Can Landlords End a Periodic Tenancy Agreement? New Reform Updates
How will the new rental agreement rules affect tenants and landlords? Under the new act, from 1 May 2026, all fixed-term tenancies will be replaced by periodic tenancy agreements.
This change provides more flexibility to live in a safe, habitable home and move out when necessary, as long as renters follow the proper notice rules and requirements. Landlords can also benefit from a fairer process and work with Real Estate Agents London, who can help them to manage their properties more confidently.
What Is A Periodic Tenancy Agreement, and How Does It Work In The UK?
Periodic tenancy is a rolling contract with no fixed end date, either month-to-month or week-to-week, unlike fixed-term tenancies. If you pay rent monthly, it becomes a monthly tenancy; on the other hand, if you pay on a weekly or quarterly basis, then this will be a weekly or quarterly periodic tenancy.
The most common contract for tenants in the UK is “Assured Shorthold Tenancy” with a fixed period of 6 or 12 months. If landlords don’t renew the tenancy agreement or do not issue a formal “notice of termination” at the end of this fixed term, then tenants can live in the property as long as they are paying the rent. As a result, short hold tenancies become periodic contracts if landlords accept the rent.
What Are The Future Tenancy Changes Under the UK Renters’ Rights Act 2025?
Under the Renters’ Rights Bill, which will come into force on 1 May 2026, renters cannot be evicted from the property without a valid reason (End Of Section 21 “No-Fault” Eviction). Moreover, a new periodic tenancy system will replace the fixed-term agreements.
This will give tenants more flexibility to stay in the homes until they decide to leave. They are not trapped and bound to pay rent for substandard properties. For example, during circumstances such as job relocation, relationship breakdowns, and buying a home, they can move out easily.
| Before the Renters’ Rights Bill | After the Renters’ Rights Bill (From 1 May 2026) |
| Landlords could use Section 21 “no-fault” evictions | Section 21 removed: eviction only allowed with a valid legal reason |
| Fixed-term tenancies common | All tenancies become periodic |
| Limited security | Greater security and stability |
| Tenants often tied into fixed terms | Tenants can leave with 2 months’ notice |
| Limited flexibility | More flexibility to move when needed |
| Tenants may feel forced to stay | Tenants can leave poor-quality homes |
| Difficult to move | Easier to move for work or personal reasons |
Types Of Periodic Tenancies
There are two main types of rolling tenancies in the UK:
Statutory Periodic Tenancy
These agreements don’t specify how tenancy continues after the end of other leases. Tenants can continue to stay and pay rent without renewing the contract.
Contractual Periodic Tenancy
This type of tenancy continues after the fixed term ends. The agreements also include a clause “continue as a periodic tenancy” and “carry on month-to-month after fixed term.”
Ending a Periodic Tenancy
This periodic agreement does not terminate automatically unless one party decides to end it or unless both parties agree to terminate it by mutual consent. Landlords and tenants can terminate this rolling contract by giving the required notice.
For Tenants
- For a month-to-month tenancy agreement, they must give at least one month’s notice on or before the first day of the 1 month.
- For a week-to-week tenancy, at least 4 weeks’ notice should be given to homeowners.
For Landlords
Landlords also need to follow the specific legal procedures set by UK law when they end the agreement. They are required to provide a proper written “notice to quit” to their tenants, which must include necessary information and dates of minimum legal periodic tenancy notice periods.
What Are The Requirements For a Written Termination Notice?
The landlords and tenants should follow these key steps and considerations when giving a notice:
- Written notice: Notice must be in a well-written format to avoid misunderstandings or disputes.
- End date: It states the exact date on which the tenant will leave the rental property.
- Legal compliance: Landlords and tenants must comply with all legal notice rules and regulations, including providing accurate information and wording.
- Match rental period: It should match the rent cycle, for example, 30 days for monthly rent.
- Plan: It should give enough time to move, re-let, and find alternative accommodation.
