Fixed Term Tenancy Model Is Abolished

The UK private rental sector faces its biggest shake-up in a generation, ending the era of the fixed term tenancy. Parliament has passed the Renters’ Rights Act, and this legislation fundamentally changes how landlords let property. Specifically, the Act abolishes Assured Shorthold Tenancies (ASTs) in England. From 1 May 2026, the market shifts to a single system of rolling periodic agreements. Consequently, landlords and tenants must prepare for a new landscape without fixed end dates.

The Death of the AST

For decades, the Assured Shorthold Tenancy served as the default rental agreement. However, the new Act removes this model entirely. Landlords will no longer grant six or twelve-month fixed terms. Instead, every tenancy becomes periodic from day one. This change applies to both new and existing agreements. Therefore, current fixed terms will automatically convert to periodic tenancies when the law takes effect.

Furthermore, the government has scrapped Section 21 “no-fault” evictions. Landlords can no longer end a tenancy simply because a contract expires. They must now prove specific statutory grounds in court to regain possession.

Replacing The Fixed Term Tenancy System

This shift creates a “forever” tenancy model until a specific event ends it.

Tenants Hold the Notice Power

Tenants gain significant flexibility under these rules. They can stay in a property indefinitely if they pay rent and respect the agreement. However, if they wish to leave, they simply give two months’ notice. They can serve this notice at any point. Consequently, landlords cannot lock tenants into long-term financial commitments.

Landlords Must Use Legal Grounds

Landlords lose the automatic right to possession at the end of a term. To end a tenancy, you must prove a valid reason in court. The Act defines these reasons clearly. They include:

• You intend to sell the property.
• You or your family need to move in.
• The tenant has serious rent arrears.
• The tenant displays anti-social behaviour.
• The tenant breaches the tenancy agreement.

Operational Changes for Landlords

The removal of contract end dates forces a change in daily management.

Statutory Rent Increases

Landlords can no longer use a tenancy renewal to negotiate rent. Instead, you must use the Section 13 notice procedure. You can raise the rent only once per year. Furthermore, you must give the tenant at least two months’ notice. Tenants also gain the right to challenge these increases. They can take their case to the First-tier Tribunal if they believe the figure exceeds market value.

Continuous Compliance

Previously, landlords often used contract renewals to check compliance or inspect the property. Now, management becomes a continuous process. You must track gas safety, electrical checks, and inspections on a rolling basis. You cannot rely on a contract renewal date to trigger these administrative tasks.

The Student Market Exception

The government recognises the unique nature of student lets. Therefore, the Act includes a specific ground for possession for student accommodation. Landlords can recover their property in line with the academic year. However, you must declare this intention at the start of the tenancy. This rule protects the annual September turnover model vital for student landlords.

Fixed Term Tenancy Reform: The Facts

This structural reset brings both challenges and opportunities.

The Challenges:

• Uncertainty: You cannot predict exactly when a tenant will leave.
• Cashflow: Mid-cycle exits may leave voids during quiet months.
• Court Delays: Regaining possession requires a legal process, which takes time.

The Opportunities:

• Reduced Churn: Tenants may stay longer if they feel secure.
• Lower Costs: Fewer renewals mean less administrative paperwork and fewer fees.
• Stable Occupancy: Good tenants often prefer stability, ensuring steady income.

Conclusion

The Renters’ Rights Act removes the fixed-term safety net landlords have used for years. Income forecasting and tenant retention now matter more than ever. Smart landlords will adapt their strategies today. You must focus on service quality to keep tenants happy. Ultimately, the market remains open, but the rules of engagement have changed forever.