. From the 'commencement date', all tenancies will be periodic (rolling month to month), giving tenants more flexibility but leaving landlords with less certainty. What does it mean for your rental income, compliance, and future planning? In this blog, we break it all down...
One of the most significant changes in the Renters’ Rights Act is the abolition of fixed-term assured shorthold tenancies. This will reshape how landlords let and manage their properties, shifting the balance toward flexibility for tenants, but with new considerations for landlords.
🔵 The Current Tenancy System
Until now, most landlords have relied on fixed-term assured shorthold tenancies (ASTs), typically set at 6 or 12 months. This has offered:
🔸 Certainty of income - Rent is locked in for a defined period.
🔸 Clear end dates - Landlords could choose whether to renew, renegotiate, or serve notice at the end of the term.
🔸 Security for both parties - Tenants had reassurance they wouldn’t face a sudden change, while landlords could plan their cashflow.
If no new fixed term was agreed, the tenancy usually rolled into a periodic tenancy, running from month to month.
🔵 What’s Changing Under the Bill?
The Renters’ Rights Act abolishes fixed-term ASTs altogether. Instead, all tenancies will convert to rolling periodic tenancies from the Bill’s commencement date. Here’s what that means:
No more fixed terms
Landlords won’t be able to issue 6 or 12 month contracts. All new and existing ASTs will become periodic, renewing automatically each month until ended.
Tenants can leave with 2 months’ notice
Tenants will gain the flexibility to leave a property at any point by giving two months’ notice - even if they’ve only been there a short time.
Landlords must rely on statutory grounds
Without fixed terms, landlords can no longer “wait out” a tenancy. Ending it will require valid grounds under Section 8 (such as arrears or wanting to sell).
End of ‘default renewals’
The cycle of offering tenants a new fixed-term contract each year will end. Rent increases, too, must follow the statutory Section 13 process instead.
🔵 What This Means for Landlords
The end of fixed-term tenancies removes a long-standing tool landlords have relied on for both security and structure. Here’s how the shift may affect you in practice:
Reduced security of tenure
With tenants able to leave at any point on two months’ notice, landlords lose the guaranteed rental income that came with a 6- or 12-month contract. This makes long-term cash flow forecasting more uncertain, particularly for landlords managing multiple properties or with high mortgage commitments.
Higher risk of voids
Shorter notice periods could increase turnover, and void periods may become more common if tenants decide to move quickly. Even reliable tenants may feel freer to shop around for cheaper rents or better properties.
End of automatic renewals
Many landlords currently rely on fixed-term renewals as a natural opportunity to reset rents and renegotiate terms. With this option gone, landlords must adapt to the new Section 13 rent increase process and more structured negotiations.
Dependence on possession grounds
Without the ability to “let the fixed term expire,” landlords will need to rely on the statutory Section 8 grounds for possession. This makes understanding - and evidencing - those grounds essential. For example, wanting to sell or move back into the property are legitimate, but must be properly documented.
Shift in tenant behaviour
Tenants may treat properties more like flexible living arrangements. Some may move more often, while others may feel more empowered to negotiate improvements or rent levels, knowing they aren’t tied down.
Compliance under the spotlight
With fixed terms gone, landlords must ensure that every part of their tenancy management - from referencing to rent increases to ending a tenancy - is watertight. Any misstep could result in disputes, delays, or financial loss.
🔵 How Landlords Can Prepare
Landlords who plan ahead will be best placed to handle this shift smoothly. Here are practical steps to take now:
Review your portfolio strategy
Consider which properties may be more vulnerable to higher turnover. For example, student lets, HMOs, or properties in highly competitive rental markets may see greater tenant movement. Adjust your pricing, management style, and void planning accordingly.
Strengthen tenant referencing
With tenants free to leave sooner, it’s more important than ever to choose tenants carefully. Go beyond basic credit checks - assess stability of employment, rental history, and long-term housing intentions. A strong upfront process reduces the risk of unexpected departures.
Get to grips with Section 8
Familiarise yourself with all the grounds for possession, including updated ones in the Bill such as arrears and wanting to sell or move family in. Keep records up to date so you can act quickly and lawfully if you need to regain possession.
Reframe rent reviews
Since you won’t have the natural “renewal” point, plan your rent increases using the Section 13 process. Keep comparables on file, research the local market regularly, and schedule reviews well in advance to maintain income.
Plan financially for more flexibility
Build a financial buffer to absorb the risk of tenants leaving with little notice. This may mean keeping an emergency fund for mortgage payments, repairs, or voids. Some landlords may also look at products like rent guarantee insurance for added peace of mind.
Proactive tenant communication
alk openly with tenants about the changes and what they mean. Clear communication can build loyalty and reduce unnecessary turnover. Tenants who feel valued are less likely to move at the first opportunity.
Professional support
Consider whether a letting agent can help navigate the added compliance. With less margin for error, professional advice and systems could save money in the long run.
🔵 Final Word
The abolition of fixed-term tenancies marks a fundamental shift in the rental landscape. While tenants gain more control, landlords will need to adapt with stronger processes, better tenant selection, and a sharper focus on compliance. By planning now, you can continue to run a successful portfolio in a more flexible but regulated environment.
Do not hesitate to contact us should you wish to discuss any aspect of letting your property.
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