UK Fixed-Term vs Periodic Tenancy Under RRA 2025

The Renters’ Rights Act 2025 (RRA 2025) transforms English residential tenancy structure. From commencement (May 2026), fixed-term assured tenancies will largely disappear from the new tenancy market — replaced by an assured periodic tenancy running month-to-month from the start. This compare-and-contrast piece examines the two tenancy types under the new regime, the transitional position, and the implications for landlords and tenants of both Welsh and English markets.

1. The Pre-RRA 2025 Position — Fixed-Term + Statutory Periodic

Until the RRA 2025 commencement, the standard structure for an Assured Shorthold Tenancy (AST) under the Housing Act 1988 sections 19A and 19B has been:

1. Fixed term — typically 6 or 12 months, agreed contractually
2. Statutory periodic tenancy — arises automatically at end of fixed term under Housing Act 1988 section 5(2), on the same terms, paid monthly (or whatever period rent is paid)

The fixed term gives both parties certainty for the agreed period. The statutory periodic tenancy provides flexibility thereafter.

2. The RRA 2025 Position — Periodic from Day One

The RRA 2025 abolishes assured shorthold tenancies as a category and reshapes the assured tenancy as periodic by default. New tenancies created after commencement will be:

• Monthly periodic (or matching the rent payment frequency)
• No fixed term over 12 months (the maximum fixed term, where any is permitted at all)
• Tenant terminable on 2 months’ notice, regardless of how long the tenancy has run
• Landlord terminable only on a Schedule 2 ground under Section 8

Section 21 “no-fault” notices are abolished entirely.

Reference: https://www.gov.uk/government/collections/renters-rights-bill

3. Side-by-Side Comparison

4. Key Statutory References for the New Periodic Tenancy

• Housing Act 1988 section 5 (as amended by RRA 2025) — periodic tenancies
• Section 8 — termination grounds
• Section 13 — rent increase procedure (now once per year, with First-tier Tribunal challenge route)
• Schedule 2 — Schedule of grounds (1, 1A, 1B, 2–17, 7A, 14, etc.)
• Renters’ Rights Act 2025 — new substantive provisions including pet rights, ombudsman, decent homes, awaab’s law extension to private sector

Primary source: https://www.legislation.gov.uk/ukpga/1988/50/contents

5. Transitional Position

Tenancies in existence at RRA 2025 commencement are transitioned in stages:

• Existing fixed-term ASTs convert to periodic assured tenancies on RRA 2025 commencement, retaining their original terms but losing s.21 termination
• Mid-tenancy break clauses continue to apply
• Existing s.21 notices served before commencement remain valid for a transitional window (typically 3 months from commencement)

Practical impact: a landlord who served a Section 21 notice the day before commencement can still proceed; a landlord who waits beyond commencement has no Section 21 path.

Reference: https://www.gov.uk/government/publications/renters-rights-bill-impact-assessments

6. Landlord Perspective — What the Change Means

7. Tenant Perspective — What the Change Means

8. Rent Increase Mechanics — Section 13 in the New World

A landlord can increase rent under the new regime via:

1. Section 13 notice — Form 4 in prescribed form, giving at least 1 month’s notice (2 months for yearly tenancies)
2. Once per year maximum
3. Tenant can challenge to the First-tier Tribunal (Property Chamber) within the notice period
4. The Tribunal sets market rent under section 14 — which can be lower than asked (the landlord cannot withdraw)

This is a significant constraint compared with pre-RRA 2025 fixed-term tenancies, which could provide for contractual rent reviews.

9. SDLT Implications

For tenancies, Stamp Duty Land Tax (SDLT) is assessed on Net Present Value (NPV) of the rent. For new periodic tenancies post-RRA 2025:

• HMRC treats the indefinite term as starting with 12 months presumed
• SDLT applies only where NPV exceeds £125,000 (residential threshold)
• Most residential PRS tenancies remain below SDLT threshold

Reference: https://www.gov.uk/guidance/sdlt-leases

10. The Renters’ Ombudsman

A new requirement under RRA 2025: every private landlord must register with the Renters’ Ombudsman (membership fee). Disputes about RRA 2025-specific matters (pets, repair timelines, decent homes) are dealt with by the Ombudsman before court.

11. Common Mistakes — Gyoseishoshi View

12. The Welsh Position — A Different Track

Wales operates under the Renting Homes (Wales) Act 2016 and uses occupation contracts (standard or secure), not assured tenancies. The Welsh regime abolished section 21 equivalents in December 2022. Landlords operating across England and Wales must run two compliance regimes.

Reference: https://www.gov.wales/renting-homes

Conclusion — A New Default Settled In

By 2026, the periodic assured tenancy is the standard English residential tenancy. Fixed-term agreements survive only as fading transitional artefacts. Landlords adapting to the new world treat tenancies as long-term relationships with statutory exit ramps, not as time-bound contracts. Tenants enjoy unprecedented mobility within an unprecedented protection framework.

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Disclaimer

Legal information, not legal advice. MmowW Scrib🐮 is operated by a licensed Gyoseishoshi (行政書士) office in Japan. We are not UK solicitors.

Sources

• Housing Act 1988: https://www.legislation.gov.uk/ukpga/1988/50/contents
• Renters’ Rights Bill collection: https://www.gov.uk/government/collections/renters-rights-bill
• SDLT lease guidance: https://www.gov.uk/guidance/sdlt-leases
• Renting Homes (Wales): https://www.gov.wales/renting-homes