Fixed-Term vs Periodic Tenancy in England (2026): Why Fixed Terms Are Now Gone

If you are weighing up a fixed-term vs periodic tenancy in England in 2026, there is one fact that changes everything: you no longer get to choose. Since the Renters’ Rights Act 2025 came into force on 1 May 2026, you cannot grant a fixed-term assured shorthold tenancy at all. Every new and existing assured tenancy is now an assured periodic tenancy that rolls on month to month (or however often rent is payable) until it is lawfully ended. The old “12-month AST” is history.

That single change reshapes how you let, how you raise rent, how you regain possession, and how you market a property. This guide explains the difference between the two structures, exactly why fixed terms were abolished, how existing tenancies were converted, a worked example of the new model in action, and the practical steps England landlords should take to update their paperwork and their thinking.

Fixed-term vs periodic tenancy: the core difference

Before May 2026, the two structures sat side by side, and most landlords used a mix of both over the life of a let.

• Fixed-term tenancy, let for a set period (commonly 6 or 12 months) with a defined start and end date. Neither party could normally end it early without a break clause. When the term expired, it either renewed by signing a new agreement or rolled automatically into a “statutory periodic tenancy” under section 5 of the Housing Act 1988.
• Periodic tenancy, runs from one rent period to the next with no end date, continuing indefinitely until properly terminated by notice or possession.

The decisive practical difference was always commitment and exit. A fixed term locked the tenant in (good for income certainty) but also tied the landlord’s clean exit to the no-fault Section 21 route, which only worked once the term had run. A periodic tenancy offered flexibility but felt less secure to landlords who relied on a guaranteed minimum term.

The Renters’ Rights Act 2025 has removed that choice entirely. There is now only one model, and understanding it is the foundation of staying compliant. For the definitions in plain English, see what is a periodic tenancy in England? The 2026 Renters’ Rights Act explained.

What “periodic” actually means in practice

A periodic tenancy is defined by its rent period, not by a calendar end date. If rent is paid monthly, each “period” is one month; the tenancy simply renews itself at the start of each period without anyone signing anything. There is no expiry, no renewal letter, and no point at which the tenancy lapses into a weaker legal position for either side. It carries on, on the same terms, until the tenant gives notice or the landlord obtains possession on a valid ground.

Why fixed terms were abolished

The Government’s stated aim in the Renters’ Rights Act 2025 was to rebalance security of tenure towards tenants while removing the “no-fault” eviction mechanism. Fixed terms and Section 21 were two sides of the same coin, so both went together.

The key reasons:

1. Section 21 is abolished. With no-fault eviction gone (see Section 21 abolished: what landlords need to know in 2026), the main purpose of a fixed term, guaranteeing the landlord could end the tenancy cleanly at the end of the term, disappeared.
2. Tenants gain flexibility. Under the periodic model, a tenant can leave any tenancy by giving two months’ notice, rather than being trapped for the remainder of a fixed term or paying a penalty to break it early.
3. Simplicity and consistency. A single tenancy type removes the confusing patchwork of contractual periodic, statutory periodic and fixed-term arrangements that landlords, tenants and the courts had to navigate.
4. Ending “lock-in” rent traps. Long fixed terms with built-in stepped rent reviews could trap tenants in escalating costs. The Act replaces all of that with one route to raise rent.

You can read the legislation itself on legislation.gov.uk and the Government’s landlord guidance on GOV.UK.

What a periodic assured tenancy looks like in 2026

Under the new regime every assured tenancy:

• Has no end date, it continues until ended lawfully.
• Runs on periods of no longer than a month (rent payable weekly or monthly; you cannot demand rent more than one month in advance, or one period in advance for weekly rent).
• Can be ended by the tenant on two months’ notice, at any time, in writing.
• Can be ended by the landlord only on a valid ground under Section 8, using the current prescribed form on GOV.UK. The grounds carry different notice periods, for example Ground 1A (landlord intends to sell) and Ground 2 (mortgage repossession) require four months’ notice, while the serious rent-arrears Ground 8 (three months’ or 13 weeks’ arrears) requires a shorter period.
• Has rent increased only via the Section 13 process, once per year, using the current prescribed form on GOV.UK. Contractual rent-review clauses are now banned, and if the tenant challenges the increase, the First-tier Tribunal cannot set the rent any higher than the figure the landlord proposed.

