Fixed-Term AST vs Statutory Periodic Tenancy: What Changes When the Term Ends?
When a fixed-term assured shorthold tenancy expires, it becomes a statutory periodic tenancy — a rolling arrangement. This comparison explains the differences in notice rights, rent increases, and security of tenure between the two.
Overview
Most residential tenancies in England and Wales begin as fixed-term assured shorthold tenancies (ASTs) — typically for 6 or 12 months. When the fixed term expires without a new agreement being signed, the tenancy automatically converts to a statutory periodic tenancy under s.5 of the Housing Act 1988. The period of the statutory periodic tenancy mirrors the rent payment period — so monthly rent means a monthly periodic tenancy. Many tenants and landlords do not realise how their rights change when the tenancy becomes periodic. Notice periods, the ability to end the tenancy, and the procedure for rent increases all differ between a fixed term and a periodic tenancy.
Side-by-Side Comparison
Fixed-Term AST
Pros
- Security for the tenant for the full fixed term — landlord cannot serve a valid s.21 notice during a fixed term (Housing Act 1988 s.21(1)(b))
- Certainty of rent for the fixed period — no rent increase without a contractual rent review clause
- Stability for both parties — clear end date and agreed terms
- Preferred by lenders for buy-to-let mortgages — most require a minimum 6-month AST
Cons
- Tenant cannot easily leave before the fixed term ends without a break clause — liable for rent until end of term or a new tenant is found
- If the tenant holds over beyond the fixed term without a new agreement, the tenancy automatically becomes periodic
- Break clauses, if included, must be exercised strictly in accordance with their terms
Best For
Both landlords and tenants who want certainty for a defined period — particularly where the tenant is new and the landlord wants protection against early departure.
Statutory Periodic Tenancy
Pros
- Flexible for the tenant — can end the tenancy by giving one clear period's notice (typically one month for a monthly periodic tenancy)
- Landlord can also end the tenancy by serving a valid s.21 notice — giving at least 2 months' notice (or more under local rules)
- No need to negotiate and sign a new tenancy agreement — continuity without formality
- Tenant retains all statutory protections — deposit remains protected; repairing obligations continue
Cons
- Tenant has less certainty — landlord can serve a s.21 notice at any time once the fixed term has expired (subject to Renters Reform Act 2025 changes)
- Rent can be increased via a s.13 Housing Act 1988 notice (annual increase process) — no fixed-term protection against increases
- Some landlords prefer not to offer rolling tenancies — they may insist on a new fixed-term agreement
Best For
Tenants who want flexibility to leave with short notice; landlords who want the ability to recover possession with relatively short notice. Suitable as a medium-term arrangement when both parties are uncertain about long-term plans.
Key Differences
Our Recommendation
When a fixed term ends, tenants are not in a worse legal position on a statutory periodic tenancy — they retain all their statutory rights. However, they lose the certainty of a fixed term (the landlord can serve a s.21 notice). If you want continued certainty, negotiate a new fixed-term agreement before the current term expires. Note that the Renters (Reform) Act 2025 is progressively removing fixed-term tenancies — all new tenancies will eventually be periodic from the outset, and s.21 no-fault eviction is being abolished.