Fixed-Term vs Periodic Tenancy
The differences between a fixed-term assured shorthold tenancy and a periodic tenancy — including security of tenure, notice periods, and the impact of the Renters' Rights Act 2025.
Overview
Most private residential tenancies in England are assured shorthold tenancies (ASTs) under the Housing Act 1988. An AST can be either a fixed-term tenancy (for a specified period, usually 6 or 12 months) or a periodic tenancy (rolling from week to week or month to month with no defined end date). Both types of tenancy give tenants significant security of tenure — a landlord cannot recover possession without a valid ground and a court order. The Renters' Rights Act 2025 (which abolished section 21 no-fault evictions and converted all existing fixed-term ASTs to periodic tenancies from its commencement date) fundamentally changed the position, but understanding the pre-reform position remains relevant for tenancies entered into before its commencement.
Side-by-Side Comparison
Fixed-Term Tenancy
Pros
- Rent is locked for the fixed term — the landlord cannot increase rent mid-term without a rent review clause
- Security of tenure for the agreed period — the landlord cannot evict without a ground
- Good for tenants who want certainty of accommodation for a set period
- Pre-Renters' Rights Act: section 21 notices could not be served to expire before the fixed term ended
- Landlord has certainty of rent for the fixed period
Cons
- Breaking the tenancy early (before the fixed term ends) requires the landlord's consent — the tenant may be liable for rent until a replacement tenant is found
- Post-Renters' Rights Act 2025: all new tenancies are periodic — fixed terms are abolished for new tenancies
- If no break clause, tenants are locked in even if circumstances change
- At the end of the fixed term, without agreement the tenancy becomes a statutory periodic tenancy
Best For
Tenants who want a guaranteed period of accommodation without risk of eviction; landlords who want certainty of income for a defined period. Primarily relevant for tenancies entered into before the Renters' Rights Act 2025 commenced.
Periodic Tenancy
Pros
- Flexibility for the tenant to give notice and move without facing early termination liability
- Now the default for all new ASTs in England — landlords cannot offer fixed terms for new tenancies
- The Renters' Rights Act 2025 abolished section 21 no-fault eviction — the landlord must have a valid ground to end the tenancy
- Rent increases must go through the statutory process under section 13 of the Housing Act 1988 — capped to market rent and challengeable at a First-tier Tribunal
Cons
- Tenants on a periodic tenancy can give one rental period's notice — typically 1 month — and leave
- Less rent certainty for the landlord
- Pre-Renters' Rights Act 2025: landlords could serve a section 21 notice with 2 months' notice to end the tenancy without reason (now abolished)
- Landlords must now rely on mandatory or discretionary grounds under Schedule 2 of the Housing Act 1988
Best For
All new tenancies in England from the commencement of the Renters' Rights Act 2025. Also appropriate for tenants who need flexibility or who are uncertain of their long-term plans.
Key Differences
Our Recommendation
Following the Renters' Rights Act 2025, all new assured shorthold tenancies in England are periodic — fixed-term ASTs cannot be created for new tenancies. For tenants with existing fixed-term tenancies entered into before the Act's commencement, those tenancies will have been converted to periodic tenancies on the commencement date. The practical implication is that both landlords and tenants now operate entirely on periodic terms, with security of tenure depending on the Housing Act 1988 statutory grounds. Tenants benefit from the abolition of no-fault s.21 eviction; landlords must rely on specific grounds. Both parties should ensure the terms of their tenancy (including the notice periods and grounds for possession) are reviewed in light of the new legislation.