What is a Periodic Tenancy?

The Renters' Rights Bill is set to bring major changes to tenancy agreements across England. One of the most significant updates is the abolition of fixed-term Assured Shorthold Tenancies (ASTs). From the official commencement date (when the legislation takes effect), all tenancies - new and existing will automatically convert to Assured Periodic Tenancies.

Current Tenancy Arrangements

At present, landlords and tenants typically agree on a fixed-term tenancy, commonly lasting 12 months +. These arrangements offer a degree of certainty for both parties. Once the fixed term ends, if no new agreement is signed, the tenancy often continues as a monthly periodic tenancy, aligning with rent payments.

What’s Changing Under the Renters' Rights Bill?

The bill aims to streamline and standardise tenancy structures.

• Fixed-term tenancies will be scrapped: All new tenancies will begin as monthly periodic tenancies. Fixed-term contracts will no longer be an option.

• Existing fixed-term tenancies will convert automatically into periodic tenancies once the legislation is in force.

• Tenancy periods will align with rent payments, which means monthly periods, since landlords will no longer be allowed to accept more than one month’s rent in advance.

• Notice periods are changing:

  • Tenants must give at least two months’ notice.

  • Landlord notice periods will depend on the reason for possession under Section 8 of the Housing Act.

How Landlords Can Prepare

To stay ahead of the curve, landlords should:

• Stay informed – Understand how the Renters' Rights Bill affects your rights and responsibilities.

• Review tenancy agreements – Make sure your current practices and documents comply with upcoming legal standards.

• Seek expert support – Engage with legal professionals or landlord associations for tailored advice.

Why This Matters

For landlords, this reform represents a significant shift. While periodic tenancies offer flexibility for tenants, they may reduce long-term security for landlords. Tenants will be free to leave with two months’ notice, potentially increasing turnover and reducing stability.

 Local Landlord? We’re Here to Help.

Whether you let property in Bookham, Guildford, Leatherhead, or surrounding areas, understanding these changes is vital to protecting your rental business.

Feeling overwhelmed by the headlines? We break down the facts in plain English and help you prepare - no jargon, no myths.

Call us on 01372 456 804
Or email: info@pwdproperty.co.uk

Let Pacey Wingent Dickson guide you through the rental reform landscape with confidence.