With the Renters’ Rights Act 2025 receiving Royal Assent on 27 October 2025, England is transitioning from fixed-term assured shorthold tenancies (ASTs) to a single model of assured periodic tenancy. No-fault evictions will be abolished on a phased commencement timetable. In practice, this means most private rented homes will be on rolling contracts tied to the rent period, with clearer possession grounds and firmer rules on rent setting.
How periodic tenancies will work
Under the new regime, tenancies are periodic from day 1. Tenants can leave at any time by giving 2 months’ notice aligned to the rent period. Landlords seeking possession must rely on statutory grounds (the re-worked Section 8 menu), such as selling the property, genuine intention to move in, persistent rent arrears or anti-social behaviour. Notice lengths and evidential thresholds vary by ground, so meticulous record-keeping becomes essential.
Rent increases are capped at once per year and must follow the Section 13 process. Landlords must give at least 2 months’ notice, and tenants can challenge at the First-tier Tribunal, which will set a market-reflective figure (without increasing it above the landlord’s proposal). Expect more scrutiny of comparables, property condition and any mid-tenancy improvements when justifying a review.
Commercial implications for landlords
- Cash flow and void planning: Without fixed end-dates, predictability reduces. Sensible modelling—e.g., allowing 3–4 weeks’ voids and a small maintenance uplift—helps preserve net yield.
- Pricing discipline: Annual reviews via Section 13 reward good evidence. Maintain an audit trail of works, inventories and dated photos to support rent levels and defend challenges.
- Exit strategy: If you may sell or move in within 12–24 months of commencement, plan early. Align lender and insurer notifications, line up proof of intent (marketing materials or declarations), and understand the specific notice period for your chosen ground. Our landlord and tenant team can advise on the right approach for your situation.
Operational implications for letting agents
- Pipeline smoothing: Fewer fixed expiries means fewer predictable changeovers. Shift to always-on marketing, faster lead response and nurtured applicant pools to reduce re-let time.
- Compliance cadence: Rolling tenancies raise the stakes on safety and paperwork—gas, EICR, alarms, deposit protection and right-to-rent follow-ups. Use a compliance calendar and automate reminders.
- Clear onboarding: Give plain-English packs explaining 2-month tenant notice, annual rent-review rules, repairs access, arrears processes and how possession grounds work. Transparent expectations reduce complaints and tribunal risk.
Student lets and niche segments
Existing fixed terms will convert to periodic on the switchover date (subject to transitional rules). Student markets—historically built around 9–12 month fixed terms—should watch commencement regulations closely and review HMO licensing, guarantor wording and pricing assumptions for term-time versus full-year occupancy.
Licensing / rent deposits / prescribed information / GSC
- Licensing (incl. HMO/selective): Check whether the property requires a mandatory HMO, additional or selective licence and keep it current. Periodic tenancies don’t remove licensing duties—changes in occupancy or property layout can trigger new licence conditions, inspections or variations. Keep licence numbers, expiry dates and compliance evidence on file.
- Rent deposits: Protect deposits with an approved scheme within 30 days of receipt and retain proof. For tenant swaps or top-up deposits during a periodic term, re-check scheme rules—re-protection or updates may be required. Non-compliance risks financial penalties and weakens your position in arrears or possession cases.
- Prescribed information: Serve the scheme’s prescribed information within 30 days and re-serve if any particulars change (e.g., scheme, parties, landlord address). Keep signed acknowledgements with your onboarding pack to evidence service.
- GSC (Gas Safety Certificate): Provide a valid certificate before occupation and renew annually (12 months). Maintain access logs for appointments, and store digital copies alongside EICR, alarm checks and servicing records. Missed or late certificates increase enforcement risk—use automated reminders aligned to the rent period.
Practical steps to prepare now
- Update agreements: Move to assured periodic templates reflecting Section 13 reviews, repairs access, inspections, pets and conduct.
- Evidence everything: Keep contemporaneous notes, rent ledgers and inspection photos to support any future possession or rent case.
- Refresh tenant communications: Explain how periodic tenancies operate, how and when rents are reviewed, and what “good conduct” entails.
- Stress-test finances: Model shorter tenancies, small voids and legal costs so yields remain resilient.
- Raise property standards: Well-presented homes re-let faster, reduce disputes and justify market-level rents.