There is no “renewal” anymore, the tenancy simply continues. That alone removes a large slice of the admin landlords used to handle every 6 or 12 months. For a deeper walk through the possession grounds, see Section 8 notice explained: how landlords regain possession in England (2026).

Comparison table: old fixed-term AST vs new periodic assured tenancy

How existing fixed-term tenancies were converted

A common worry in the run-up to May 2026 was: “What happens to the 12-month tenancy I signed in January?” The answer is that the Act converted it automatically. On the commencement date, every existing assured shorthold tenancy, whether mid-fixed-term or already periodic, became an assured periodic tenancy by operation of law.

Practically, that means:

• The tenancy did not end and did not need re-signing. The tenant stayed put on the same rent and the same core terms.
• Any remaining fixed period fell away. If your tenant was six months into a 12-month term, they were no longer bound for the remaining six months; they could give two months’ notice like anyone else.
• Section 21 clauses became inoperative. Any wording in the agreement referring to Section 21, fixed-term expiry, or automatic renewal simply stopped having legal effect.
• Rent-review clauses became void. A stepped or index-linked rent-review clause can no longer be relied on; rent now moves only by Section 13.

Your old paperwork is not unlawful to possess, but it is misleading to issue to a new tenant, and several of its clauses are now unenforceable. The cleanest course is to replace the template entirely.

A worked example: the Hartley Road flat

To see how the periodic model plays out, take a concrete case.

Priya owns a two-bed flat on Hartley Road and lets it to a couple, Sam and Dani, at £1,200 per month. Under the old world she would have signed them onto a 12-month fixed-term AST. In 2026 she instead grants an assured periodic tenancy with monthly periods.

• Month 1. The tenancy begins on 3 March 2026. There is no end date written into the agreement. Priya takes one month’s rent and a deposit of five weeks’ rent (£1,384.62), which she protects in an authorised scheme within 30 days.
• Month 7. Dani is offered a job in Leeds. Under a fixed term they would have been stuck or facing an early-exit charge. Instead, Dani and Sam serve two months’ written notice. The tenancy ends cleanly at the end of the second full month, and Priya re-markets the flat.
• A different scenario, rent increase. Suppose the couple stay. After 12 months Priya wants to raise the rent to £1,260. She cannot rely on a review clause (banned). She must serve the current prescribed Section 13 form on GOV.UK, giving at least the statutory notice, and she can do this only once a year. If Sam and Dani think £1,260 is above market, they can refer it to the First-tier Tribunal, which, crucially, cannot set the rent higher than the £1,260 Priya proposed. The worst case for the tenants is paying what she asked; the worst case for Priya is the tribunal pegging it lower.
• A different scenario, arrears. Suppose instead the rent stops. If arrears reach three months (or 13 weeks), Priya can serve a Section 8 notice citing the mandatory arrears ground using the current prescribed form on GOV.UK, then apply to court for possession if the debt is not cleared.

In none of these scenarios does a fixed term feature. The periodic model handles every outcome.

Common myths to drop

• “I can still offer a 12-month AST.” No. Fixed-term assured shorthold tenancies can no longer be granted. Marketing a “12-month contract” is misleading and the term would not bind the tenant.
• “A periodic tenant can be evicted easily.” No. A landlord still needs a valid Section 8 ground and must follow the correct notice and court process.
• “I lose all income security.” Not entirely. Serious rent arrears remain a mandatory ground, and you can still reference applicants thoroughly and require a guarantor where justified, see do I need a guarantor for my tenancy?.
• “My existing fixed term is void.” No, existing tenancies converted to the new periodic system on the commencement date; they did not vanish. But the old terms about fixed periods and Section 21 no longer have effect.
• “Periodic means weekly rent and constant churn.” No. Most periodic tenancies run on monthly periods, and good tenants stay for years exactly as they did before.

