What Is a Periodic Tenancy Under the Renters' Rights Act 2025?

If you have let property in London for any length of time, you will be used to the rhythm of the fixed term: a tenancy of six or twelve months, a renewal conversation as the end date approaches, and a fresh agreement signed before the clock runs out. The Renters' Rights Act 2025, in force from 1 May 2026, changes that rhythm. Fixed-term assured shorthold tenancies have been replaced by periodic tenancies that roll from month to month, with no fixed end date built in. For many landlords this is the single biggest practical shift in the new regime, so it is worth understanding clearly.

What a periodic tenancy actually is

A periodic tenancy is a tenancy that continues on a rolling basis rather than for a set block of time. Under the new framework, tenancies run month to month and simply carry on until they are brought to an end through one of the proper routes set out in law. There is no automatic expiry date and, in the ordinary course, no separate renewal document to sign each year.

In day-to-day terms, the tenancy keeps going while the tenant is paying rent and meeting the terms, and the same obligations on both sides remain in place throughout. The structure is steadier and simpler on paper, but it does ask landlords to think differently about how and when a tenancy might end.

How a tenancy now begins and continues

The letting process at the start looks broadly familiar. You still market the property, reference the tenant, carry out Right to Rent checks before letting, and protect the deposit in a government-approved scheme within the required time with the prescribed information. If you want a refresher on the full sequence, our complete guide to letting a property in London walks through each stage in order.

Once the tenancy is live, it runs as a periodic tenancy from the outset. There is no countdown to a fixed end date, which means the old habit of diarising a renewal three months before expiry changes shape. Rather than renewing the agreement itself, your attention shifts to keeping records current, staying on top of compliance, and managing any rent review correctly when the time comes.

Ending a periodic tenancy

This is where the change matters most. Section 21, the route that previously allowed possession without giving a reason, has been abolished. Possession is now available only through Section 8 grounds. These grounds cover situations such as the landlord selling the property, the landlord or a close family member moving in, serious rent arrears, and anti-social behaviour, among others.

The practical consequence is that ending a tenancy is now a more deliberate, evidence-led process. You need to identify the correct ground, serve the correct notice with the correct notice period, and keep clear written records throughout. Our overview of the common grounds for possession in London sets out the main categories, and our guide on how to serve a valid Section 8 notice explains the documentation involved. Possession through the courts can take time, and accelerated possession is not available for Section 8, so getting the paperwork right at the start saves difficulty later. This is general information, not legal advice.

Rent increases under the new rules

With no fixed term to anchor a renewal, rent reviews now follow a single statutory route. Rent can be increased once a year by serving a Section 13 notice, giving the tenant at least two months' written notice of the new amount. The tenant has the right to challenge a proposed increase at the First-tier Tribunal, which cannot set the rent higher than the figure the landlord proposed.

It is worth approaching rent reviews on this annual cycle from the outset, with the increase set at a level you can evidence by reference to comparable local rents. Our note on how to renew a tenancy agreement in London explains how the renewal conversation has evolved now that the tenancy itself simply continues. Remember too that advertised asking rent cannot be exceeded; rental bidding wars are banned under the Act.

What this means for your day-to-day management

The periodic model rewards landlords who keep good systems. Because there is no fixed end date prompting a review, the discipline now lives in your records: a current Gas Safety Record renewed annually, an EICR at least every five years, a valid EPC at minimum E, working smoke and carbon monoxide alarms, and membership of a government-approved redress scheme alongside registration on the Private Rented Sector Database.

Equal treatment also sits at the centre of the new regime. Discrimination against families with children or against benefit recipients is prohibited, and tenant selection must always rest on objective, lawful criteria in line with the Equality Act 2010. Keeping these standards built into your process protects you and gives tenants confidence in the tenancy.

A calmer, more continuous arrangement

Seen as a whole, the periodic tenancy is less about a fixed beginning and end and more about a continuing relationship that is well documented and properly managed. The administrative weight shifts from renewing paperwork each year to maintaining compliance, handling rent reviews correctly, and using the right possession route if a tenancy genuinely needs to end. For a wider view of how the reforms fit together, our summary of the Renters' Rights Act 2025 for London landlords is a useful companion.

If you would like a steady pair of hands to keep all of this running, we are always happy to talk it through. Whether you manage one property or several, getting the foundations right under the new rules makes for a calmer letting experience for everyone involved.