One of the most significant changes introduced under the Renters’ Rights Act is the removal of fixed-term Assured Shorthold Tenancies (ASTs).
In their place, all tenancies have automatically become periodic tenancies — meaning they continue on a rolling basis, rather than being tied to a fixed end date.
This marks a major shift in the private rental sector and will change the way many landlords approach tenancy management moving forward.
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What does this mean in practice?
Under the new system, tenants can end their tenancy at any point by giving a minimum of two months’ notice, provided the notice expires on a rent payment date or the last day of a rental period.
Importantly, this notice can be served from the very first day of the tenancy — effectively creating a minimum tenancy length of two months.
The intention behind this change is to provide tenants with greater flexibility and mobility.
For landlords, however, it inevitably introduces a higher degree of uncertainty around rental income stability and long-term planning.
That said, it’s important to keep perspective.
Recent industry data shows that most tenants do actually prefer stability, with as many as 60% remaining in the same home for 3+ years. In reality, tenants are far more likely to stay long-term in homes that are well maintained, professionally managed, and where they feel respected, valued and comfortable.
Where we may see increased movement is in properties that are poorly managed, slow to resolve maintenance concerns, or no longer meet tenants’ expectations.
We may also see a notable impact within the furnished rental and room rental market. Previously, people seeking short-term accommodation would typically pay premium rates to short-let providers or Airbnb operators. However, under the new rules, some may instead choose a standard furnished tenancy for just a few months, as they are no longer tied into traditional 6 or 12-month fixed terms.
For landlords operating in the furnished rental sector, this could potentially lead to a higher turnover of tenants, increased wear and tear on properties, and — within HMOs — a greater likelihood of friction between housemates as occupancy changes more frequently.
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A critical point landlords cannot afford to overlook
Alongside these changes comes increased scrutiny around professionalism, documentation, and compliance.
Landlords are now legally required to provide tenants with specific written information regarding the tenancy, the landlord’s obligations, and the tenant’s rights, before the tenancy begins. This statutory information is known as the Written Statement of Terms.
The Written Statement of Terms can either be incorporated into the tenancy agreement itself or issued as a separate document, but it must be provided correctly and on time.
Failure to issue this documentation before the tenancy commences can result in financial penalties of up to £7,000 for a first offence.
In addition, landlords who continue using outdated tenancy agreements or issue the wrong type of contract under the new legislation may also face penalties of up to £7,000.
This is not simply a minor administrative update — it is a fundamental change in how tenancies must now be structured and managed.
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Our advice to landlords
Now is the time to:
* Ensure you are using a compliant Assured Periodic Tenancy (APT) agreement
* Review and update all tenancy documentation to reflect the new legal framework
* If renting furnished properties, consider which tenants this might attract under the new system
* Strengthen your maintenance response times and tenancy management processes
* If you are unsure about any of the above, seek professional guidance
Getting things right from the outset will help protect both your income and your legal position as the legislation beds into the sector.
If you would like support reviewing the compliance of your current tenancy setup — or would like to learn more about our management services — book a call with our team to discuss, and we will be happy to help.
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In our next instalment of the Renters’ Rights Act Tips Series, we’ll be exploring another key change landlords need to understand and adapt to.