All new tenancies are periodic: what this means for renters
The Renters' Rights Act 2025 received Royal Assent in late 2025 and came into force on April 1, 2026, marking a significant shift in how rental agreements are structured. This guide focuses on Section 3 of the Act, which mandates that all new tenancies be periodic from the outset. The change applies to both private and social renters, offering greater flexibility and transparency in housing arrangements.
Prior to this Act, landlords often offered six-month fixed-term contracts, which locked tenants into a set period without the option for early termination unless specific conditions were met. With the introduction of Section 3, new tenancies automatically revert to periodic after the initial term, providing renters with more control over their rental periods.
What the law actually says
Under the Renters' Rights Act 2025, specifically Section 3(1), all new residential tenancies are deemed periodic from day one. This means that once a fixed-term period ends (if any is agreed upon initially), the agreement transitions to a rolling monthly arrangement unless both parties agree otherwise in writing. The Housing Act 1988 also plays a role, as it sets out the framework for periodic tenancies and notice periods.
Section 3(2) of the Renters' Rights Act stipulates that tenants may terminate their periodic tenancy by giving two months' notice to leave, which must be provided in writing. This is irrespective of any break clauses previously agreed upon in fixed-term contracts. Section 3(3) clarifies that landlords also have the right to end a periodic tenancy under certain conditions, such as non-payment of rent or breaches of terms.
How this changes the pre-2025 position
Before the Renters' Rights Act 2025, most new tenancies were fixed-term contracts lasting six months or longer. At All new tenancies are periodic: what this means for renters, these agreements often included strict notice periods and penalties for early termination. Tenants who wanted to leave before their contract expired had limited options. Usually involving substantial fees or breach of contract issues.
Now, with the introduction of periodic tenancies from day one under Section 3(1), tenants are no longer bound by rigid fixed-term arrangements. Instead, they can opt out of the agreement at any time with a two-month notice period. This change provides greater flexibility and reduces the financial burden of breaking a lease early.
Landlords must now adhere to the new rules regarding periodic tenancies, which include providing a fair and reasonable reason for ending an arrangement (such as non-payment or damage). The shift from fixed-term to periodic agreements also means that landlords have less predictability in rental income, but it aligns with broader tenant rights protections.
What this means for tenants
For renters entering into new tenancies after April 1, 2026, the transition to periodic arrangements offers several practical benefits. First, tenants no longer need to worry about being locked into a fixed-term contract if they plan on moving out earlier than initially agreed. By giving two months' notice (as per Section 3(2)), tenants can terminate their tenancy without facing penalties.
periodic tenancies allow for more spontaneous changes in living situations, such as relocating due to job or family circumstances. Tenants should familiarise themselves with the specific conditions of their agreement and ensure they provide written notice well in advance of moving out. It's also important to document all communications related to the termination process to avoid potential disputes.
What this means for landlords
Landlords must adapt their practices to align with the new requirements under Section 3 of the Renters' Rights Act 2025. They're no longer able to enforce strict fixed-term agreements without providing tenants with periodic tenancy options from day one. This shift requires landlords to be more flexible in managing their properties and tenant relationships.
Under these changes, landlords also have fewer grounds for terminating a tenancy compared to the pre-Act era. At All new tenancies are periodic: what this means for renters, for example, non-payment of rent or significant breaches of contract remain valid reasons for eviction (Section 3(3)). However, they must follow strict notice periods and legal procedures when seeking to end an arrangement prematurely.
Landlords should review their current agreements and ensure compliance with Section 3 requirements. They may also need to adjust their rental terms to account for the increased flexibility tenants now enjoy.
Common questions and edge cases
Fixed-term contracts ending before April 1, 2026: If a fixed-term contract was signed before the Act's implementation but ends after April 1, 2026, it will automatically become periodic at that point. Landlords must respect this transition period.
Break clauses in student accommodation: Many student housing contracts include break clauses allowing early termination with notice or payment of fees. However, under Section 3(2), tenants are still required to give two months' notice to leave unless the contract explicitly states otherwise. This may reduce the need for break clauses but could complicate negotiations.
Joint tenancies and periodic arrangements: When multiple people share a rental property as joint tenants, all parties must agree on any changes to the agreement, including moving out (Section 3(2)). Each tenant is responsible for giving notice individually, and collective agreement is necessary before termination can proceed.
Landlord's right to repossess under Section 8: Landlords may still pursue eviction through a Section 8 notice if tenants breach their tenancy agreements. However, the grounds for eviction must align with specific conditions outlined in the Act (Section 3(3)).
When to get professional advice
While many aspects of periodic tenancies are straightforward and can be managed independently, some situations may require legal or expert guidance. For instance, if a landlord disputes your right to terminate under Section 3(2), consulting with a solicitor may be necessary to protect your interests. Similarly, issues related to breach of contract or unlawful eviction often warrant professional intervention.
Citizens Advice and Shelter are excellent resources for general advice on tenant rights and obligations. At All new tenancies are periodic: what this means for renters, these organisations can provide initial guidance and help you understand your legal standing before proceeding further. If the situation is complex-such as involving multiple parties in joint tenancy-or if there's a risk of losing your home, seeking regulated solicitor support may be advisable to ensure your rights are fully protected.