The End of Fixed-Term Tenancies: What Rolling Monthly Agreements Mean for Landlords and Tenants
Understand the shift from fixed-term tenancies to rolling monthly agreements in England. Learn what this means for landlords and tenants, including flexibility, risks, and legal considerations.
The End of Fixed-Term Tenancies: What Rolling Monthly Agreements Mean for Landlords and Tenants
What Are Fixed-Term ASTs?
Most private tenancies in England today are governed by Assured Shorthold Tenancy (AST) agreements, typically set for a fixed term—commonly 6 or 12 months. During this period, tenants are contractually committed to the property, and landlords cannot raise rent or remove them without cause.
Fixed terms have historically offered predictability for both parties. But critics argue that they also limit tenant flexibility and create unnecessary hurdles when life circumstances change.
What’s Changing?
Under the upcoming Renters’ Rights Bill, the government will abolish fixed-term ASTs altogether. All future tenancies in England will become periodic by default, meaning:
Tenancies roll month-to-month (or week-to-week) indefinitely
Tenants can leave with two months’ notice
Landlords can only seek possession using valid legal grounds under Section 8
There will no longer be automatic breakpoints or end dates after 6 or 12 months
This change will apply to new and existing tenancies, although there may be a phase-in period after the legislation comes into effect in early 2026.
Why Is This Happening?
The government aims to create a simpler, fairer, and more flexible rental system. Fixed terms are being scrapped because:
They prevent tenants from moving easily for work, family, or affordability reasons
They lock tenants into properties even if living conditions deteriorate
They often come with high renewal fees or automatic rent hikes
By shifting to periodic tenancies, the government says it’s empowering renters while still protecting landlords through strengthened possession rights.
Impact on Landlords
This is a significant change in landlord operations. The key implications are:
No more pre-set 6 or 12-month contracts – Tenancies continue until the tenant gives notice or a legal reason arises for termination
Less predictability on tenant turnover – Tenants can leave at any time with two months’ notice
No control over end dates – You won’t be able to align new tenants with academic years or seasonal market changes
Must rely on Section 8 to regain possession—for instance, to sell the property or move back in
This also means landlords need to be more proactive with communication, documentation, and planning. You can no longer assume a tenant will leave after a year unless they choose to do so or breach the tenancy.
Impact on Tenants
For tenants, this is largely a win:
No more fixed-term traps – You’re free to move with just two months’ notice
Better negotiation power – Landlords can’t use fixed-term renewals to impose new conditions or rent increases
More stability – You can stay indefinitely as long as you pay rent and follow the rules
The shift to periodic tenancies also gives tenants greater peace of mind that they won’t be evicted due to expiring contracts, especially in tight rental markets.
Concerns and Controversies
Some landlord groups worry that this will:
Make rental income less predictable
Increase vacancy risk and short-notice move-outs
Reduce the appeal of student or short-term lets
Others argue it will raise costs for landlords who now have to screen tenants more carefully and maintain higher service standards to avoid early departures.
However, tenant advocates argue that the current system overwhelmingly benefits landlords, and this reform simply levels the playing field.
Final Thoughts
The removal of fixed-term ASTs in favor of rolling periodic tenancies represents one of the most transformational aspects of the Renters’ Rights Bill. It pushes the English rental market closer to models used in countries like Germany or the Netherlands, where indefinite tenancies are the norm.
Landlords should begin preparing now by:
Reviewing current tenancy agreements and renewal practices
Learning how Section 8 will apply in the new system
Adjusting financial forecasting and property management processes
About LuArl Nest Estate Agents
At LuArl Nest, we believe in clear, honest service for both tenants and landlords.
Whether you’re looking to rent your next home or find the perfect tenant, our team is here to guide you every step of the way.
📧 Contact us today at info@luarnest.co.uk or visit www.luarnest.co.uk to find out how we can help you!