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Fixed Term and Periodic Tenancies
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Before reading this guide you should follow our occupation type guide linked from the button below.
Note that this article is about tenancies and does not apply to residential licenses.
The effect of the Renters Rights Act 2025
This made many changes to housing law. The first stage of the Act came into force on 1 May 2026. Prior to that:
- There was a tenancy type know as an assured shorthold tenancy which was the main tenancy type in England, and
- Most assured and assured shorthold tenancies were given, at least initially, for a fixed term. Usually this was six months or a year but it could be whatever the parties agreed.
The Renters Rights Act abolished assured shorthold tenancies and coverted them all to assured periodic tenancires. Any existing assured tenancies were also converted to assured periodic tenanciees.
As a result the majority of tenancies in England will be periodic. However we discuss fixed terms first as, even though your tenancy is unlikley to have one, you need to know about them.
1. Introduction
When you rent a property it will be for a period of time. For example six months or a year. This is known as the ‘term’.
There are two types of term,
- A fixed-term, and
- A term which is ‘periodic’
It is important to know which one you have as different rights and obligations apply. This article explains how the system works and gives some of the background law.
2. Fixed terms and fixed term periods
Most tenancies now will be assured periodic tenancies. However there are still several types of tenancy where fixed terms are allowed. For example:
- Company lets
- Resident landlord lets (ie where a landlord rents self contained accommodation in the building where they live)
- Some student lets – for example if they landlord is the college or university delivering their course, or if the propety is deemed to be ‘Purpose Built Student Accommodation’.
When you rent a property under any of these tenancy types from a landlord you will normally rent that property for a period of time. Normally this will be six months or a year, but it does not have to be.
For example, there is nothing to stop your landlord from giving you a fixed term for a month, or seven months or two years.
Let’s take a look at the different lengths of fixed term and their significance.
Fixed terms of up to three years
These can be created without a written agreement.
The reason for this is s54(2) of the Law of Property Act 1925. The Law of Property Act provides that all transfers of a legal interest in land (and a tenancy is a legal interest in land as explained in this article) must be done by deed.
A deed, by the way, is a document signed with a statement that it is intended to be a deed, and where the signatures are witnessed by an independent witness.
However, section 54(2) of the Law of Property Act makes an exception to this rule:
- When the tenant takes possession
- If the term is not more than three years (this will include periodic tenancies)
- If there is a rent, and
- Provided there is no premium or ‘fine’ (this is where you make a payment for the lease – as you do for long leases).
So this is why valid tenancies can be created for tenancies with a term of three or less years where there is no written agreement or where the written agreement is not signed ‘as a deed’. Provided the occupier is paying rent, they will automatically acquire a tenancy when they move in.
However, tenancies without a written agreement are a bad idea, so, if at all possible, you should ensure that you have one.
Fixed terms between three and seven years
These are uncommon but do exist. However, to create them, they will need to be created by deed.
Fixed terms over seven years
It is at the seven years point that there is a radical change in the legislation relating to leases.
The landlord’s repairing obligations will not apply.
These are the regulations which provide that the landlord must keep in repair the structure and exterior of properties and the main installations for the supply of utilities and space and water heating.
Likewise the fitness for human habitation rules will not apply.
This is why you should NEVER sign a tenancy agreement with a term of over seven years. If you do, you may find that at the end of the tenancy the landlord will have the right to force you to pay for expensive repair works.
The lease will need to be registered at the Land Registry.
This does not apply to shorter tenancies. Meaning that if the property is sold where there is a tenant in occupation under a standard tenancy of say, six or 12 months (or as will usually be the case now, a periodic tenancy), the new purchaser will take it subject to that tenancy – the tenants will have what is called an ‘overriding interest’.
Generally, most tenancies where fixed terms are allowed will have a term of less than three years, although a few may be longer. Long leases, those which need to be registered at the Land Registry, tend to be much longer, with terms of between 99 and 999 years. They are very different, as they are normally ‘bought’ for what can be a very large sum of money and the rent is usually a much cheaper ‘ground rent’.
The Renter’s Guide does not cover long leases, but you will find information on the gov.uk website here.
3. Ending fixed terms
The big difference between freehold and leasehold (which includes tenancies) interests in land, is that leases / tenancies are only temporary. Although some tenancies may only have a term of one week and some long leases may have a term of 999 – they must all come to an end sometime.
So how does this work? Let’s look first at ending them early.
Ending a fixed-term tenancy early
There are basically three ways that a fixed term can be ended early:
- By agreement between the landlord and the tenant, or
- by a ‘break clause’ – a special clause in your tenancy agreement which allows the fixed term to be ended early in certain circumstances (for example if by serving a written notice), or
- by a court order.
