Periodic Tenancies — A Practical Guide

Version 1.0 · Published 2 Apr 2026

Periodic Tenancies — A Practical Guide

Quick Reference

Essential Points for Letting Agents:

From 1 May 2026, all assured tenancies become periodic — fixed-term assured shorthold tenancies (ASTs) are abolished
Section 21 'no fault' evictions end on the same date — landlords can only evict using valid Section 8 grounds
Tenants gain flexibility — they can end tenancies with two months' notice at any time
CRM systems must be updated — rent review dates, compliance reminders and triggers previously linked to fixed terms need reconfiguring
All existing and new tenancies move to the new system on 1 May 2026, regardless of when they were signed

Overview

The Renters' Rights Act 2025 received Royal Assent on 27 October 2025 and introduces the most significant shift to tenancy law in a generation. At its heart is the replacement of assured shorthold tenancies (ASTs) with assured periodic tenancies (APTs) as the standard agreement for the private rented sector.

This change fundamentally alters how tenancies operate. Fixed-term agreements, which have been the norm for decades, will no longer exist for assured tenancies. Instead, all tenancies will run on a periodic basis, giving tenants the right to remain in their home indefinitely (subject to valid possession grounds) and the flexibility to leave with two months' notice.

For letting agents, this represents a fundamental operational shift requiring changes to systems, processes, documentation and staff training.

Key Changes Taking Effect 1 May 2026

Abolition of Fixed-Term Tenancies

From 1 May 2026, all assured tenancies in the private rented sector will be periodic. This applies to:

All new tenancies created on or after 1 May 2026
All existing tenancies, including those currently on fixed terms

There is no transitional period or phased implementation for different tenancy types — the change happens in one stage for all tenants simultaneously.

End of Section 21 'No Fault' Evictions

Section 21 of the Housing Act 1988 will be abolished. Landlords will no longer be able to evict tenants without providing a valid reason. Instead, landlords must use Section 8 possession grounds, which require:

A legitimate reason for possession (e.g., rent arrears, anti-social behaviour, landlord moving in, property being sold)
Proper notice periods
Court proceedings in most cases

Enhanced Tenant Flexibility

Under periodic tenancies, tenants can end their tenancy at any time by giving two months' notice. This removes the obligation to pay rent for the remainder of a fixed term, even if circumstances change (such as relationship breakdown, new employment, or purchasing a home).

Rent Increase Limitations

Landlords will be limited to one rent increase per year in the private rented sector. Rent increases must be conducted via Section 13 notices, following proper procedures and timescales.

Additional Phase One Reforms

Also taking effect on 1 May 2026:

Limits on rent in advance — restrictions on how much rent can be requested upfront
Ban on rental bidding — tenants cannot be encouraged to offer more than the advertised rent
Strengthened anti-discrimination measures — new protections against discriminatory practices
New rights around pets — landlords cannot unreasonably refuse pets; they may request up to three weeks' additional deposit for pet damage

What This Means for Agents

Operational Impact

CRM and Software Systems

Many existing processes are triggered by fixed-term tenancy dates. With the move to periodic tenancies, agents must review their systems to ensure:

Rent review dates are not lost when fixed-term end dates disappear
Compliance reminders (gas safety, EICR, EPC renewals) continue to trigger appropriately
Rent-in-advance processes are reconfigured for periodic structures
Renewal workflows are replaced with ongoing tenancy management processes

Documentation and Agreements

New tenancy agreements reflecting periodic terms must be prepared
Existing template documents requiring fixed-term references need updating
Written information requirements for tenants must be reviewed and updated

Portfolio Management

Agents should review their entire portfolio now to understand:

Which tenancies will transition on 1 May 2026
Current rent review dates and how to maintain them
Landlord expectations and communication needs

Team Readiness

Different roles within the business will be affected differently:

Negotiators — must explain the new system to prospective tenants and landlords
Property managers — need to understand ongoing tenancy management without fixed terms
Administrators — require updated processes for documentation and compliance tracking
Compliance leads — must ensure all systems maintain regulatory requirements

Each role requires tailored guidance and training to navigate the transition effectively.

