Periodic Tenancies Under the Renters Rights Act Explained

WHAT IS A PERIODIC TENANCY?

A periodic tenancy is a rental agreement that continues on a rolling basis without a fixed end date. Instead of committing to a defined contractual term, the tenancy renews automatically according to the rental payment cycle, commonly monthly.

In practical terms, this means the tenancy continues indefinitely until either the tenant gives valid notice to leave or the landlord regains possession using an approved statutory ground.

Periodic tenancies are not a new concept. They already exist when older tenancy agreements move beyond their original term and continue on a rolling basis. However, under periodic tenancies renters reform proposals, this structure would become the default starting point for all new tenancies.

The stated aim is to improve tenant flexibility while creating a clearer legal framework for possession.

NOTICE PERIODS FOR TENANTS AND LANDLORDS

Notice rules are central to understanding how periodic tenancies operate in practice.

For tenants, flexibility is a key benefit. In most monthly tenancies, tenants are expected to give at least two months’ notice. This allows individuals and families to relocate more easily when employment or personal circumstances change.

For landlords, the process is different. If Section 21 is abolished, possession would depend on specific statutory grounds, such as selling the property, landlord occupation, or serious rent arrears.

For no-fault possession grounds, such as selling the property or moving into it, landlords are expected to provide at least four months’ notice.

In addition, landlords are prohibited from using selling or landlord occupation grounds during the first twelve months of a new tenancy. This twelve-month restriction is intended to prevent early termination of new tenancies without cause.

Notice periods may vary depending on the ground relied upon. Some grounds may require longer notice, while others relating to significant breaches may allow shorter timeframes.

As court processes and timelines can evolve, landlords should seek professional guidance where necessary to ensure compliance with the most up-to-date requirements.

WHAT THIS MEANS FOR TENANTS

For tenants, periodic tenancies provide increased flexibility and potentially greater security. Without a contractual end date expiring, tenants may feel more confident establishing longer-term roots in a property. However, tenants must continue to meet their contractual obligations, including timely rent payments and maintaining the property appropriately. The reform aims to rebalance the landlord–tenant relationship while preserving lawful routes for possession when justified.

MANAGING PERIODIC TENANCIES PROFESSIONALLY

Effective management is central to ensuring periodic tenancies operate smoothly.

Clear communication at the outset, detailed inventories, structured rent collection systems and regular property inspections can reduce misunderstandings and disputes.

Landlords reviewing their approach may find it helpful to consult our broader guidance within the Renters Rights Act hub.

For context on possession reform, read Section 21, explained on page:
https://england.shelter.org.uk/housing_advice/eviction/section_21_eviction

If you are considering rent adjustments within a periodic tenancy, see rent increase guide.

Under the proposed reforms, rent increases would generally be limited to once per year and must follow the formal Section 13 statutory procedure.

Landlords should seek professional guidance where necessary when updating tenancy agreements or implementing policy changes.