If your landlord wants to end the tenancy early
If your landlord is looking to end your fixed-term early through the courts, this will normally only be possible via the old-fashioned ‘forfeiture’ process. This is normally done where tenants fail to pay rent during the fixed term. It is possible to forfeit a lease for breach of the tenancy agreement, but this is a complex process and very rarely used.
So, assuming there is no break clause, and assuming you do not do anything which will justify your landlord bringing proceedings to forfeit your lease, your landlord cannot force you to leave during the fixed term against your will.
If you want to end the tenancy early
Conversely, however, you cannot end the tenancy early unless the landlord agrees.
So if you find that you don’t want to live in the property anymore (perhaps because you can no longer afford the rent), you can’t end the tenancy on your own, for example by moving out.
If you move out, the tenancy will continue until the end of the fixed term. Meaning that you are still responsible for the rent, even though you are not living at the property, and the landlord will be entitled to sue you for it.
So if you want to end the tenancy early for any reason, you will need to speak to your landlord about it and try to reach an agreement with him.
At the end of the fixed term
At the end of the fixed term, your tenancy will end. Always. It can no longer exist as it was only ever granted for that specific period of time.
Which means that if you move out at or before the end of the fixed term – your landlord cannot penalise you for this.
Sometimes landlords include clauses in the tenancy agreement stating that you must give notice (e.g., one or two months) if you want to leave at the end of the fixed term, and that if you do not do this, you will have to pay ‘rent in lieu of notice’.
However, these clauses will be void (under the Unfair Terms rules – discussed in this premium article). It does not matter what your landlord puts in his tenancy agreement, if you leave at or shortly before the end of the fixed term, the tenancy will end, and you will not be liable for any ongoing rent.
The question then is – what happens if you do not move out?
If you stay on after the end of the fixed term
In many cases you will have signed a new fixed-term tenancy agreement with the landlord or his agents. Or perhaps a shorter ‘renewal form’ or memorandum. In which case this will then come into force.
Otherwise, in most cases a ‘periodic’ tenancy will be created.
Fixed terms in assured tenancies
As discussed at the start of this article, most tenancies now will be assured periodic tenancies.
However, as well as abolishing fixed terms for assured tenancies, the Renters Rights Act also made it illegal and punishable by a fine of up to £7,000.
The fine can only be imposed by Local Authorities. So this does not really benefit tenants!
However, if your landlord gives you a tenancy agreement with a fixed term in it, this will not be binding on you. Your landlord cannot force you to remain in the property if you want to leave.
If you want to leave and your landlord tries to stop you or threatens you, you should report them to your Local Authority.
4.Periodic tenancies
A periodic tenancy is basically a series of short ‘mini-fixed terms’ which run on one after another. As in the diagram below:
Periodic tenancies are normally created automatically:
- If the tenancy is an assured tenancy, or
- (If the tenancy is a type where fixed terms are allowed) when a tenant remains in the property after the end of a fixed term where there is no new fixed-term agreement signed, and the landlord agrees to this by accepting rent.
After 1 May 2026 most tenancies in England will be periodic.
Periodic tenancies for assured tenancies
The reason the government chose to make most tenancies periodic was to prevent tenants from being forced to remain in a property when they wanted to leave. For example:
- Because it is in poor condition, such as having serious damp and mould problems, or
- If the tenants need to move elsewhere for work purposes
However, the government wanted to avoid a situation where landlords ‘created fixed terms by the backdoor’ by creating long periods. So any period longer than one month will be treated as a monthly tenancy, with the rent apportioned as set out in the legislation.
The new law regarding tenancy periods for assured tenancies is set out in a new section 4A added to the Housing Act 1988:
4A Assured tenancies to be periodic with rent period not exceeding a month
(1) Terms of an assured tenancy are of no effect so far as they provide—
(a) for a tenancy to be a fixed term tenancy, or
(b) for periods of the tenancy to be different from the periods for which rent is payable (“rent periods”).
(2) Where terms of an assured tenancy are of no effect by virtue of subsection (1)(a) or (b), the tenancy has effect as a periodic tenancy under which the periods of the tenancy are the same as the rent periods.
(3) Terms of an assured tenancy which provide for the rent periods are of no effect unless each rent period is—
(a) a period of 28 days or shorter, or
(b) a monthly rent period.
(4) Those terms may provide for different rent periods at different times during the assured tenancy (but each rent period must be permitted by subsection (3)).
(5) Where terms of an assured tenancy are of no effect by virtue of subsection (3), the tenancy has effect as if it provided—
(a) for successive rent periods of one month beginning with the first day of the tenancy, and
(b) for the rent for each such rent period—
(i) to be the amount calculated in accordance with the formula in subsection (6), and
(ii) to be due on the first day of the period.
