From ASTs to periodic tenancies: a shift in rental law to come?

Last September, we covered the Renters’ Rights Bill as it prepared for its second reading in Parliament. Since then, the bill has continued its legislative journey, with further readings in the House of Lords still ahead. As it evolves, additional amendments may be introduced to help mitigate any unintended impact on the housing market. Designed to strengthen protection for both tenants and landlords, the bill proposes several key reforms – among them the replacement of Assured Shorthold Tenancies (ASTs) in England with Assured Tenancies, also referred to as Periodic Tenancies.

Currently ASTs are the default form of tenancy in England between private landlords and tenants and these tend to have a fixed term period of six or twelve months, after which the parties can renew the agreement for a further fixed term.  This is called a Fixed Term Tenancy and if this is not renewed for another fixed term, assuming the rent is paid monthly, the tenancy will convert automatically to a rolling monthly contract, called a periodic tenancy.

The Renters’ Rights Bill will remove fixed term assured tenancies. Periodic tenancies improve tenants’ flexibility to move in response to changing circumstances, for example after a relationship breakdown, a new job or when buying a first home. Tenants are able to stay in their home until they decide to end the tenancy by giving 2 months’ notice.

Under a periodic tenancy, landlords are able to increase rents once every 12 months by giving the tenant(s) two months’ notice. Any increase must be in line with local market rates; excessive increases cannot be used to force tenants out. Rent increases can be challenged by tenants if they are believed to be unfair or above market value.

The shift to periodic tenancies strengthens the incentive for landlords to maintain high-quality homes – properties that naturally attract responsible tenants who are more likely to stay longer under the new rules. This not only ensures a more stable and consistent rental income but also reduces costly void periods. We’ll continue to follow the Bill’s progress closely, so watch this space for further updates and insights.

Sources and further information:

https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/guide-to-the-renters-rights-bill

https://www.landlordtoday.co.uk/breaking-news/2025/06/government-in-no-rush-to-progress-renters-rights-bill/