The Renters’ Rights Act: Fixed Terms Are Ending – What Replaces Them?

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One of the most significant and widely discussed changes introduced by the Renters’ Rights Act is the end of fixed-term Assured Shorthold Tenancies. This change is now confirmed in law, and it represents a fundamental shift to a single tenancy structure across the private rented sector.

For many landlords, fixed terms have long been associated with certainty and control, so it’s understandable that this aspect of the Act has caused concern. In this article, we explain what is changing, when it takes effect, and what it means for landlords in practice, without alarm or unnecessary complexity.

What’s changing?

When the Renters’ Rights Act comes into force, the private rented sector will move to a single system of periodic tenancies.

In practical terms, this means:

• Fixed-term Assured Shorthold Tenancies will no longer exist
• All tenancies will operate on a periodic basis
• There will be no fixed end date written into tenancy agreements
• Tenants will still be required to give notice (2 Months) if they wish to leave

What replaces a fixed-term tenancy?

Fixed terms are replaced by a periodic tenancy that continues until either the tenant gives notice or the landlord regains possession using one of the legally defined grounds.

In practice:

• Tenants must give the required notice if they wish to leave
• Landlords can seek possession where legitimate grounds apply
• The day-to-day management of the tenancy remains familiar

We’ll look in detail at landlord possession rights and how they work under the new framework in Part 3 of this series.

What happens to existing fixed-term tenancies?

This is one of the most important points for landlords to understand.

When the Act comes into force, all existing fixed-term Assured Shorthold Tenancies will automatically convert to periodic tenancies, regardless of how much time is left on the fixed term.

• The tenancy continues without interruption
• No new agreement needs to be signed for the conversion to happen
• The fixed end date will no longer apply

This approach allows the sector to move quickly and consistently to a single tenancy system, rather than operating two parallel regimes for years.

Why are fixed terms being removed?

The government’s stated aim is to provide tenants with greater security and stability, particularly by reducing situations where tenants feel pressured to leave at the end of a fixed term despite wanting to stay.

The policy intention is to:

• Reduce unnecessary tenant churn
• Encourage longer-term occupation
• Create clearer, more consistent tenancy rules

For landlords who already favour longer-term tenancies and stable occupiers, this change largely reflects how their properties are managed in practice.

How can landlords bring a tenancy to an end?

Under the new periodic tenancy system, landlords will no longer be able to end a tenancy simply by serving notice at the end of a fixed term.

Instead, landlords will need to rely on specific, legally defined grounds for possession, such as selling the property, moving back in, or serious rent arrears. The process for regaining possession is changing, but landlords’ rights to do so are not being removed - they are being more clearly defined.

We’ll cover landlord notice periods, possession grounds and how the process works in practice in Part 3 of this series.

Does this reduce stability for landlords?

In reality, tenancy stability is driven far more by tenant behaviour, communication and property management than by the presence of a fixed end date.

Tenants who are settled, paying rent on time and looking after a property are unlikely to move simply because they are able to. Equally, tenants who want to leave will usually try to find a way to do so regardless of whether a fixed term exists.

The new framework is designed to formalise longer-term occupation, rather than undermine it.

What should landlords be doing now?

With the legislation now in place, landlords should begin preparing for the new structure by:

• Reviewing tenancy agreements and documentation
• Understanding notice requirements under periodic tenancies
• Reviewing rent review processes (covered in Part 4)
• Ensuring communication and record-keeping processes are robust
• Working with a managing agent who understands the new rules and implementation timelines

Landlords who already operate in a professional, proactive way are likely to find this transition manageable.

Final thoughts

The move away from fixed terms is a significant change to how residential tenancies operate, and it will require landlords to adjust how they think about tenancy structure, notice and longer-term planning.

While this isn’t a reason to panic, it does mean that landlords need to be informed, organised and prepared. Understanding how periodic tenancies work, how possession can be regained when needed, and how rent reviews and communication will operate under the new framework will be increasingly important.

Landlords who take the time now to understand the changes and adapt their processes are likely to find the transition far smoother than those who leave it until problems arise.

If you’d like support reviewing your current tenancy arrangements or preparing for the new framework, our team is always happy to help.

Coming up next

In Part 3, we’ll address one of the most common landlord concerns:

The removal of Section 21 and how landlords can regain possession.

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