(6)The formula is—
where—
R is the rent that would have been due for the first rent period of the tenancy under the terms that are of no effect by virtue of subsection (3);
D is the number of whole days in that period.
(7) Except as provided by subsections (1) and (3), nothing in this section limits any right of the landlord and the tenant to vary a term of a tenancy by agreement.
(8) For the purposes of this section, terms of an assured tenancy provide for “monthly” rent periods if they provide for rent to be payable for successive periods of one month, disregarding any provision for the first period to be a different period not exceeding 30 days.
Housing Act 1988 s4A
So what does all that mean?
This is what the subsections mean in ‘normal’ language:
(1) Any term in your tenancy agreement which says you have a fixed term is invalid. Tenancy periods must be the same as the rent periods.
- So if your tenancy has a montly period, you pay rent on a monthly basis
- If your tenancy has a 28 day period, you pay rent on a 28-day basis
(2) If the terms of your tenancy say otherwise, this will be of no effect. Rental periods will still be the same as the tenancy periods.
(3) Periods of a tenancy can only be monthly or for 28 days or less (eg weekly).
(4) Your tenancy agreement can provide for different periods at different times in your tenancy so long as they are not more than monthly.
For example, many landlords want rent to be paid on a particular day in the month (eg the first day in the month). If your tenancy starts on another day, they are permitted to make the first period shorter to make this happen.
So if you move in on the 14th day of the month and the landlord wants rent to be paid on the first day of every month, your tenancy agreement can provide for:
- An initial short period from 14th to the last day of the month
- All following periods to run from the first day in the month to the last day in the month
(5) If your landlord tries to give you longer periods, this will apply as if the periods are monthly and rent is due on the first day of the period, with rent apportioned.
(6) This section sets out the formula to be used to apportion the rent.
(7) Apart from this, landlords and tenants can alter the terms of the tenancy by agreement.
(8) This section confirms that a tenancy can have an initial short period followed by monthly periods.
Periodic tenancies for tenancies that are not ASTs
If your tenancy starts with a fixed term, you will not automatically acquire a periodic tenancy if you are still in the property after your fixed term ends (assuming your tenancy agreement does not provide for a contractual periodic tenancy).
However, if you pay rent that is accepted by your landlord, this will automatically create a tenancy under section 54(2) of the Law of Property Act 1954, as discussed above.
If you don’t pay rent, or if your landlord refuses to accept it, or accepts it on the basis that no new tenancy is created – then your landlord will be entitled to go to Court and evict you on the basis that your tenancy has ended and you have not vacated.
Ending periodic tenancies – tenants
It is very easy to end a periodic tenancy. If you serve a tenant’s Notice to Quit, this will end the tenancy, and you will be able to vacate without penalty at the end of the notice period.
If there is more than one joint tenant, note that any one of you can end the tenancy in this way. If the other tenants want to stay, they will need to reach a new agreement with the landlord.
If this proves impossible, the landlord will be entitled to evict you through the courts after the tenancy has ended at the end of the Notice to Quit period.
Ending periodic tenancies – landlords
- Landlords of common law tenancies can end periodic tenancies by a notice to quit.
- However, the legislation specifically says that landlords of assured tenancies cannot end them by a notice to quit – they have to use the section 8 eviction procedure.
The Notice to Quit period
For your notice to be effective, you need to give the proper notice period.
- For common law tenancies this is equivalent to the period of the tenancy. So if your tenancy is monthly, you will need to give not less than one month’s rent. The notice period for landlords is the same.
- If your tenancy is an assured periodic tenancy, then you need to give not less than two months’ rent, and
This is because the Protection from Eviction Act was amended to change the rules for Notices to Quit served by tenants of assured periodic tenancies.
These rules state that:
- The landlord and tenants can agree in writing for the notice period to be shorter than two months
- Otherwise, the notice period must be not less than two months
- It is believed that the notice period must end at the end of a ‘period of the tenancy’ for it to be effective.
- Landlords cannot tell tenants how to give the notice (e.g. they can’t say it must be served by post)
- Once a Notice to Quit has been served, it can be withdrawn if you change your mind, but only if the landlord and any other tenants agree in writing
Note that we have a premium guide on tenants’ notices to quit, which has further guidance on the procedure and a draft form for you to use.
5. And finally
The Renters Rights Act has changed the law, making the vast majority of tenancies periodic. This, coupled with the abolition of section 21, effectively means that in most cases it will be tenants who decide when the tenancy is to end rather than landlords.
Hopefully this article has given you a good understanding of fixed-term and periodic tenancies and the differences between them.
This is the end of this article.
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