Does losing fixed terms hurt landlords?

It is easy to read the abolition of fixed terms as a loss, but the practical reality is more balanced.

What you give up

• The guaranteed minimum income of a locked-in term. A tenant can now leave on two months’ notice from day one.
• The ability to “reset” the relationship at the end of a term by re-signing or declining to renew.

What you keep, and gain

• No renewal cycles. No end-of-term negotiations, no re-issuing agreements, no statutory-periodic confusion.
• One consistent tenancy type across your whole portfolio, which is far easier to administer and track.
• Your strongest protections survive. Thorough referencing, a guarantor where justified, deposit protection, and the rent-arrears grounds all remain.
• Two months’ notice from a leaving tenant still gives you a reasonable window to re-let and reduce voids, see how to minimise void periods between tenancies in England.

Good tenants rarely leave a well-run property on a whim. The landlords who struggle in 2026 are not the ones without fixed terms, they are the ones still serving outdated paperwork.

What landlords should do now

1. Replace your tenancy agreement template. Any template that references a fixed term, Section 21, or a rent-review clause is now non-compliant. See how to write a tenancy agreement in England (step-by-step, 2026 edition).
2. Understand the periodic model fully. Read what is a periodic tenancy in England? The 2026 Renters’ Rights Act explained.
3. Update how you think about exits. Possession now runs through Section 8 grounds only; build a habit of monitoring arrears and documenting issues from day one.
4. Plan rent increases properly. Use the once-a-year Section 13 route, see Section 13 rent increases explained: the 2026 rules for England landlords.
5. Know the history. For context on what was lost, read Assured Shorthold Tenancy (AST) explained: what it was and why it no longer exists in England.

Frequently asked questions

Can I still write a tenancy agreement that lasts 12 months?

You can agree informally that you both hope the tenancy lasts at least a year, but you cannot create a binding 12-month fixed term. Whatever the agreement says, the tenancy is legally an assured periodic tenancy and the tenant can end it on two months’ notice. Wording a “minimum term” into the contract does not make it enforceable against the tenant.

Did my existing fixed-term tenancies end on 1 May 2026?

No. They converted automatically into assured periodic tenancies on the commencement date. The tenant did not have to move, you did not have to re-sign, and the rent stayed the same. The only practical effect was that any remaining fixed period and any Section 21 or rent-review clauses ceased to have effect.

Can a tenant leave whenever they want now?

A tenant can end a periodic assured tenancy at any time by giving at least two months’ written notice ending on the relevant date. There is no early-exit penalty and no requirement to see out a minimum term, because there is no minimum term.

How do I regain possession if there is no fixed term to expire?

Through Section 8 only. You serve the current prescribed Section 8 notice on GOV.UK citing a valid ground, for example serious rent arrears (Ground 8), intention to sell (Ground 1A) or to move in yourself, observe the relevant notice period, and apply to court if the tenant does not leave. See Section 8 vs Section 21: what changed after the Renters’ Rights Act 2025.

Can I still take six months’ rent in advance to feel more secure?

No. You cannot require more than one rent period in advance. For monthly rent that means one month. Income security now comes from good referencing, a guarantor where appropriate, and the arrears possession ground, not from front-loading rent.

Is a periodic tenancy worse for landlords than a fixed term was?

Not necessarily. You lose the guaranteed minimum term, but you also lose all the renewal admin and gain a single, simple, portfolio-wide tenancy type. Your core protections remain intact, and most reliable tenants stay for years regardless of whether a fixed term exists.

Coming soon

Tenancy Pilot is launching soon with a guided Tenancy Agreement builder set automatically to the new periodic assured tenancy model, no fixed-term clauses, no banned rent-review wording, and no defunct Section 21 references. You answer a few questions and it produces an England-specific, Renters’ Rights Act-ready agreement you can issue with confidence, with deadline reminders for deposits and certificates built into your dashboard. Want it on day one? Join the waitlist to be first in.

This article is general information, not legal advice. The law changes and individual circumstances differ. Always check the current position on GOV.UK and legislation.gov.uk, and consult a qualified solicitor before acting.