Renters Reform Bill: All Tenancies to Become Periodic

Tue 29 Apr 2025

All Tenancies Becoming Periodic Under the Renters (Reform) Bill: What It Means for Landlords and Tenants

One of the most significant changes proposed under the Renters (Reform) Bill is the abolition of fixed-term assured shorthold tenancies (ASTs), with all new tenancies becoming periodic from day one. This reform represents a major shift in the legal structure of private rented housing in England and is set to have far-reaching implications for landlords, tenants, and agents alike.

What Is a Periodic Tenancy?

A periodic tenancy is a rolling agreement with no fixed end date. It typically runs month to month or week to week, depending on the rent payment frequency. These types of tenancies already exist and often arise after a fixed-term AST expires without renewal.

Under the Renters (Reform) Bill, however, all new tenancies will be periodic by default, eliminating the option of a fixed term entirely.

Why Is This Change Being Made?

The government’s primary goal is to create a more flexible and secure rental market for tenants. According to policymakers, periodic tenancies:

Empower tenants by allowing them to leave with two months’ notice, without being tied into long-term contracts.
Support mobility, particularly for renters with changing circumstances, such as employment changes or family commitments.
Reduce evictions by removing the Section 21 "no fault" notice mechanism, which is often tied to the end of fixed-term contracts.

Key Features of the Periodic Tenancy System

No End Date
Tenancies will continue indefinitely until the tenant chooses to leave or the landlord regains possession using legitimate grounds.
Two Months’ Notice from Tenants
Tenants will need to give at least two months' notice to end their tenancy, regardless of how long they have lived in the property.
Grounds-Based Possession for Landlords
Landlords will only be able to end tenancies using specific grounds (e.g., selling the property, moving in a family member, persistent rent arrears), replacing the current no-fault Section 21 notice.
Reapplication Restrictions
Where a landlord ends a tenancy using certain grounds (e.g., selling or moving in), there will be restrictions on reletting to prevent abuse of the system.

Implications for Landlords

This change marks a shift in control. Landlords will lose the ability to plan tenancy end dates with certainty and instead must rely on legal grounds to regain possession. This could:

Affect financial planning, particularly where properties are used as investments.
Increase administrative oversight, as landlords must ensure their possession grounds are robust and legally compliant.
Make tenant selection more important, as longer-term planning may hinge on tenant reliability and behaviour.

However, the reform may also:

Reduce vacancy periods, as tenants can move in more quickly without waiting for fixed terms to align.
Support longer-term tenancies, which can reduce wear-and-tear from frequent turnovers and promote better tenant-landlord relationships.

Implications for Tenants

The shift to periodic tenancies is generally viewed as a win for tenants. They will:

Gain more flexibility and autonomy over when and why they move.
Have better legal protections from retaliatory evictions.
Face fewer penalties for leaving properties due to unforeseen life events.

Transitional Arrangements

The government has suggested that the changes will apply to new tenancies first, with existing tenancies transitioning to the new system later—possibly within a set timeframe after the bill becomes law. This phased implementation is designed to give landlords time to adjust their practices.

Industry Concerns

While many tenant advocacy groups have welcomed the reforms, landlord organisations such as the NRLA have raised concerns about:

Loss of certainty and control.
Potential for increased disputes, particularly if possession grounds are challenged.
The need for court system reform, to ensure that landlords can regain possession efficiently when justified.

Conclusion

Making all tenancies periodic under the Renters (Reform) Bill represents a major transformation of the rental sector. While it aims to create a fairer and more flexible environment for renters, it also places new responsibilities and challenges on landlords and letting agents. Understanding the implications, updating tenancy processes, and staying informed on the bill’s progress will be key for all stakeholders navigating the post-reform landscape.

If you're a landlord and unsure how the Renters (Reform) Bill will affect your properties, get in touch with our team for expert guidance and support tailored to your portfolio on 0121 422 4011 (option 2).