Periodic Tenancies Explained for UK Landlords (2026)

The landscape of residential tenancies in England is undergoing significant reform, with the Renters' Rights Act 2025 bringing about substantial changes, particularly concerning how periodic tenancies operate. For UK landlords, understanding these new rules is crucial for compliance and for fostering stable relationships with their tenants.

Historically, assured shorthold tenancies (ASTs) often began with a fixed term, rolling into a periodic tenancy thereafter. The new legislation, however, shifts the paradigm, largely doing away with fixed-term tenancies in their traditional sense. Instead, all new tenancies will fundamentally operate as periodic, meaning they run from month to month or week to week from the outset, without an end date unless the tenant chooses to leave or the landlord can obtain possession on specific, legally defined grounds. This article breaks down what periodic tenancies mean for you in 2026 and how to navigate the changes.

The New Normal: Periodic From Day One

Under the Renters' Rights Act, the concept of a fixed-term tenancy is largely abolished for new agreements. All new assured tenancies will be periodic from the start. This move is designed to give tenants greater security and flexibility, allowing them to give two months' notice to end a tenancy at any point, without being tied into a fixed contract.

Who This Applies To

These changes will apply to all new assured tenancies entered into from the date the relevant provisions of the Renters' Rights Act come into force. Existing assured shorthold tenancies will transition to the new system once their current fixed term expires, effectively becoming periodic tenancies governed by the new rules. The government has indicated a phased implementation, with new tenancies being subject to the changes first, followed by existing tenancies.

Tenant's Right to Terminate a Periodic Tenancy

One of the most significant changes for landlords is the tenant's increased flexibility to end a tenancy. Under the new regime, tenants will have the right to give two months' notice to end their periodic tenancy at any time, once the relevant provisions of the Act are in force. This notice period must be in writing. This contrasts with the previous system where tenants were usually locked into a fixed term or had to give notice according to the tenancy agreement if it had become periodic.

Landlord's Notice Periods and Grounds for Possession

The Renters' Rights Act abolishes 'no-fault' evictions under Section 21 of the Housing Act 1988. This means landlords will no longer be able to evict tenants simply by providing two months' notice without a specific reason. Instead, landlords will need to rely on the reformed grounds for possession, which will be set out in Schedule 2 of the Housing Act 1988. These grounds are either mandatory (meaning the court must grant possession if the ground is proven) or discretionary (meaning the court may grant possession).

Examples of grounds for possession include:

• Mandatory: Tenant arrears (if the tenant has been in significant arrears for a specified period), the landlord intends to sell the property, the landlord or a close family member intends to move into the property, or the property is required for a religious minister.
• Discretionary: Breach of tenancy agreement (other than rent arrears), anti-social behaviour, or damage to the property.

The notice periods required for these grounds will vary depending on the specific ground being used, and can range from two weeks to two months or more. Landlords must ensure they serve valid notice in the prescribed form.

Rent Increases in a Periodic Tenancy

Rent increases under the new periodic tenancy regime will be subject to strict rules. Landlords will only be able to increase rent once every 12 months. This must be done via a Section 13 notice (notice of increase of rent) and must give the tenant at least two months' notice of the proposed increase. Tenants will have the right to challenge unreasonable rent increases at a First-tier Tribunal (Property Chamber).

Crucially, landlords cannot implement a rent increase more frequently than annually. Any attempt to do so will be invalid. The aim is to provide greater predictability and stability for tenants regarding their housing costs.

Key Dates and Implementation Timeline

The Renters' Rights Act 2025 will be implemented in phases. While specific dates are subject to parliamentary timing, the general approach is:

• Phase 1: New tenancies will be brought under the new periodic tenancy regime first, along with the abolition of Section 21 for these new tenancies.
• Phase 2: Existing periodic tenancies will transition to the new system, and Section 21 will be abolished for all remaining assured shorthold tenancies. This transition will often occur following the expiry of any remaining fixed term.

Landlords should stay informed about the exact commencement dates, which will be announced by the government. It's safe to assume that by 2026, a significant proportion of tenancies will be operating under these new rules.

Penalties for Non-Compliance

Failing to comply with the new periodic tenancy rules and associated regulations can lead to serious consequences for landlords. Whilst the Act abolishes Section 21 notices, improperly served Section 8 notices (based on the new grounds) can still be challenged by tenants, leading to delays and legal costs if possession is not granted.

• Unlawful Eviction: Attempting to evict a tenant without a valid ground or proper court order can lead to substantial penalties. This can include fines of up to £50,000, imprisonment, and compensation payments to the tenant. The local authority may pursue prosecution, or the tenant may bring a civil claim.
• Invalid Rent Increases: Rent increases not served correctly or more frequently than annually will be unenforceable. The tenant will not be obliged to pay the increased rent, and any overpayment could be reclaimable by the tenant.
• Property Ombudsman: Once mandatory, failure to comply with an Ombudsman's redress can result in referral to local authorities for enforcement actions or monetary penalties.

Practical Checklist for Landlords

To ensure you are fully compliant with the new periodic tenancy rules, consider the following:

• Review Your Tenancy Agreements: Ensure all new tenancy agreements reflect the periodic nature of the tenancy from the start and incorporate the new legal requirements. Consider seeking legal advice to update your contracts.
• Understand New Grounds for Possession: Familiarise yourself thoroughly with the reformed grounds for possession. Know when and how to apply each ground and the required notice periods. Do not rely on 'no-fault' evictions.
• Rent Increase Policy: Establish a clear policy for annual rent reviews, ensuring you only propose increases once every 12 months and serve a valid Section 13 notice with adequate notice to the tenant.
• Communication with Tenants: Maintain open and clear communication with your tenants, particularly regarding their right to give two months' notice to end the tenancy.
• Deposit Protection: Continue to protect deposits in a government-authorised scheme and provide prescribed information to the tenant within 30 days.
• Safety Certificates: Ensure all gas safety certificates, electrical safety reports (EICR), and EPCs are up-to-date and provided to tenants. These remain crucial for compliance and for validly serving Section 8 notices (where applicable).
• Energy Performance Certificate (EPC): Be aware of potential future changes to minimum EPC ratings for tenanted properties. While not directly related to periodic tenancies, it's a vital compliance area.
• Right to Request Pets: Familiarise yourself with the new tenant's right to request to keep a pet, which landlords cannot unreasonably refuse.

Common Mistakes to Avoid

• Assuming Business as Usual: The most significant mistake is to believe that the previous tenancy framework will continue. The changes are fundamental.
• Incorrect Notice Periods: Serving incorrect notice periods for rent increases or possession claims can invalidate your actions and lead to significant delays and costs.
• Trying to Evict Without Grounds: Attempting to remove a tenant without a legally valid ground for possession will almost certainly fail in court and could lead to accusations of unlawful eviction.
• Ignoring Tenant Challenges: Tenants have new avenues to challenge rent increases and possession claims. Ignoring these challenges can escalate issues.
• Not Documenting Everything: Always maintain meticulous records of all communications, notices served, safety certificates, and any issues related to the tenancy.

What to do this week

• Bookmark the official government guidance on the Renters' Rights Act as it becomes available.
• Review your current tenancy agreement template to identify areas needing amendment for the new periodic tenancy structure.
• Familiarise yourself with the proposed new grounds for possession under Schedule 2 of the Housing Act 1988 (as amended).
• Plan your strategy for future rent reviews to ensure compliance with the annual increase limit and notice requirements.
• Check expiry dates for your gas safety certificates and EICRs and book renewals well in advance.