Landlord Relationships

Agents must proactively communicate with landlords to:

Explain how periodic tenancies work and what protections remain
Reassure them about possession grounds and legitimate eviction routes
Discuss rent review strategies in the absence of fixed-term renewals
Address concerns about tenant flexibility and notice periods

Practical Steps to Take Now

Immediate Actions (Before 1 May 2026)

Audit your CRM system
Identify all processes linked to fixed-term end dates
Plan how rent reviews, compliance checks and other triggers will work under periodic tenancies
Test new workflows before go-live
Review and update documentation
Prepare new assured periodic tenancy agreements
Update landlord terms of business
Revise tenant information packs
Check all template letters and notices
Analyse your portfolio
Create a register of all current tenancies and their status
Note rent review dates and ensure they're preserved in your new system
Identify any landlords who may need additional support
Train your team
Provide role-specific guidance on the changes
Conduct scenario-based training (e.g., handling landlord questions, explaining tenant rights)
Ensure all staff understand possession grounds and proper procedures
Communicate with stakeholders
Send clear, factual updates to landlords explaining the changes
Prepare FAQs for tenants
Consider hosting webinars or information sessions

Ongoing Compliance

Stay informed — ensure you're receiving Propertymark newsletters and legislative updates
Document everything — maintain detailed, time-stamped records, particularly for inventory and property condition
Monitor further phases — Phase Two (late 2026) will introduce the Landlord Ombudsman and PRS Database; Phase Three (TBC, consultation expected 2035–2037) will cover Decent Homes Standard and Awaab's Law

Frequently Asked Questions

Q: What happens to existing fixed-term tenancies on 1 May 2026?

A: All existing tenancies automatically become assured periodic tenancies on 1 May 2026, regardless of when they were signed or whether they're currently in a fixed term. There is no transitional period.

Q: Can landlords still increase rent?

A: Yes, but only once per year using the Section 13 notice procedure. Rent increases must follow proper legal processes and timescales.

Q: How can landlords regain possession without Section 21?

A: Landlords must use Section 8 possession grounds, which have been reformed and expanded. Valid grounds include rent arrears, anti-social behaviour, landlord moving in, property being sold, and others. The Act introduces new safeguards giving tenants more time to find alternative accommodation in certain circumstances.

Q: Will periodic tenancies reduce landlord confidence?

A: The Act provides clearer and expanded possession grounds to ensure landlords can recover their property when they have a legitimate reason. Propertymark continues to engage with government to ensure reforms maintain landlord confidence while providing tenant security.

Q: Do we need new tenancy agreements for all existing tenants?

A: While existing tenancies automatically become periodic by law, best practice suggests issuing updated documentation to reflect the new terms and ensure all parties understand their rights and responsibilities.

Q: What about student tenancies?

A: Ground 4a has been extended to cover one- and two-bedroom student properties, allowing landlords in student markets to better manage properties around academic cycles.

Q: When do other reforms take effect?

A: Phase One (1 May 2026) covers tenancy reform. Phase Two (late 2026) will introduce the Landlord Ombudsman and PRS Database. Phase Three (TBC) will cover Decent Homes Standard and Awaab's Law, with consultation expected 2035–2037.

Further Resources

Propertymark Members should:

Check communication preferences to receive newsletters and legislative updates
Access the Renters' Rights Act Toolkit, which includes four guides covering key changes
Watch webinar recordings covering written information requirements, payment processes, rent increases, possession grounds and internal systems
Review role-specific guidance for negotiators, property managers, administrators and compliance leads

Key Message: Businesses that prepare early will be better placed to manage the transition smoothly and continue delivering compliant services to landlords and tenants. With clear documentation, robust processes and proactive planning, agents can approach 1 May 2026 with confidence.

This guide is based on the Renters' Rights Act 2025 and implementation guidance current as of the date of publication. Agents should continue to monitor official sources for updates and detailed regulations.