- Clear communication: It clearly states the tenant’s intention to leave and the move-out date.
- Delivery method: Send notice in a verifiable way, for example, through registered mail or hand delivery.
Benefits and Risks of Periodic Tenancy Agreement
Here are the advantages and things to consider of a periodic tenancy agreement when choosing between different types of tenancies:
| Landlords Benefits | Landlords Risks | Tenants Risks |
| Flexible possession without waiting for a fixed term | Tenants can leave suddenly with short notice | Landlords can end the tenancy at short notice |
| Lower renewal and agency costs | Loss of rental income during void periods | Need to find new accommodation quickly |
| Easier rent reviews on a month-to-month basis | Extra costs for advertising and tenant vetting | Disruption to family life and routines |
| Easier to deal with tenant-related issues | Cash-flow instability if the property remains empty | Ongoing uncertainty and lack of long-term security |
What Should a General Tenancy Agreement Include?
Every minor and major detail about the property, tenants, landlords, and requirements must be included in the tenancy agreement. It can be helpful to avoid many misunderstandings and disputes in the future and to stay compliant with the UK laws and regulations.
Tenancy Agreement Must Include
- Names of all parties involved
- Rent amount and how to pay it
- Rent Increase Notice or review details
- Deposit amount and protection details
- Conditions for withholding the deposit
- Full property address
- Tenancy start and end dates
- Tenant and landlord obligations
- Bills the tenant is responsible for
Additional Information Agreements Can Include
- Can tenancy end early, and how
- Responsibility for minor repairs
- Rules on subletting the property
- Are lodgers allowed in the property
What Is The Difference Between a Fixed-Term And a Periodic Tenancy Agreement?
This table highlights the main differences between the two tenancy agreements.
| Feature | Current Fixed-Term Tenancies | New Periodic Tenancies |
| Duration | Set period (6-12 months) | Indefinite until notice given |
| Tenant Notice Period | Tenants cannot leave before the end of the fixed term | 2 months’ notice at any time |
| Landlord Notice Period | Section 21 “no-fault” eviction available | 2 months’ notice with specific grounds only |
| Rent Increases | Fixed for a term duration | Once per 12-month period |
| Flexibility | Low unless a break clause is included | High and can end tenancy with proper notice |
Conclusion
Periodic tenancy agreements provide more security and fairness to both landlords and tenants under the Renters’ Rights Act. Clear notice rules and written agreements will help them to stay compliant with this new tenancy system and reduce the risks of disputes. With Guaranteed Rent services, landlords can also manage their property and protect investments from any losses or damages.
FAQs On Periodic Tenancy Agreements
These are the five different types of tenancy agreements in the UK:
1. Assured Shorthold Tenancies: this is the most common type of tenancy in England and Wales.
2. Assured Tenancy: This provides more protection from evictions as compared to ASTs.
3. Excluded Tenancies or Licenses to Occupy: This type is used for lodgers who live with their residential landlord or share communal areas.
4. Regulated Tenancies: these types of tenancy provide strong protection against evictions, and you can also apply to “fair rents”.
5. Company Let: The company rents a property and involves different rules as compared to standard tenancy types.
Yes, landlords can regain possession, but they must follow legal procedure to do that. They are required to provide a proper notice and must have a valid reason. Because under the Renters’ Rights Bill, no-fault evictions are banned.
Yes, they can raise the rent once a year, but the increase must be justified and reasonable. Moreover, it must align with the market value. They also need to state the rent increase terms in the tenancy agreement to avoid financial complications and miscommunication.
It actually depends on your condition and priorities. Fixed-term tenancy provides stability and security, as the rent is fixed. On the other hand, periodic tenancy offers more flexibility and protection towards renting.
No, a landlord cannot evict tenants because they want to sell the property. The existing tenancy will continue under the new homeowner.
They can reduce risks with regular communication, detailed tenancy agreements that outline responsibilities and notice periods, and building a positive rental relationship.
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