Renters' Rights Bill: Abolishing Fixed-Term Tenancy Agreements

2025-07-04

Industry News

The UK Government is introducing major rental reforms through the Renters' Rights Bill. When it takes effect, all new and existing fixed-term tenancy agreements will automatically switch to rolling periodic tenancies.

Here’s what’s changing, why it matters, and how it affects landlords and tenants.

What Is a Fixed-Term Tenancy?

A fixed-term assured shorthold tenancy (AST) sets a minimum stay, usually 12 months. During that period, tenants must pay rent, and landlords can't reclaim the property unless specific rules apply. Tenants and landlords often renew these agreements with new terms and rent levels.

Research shows 58% of tenants prefer fixed-term tenancies for the stability they offer.

What Is a Periodic Tenancy?

A periodic tenancy runs month-to-month with no fixed end date. It usually starts when a fixed-term AST ends without renewal. Under the new law, all tenancies will follow this flexible format from day one.

Why the Government Is Making This Change

The Government says fixed-term contracts limit flexibility and trap tenants in poor conditions. With this bill, tenants can leave more easily, whether due to personal changes, new jobs, or buying a home.

At the same time, the Government wants to support good landlords by improving and clarifying the legal process for regaining possession through Section 8. It will also remove Section 21 ‘no-fault’ evictions to protect tenants from unfair removals.

What Will Change?

All Tenancies Become Periodic

• Fixed-term tenancies end.
• Tenants can leave anytime with 2 months’ notice.

Tenant Protections

• Landlords can’t evict to sell or move in during the first 12 months.

Rent Arrears Rules

• Landlords must wait until a tenant is 3 months behind on rent to serve a Section 8 notice (previously 2 months).
• Notice period increases from 2 weeks to 4 weeks.

Rent Increases

• Rent can only go up once per year.
• Landlords must follow the Section 13 process to raise rent.

What This Means for You

For Tenants:

• More control and freedom to move.
• 12 months of protection from no-fault eviction.
• Limits on rent hikes.

For Landlords:

• Less control over how long tenants stay.
• Longer process to evict for rent arrears.
• Stricter rules for rent increases.

Summary

The Renters' Rights Bill will replace fixed-term tenancies with rolling agreements. Tenants gain flexibility and protection. Landlords must follow new rules to regain possession and adjust rent. Both sides should prepare now for a more flexible, regulated rental market.

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