The UK Tenancy Divide: Fixed-Term vs. Periodic Contracts Explained

notice periods on the new renters rights act

The Renters’ Rights Act 2025 (RRA 2025), which is being implemented in phases in England, brings significant changes to residential tenancies, most notably by abolishing Assured Shorthold Tenancies (ASTs) and moving towards a system of standardised periodic tenancies.

The key objective is to provide tenants with more security and simplify the process of ending a tenancy.

Key Changes Introduced by the Renters’ Rights Act 2025

The Act effectively phases out the traditional fixed-term tenancy. Once fully implemented, new tenancies will begin as Periodic Tenancies from day one.

1. Abolition of Section 21 (No-Fault Evictions)

  • The Change: The RRA 2025 abolishes the use of the Section 21 notice (the ‘no-fault’ eviction mechanism) for existing and future periodic tenancies.
  • The Result: Landlords must now rely on Section 8 grounds—which are being expanded and strengthened—to repossess a property. Valid grounds include tenant fault (e.g., rent arrears, anti-social behaviour) or landlord circumstance (e.g., selling the property, moving in a close family member).

2. Standardised Periodic Tenancies

  • The Change: All tenancies will be single, rolling periodic contracts (usually month-to-month). While landlords and tenants can agree on a minimum rental period (e.g., 6 months), the agreement remains periodic, meaning notice rules apply after the minimum period.

Detailed Comparison: Notice Periods Under the RRA 2025

The most critical difference now lies in the notice periods required for both tenants and landlords to end the periodic contract.

FeatureLandlord’s Right to TerminateTenant’s Right to Terminate
Tenancy TypeStandardised Periodic Tenancy (The only type for new contracts)Standardised Periodic Tenancy
Minimum TermLandlords cannot give notice to end the tenancy during the initial minimum period (e.g., the first six months) unless there is a breach of contract (fault).Tenants can give notice to end the tenancy at any time once the tenancy has commenced.
Required GroundMust cite a specific, legally valid ground under the expanded Section 8 notice (e.g., moving in, selling, or tenant breach).No ground is required. The tenant can end the contract for any reason.
Notice PeriodVaries by ground: Typically 2 or 4 months’ notice, depending on the reason (e.g., 2 months for selling/moving in; shorter for serious rent arrears).Two months’ notice, regardless of the rent payment frequency (e.g., weekly or monthly). This notice must align with a rent day.
Rent IncreasesRent can only be increased once every 12 months using the proper formal notice.Tenant can leave if they disagree with a proposed rent increase, by serving the two months’ notice.

Summary of the New Approach

AspectThe RRA 2025 Periodic TenancyTraditional Fixed-Term AST (Phasing Out)
End DateNo fixed end date; rolling contract.Specific, set date (e.g., 6 or 12 months).
Landlord EvictionOnly on specific, proven grounds (expanded Section 8). Section 21 is banned.Possible via Section 21 notice (no-fault) or Section 8 (fault) after the fixed term ends.
Tenant Notice2 months’ notice at any point.Cannot end the contract early unless a ‘break clause’ exists or the landlord agrees.
SecuritySignificantly higher security for the tenant, as they cannot be evicted without good reason.Lower security once the fixed term ends.

Crucial Note: These changes apply to tenancies in England. Tenancy laws in Scotland (where fixed terms are already mostly gone) and Wales have their own separate regulations. The RRA 2025 applies to existing periodic tenancies immediately upon implementation and to all new tenancies starting after the Act comes into force.

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