Another major change under the Renters’ Rights Act is the move away from fixed-term tenancy agreements, with all tenancies set to become periodic.

This shift will fundamentally change how rental agreements are structured, giving tenants more flexibility while creating new considerations for landlords.

What is a periodic tenancy?

A periodic tenancy is a rolling agreement that continues indefinitely until either the tenant or landlord decides to end it, provided the correct notice is given.

At present, most tenancies begin with a fixed term, typically six or twelve months, which gives both parties a level of certainty. Once that period ends, the tenancy may either be renewed or become periodic.

Under the new legislation, this structure will change entirely.

What’s changing under the Renters’ Rights Act?

From the implementation of the Act, fixed-term tenancies will effectively be removed and all tenancies will become periodic from the outset.

This means tenants will no longer be tied into long-term contracts in the traditional sense. Instead, they will have the flexibility to leave a property at any time, as long as they provide the required notice, which is typically two months.

Existing fixed-term agreements will automatically transition into periodic tenancies once the new rules come into force, without the need for a new contract to be signed.

How will this affect landlords?

For landlords, this change represents a shift away from the certainty that fixed-term agreements once provided.

Previously, a fixed term offered reassurance that a tenant would remain in the property for a set period. With periodic tenancies, there is a greater possibility that tenants may leave earlier than expected, which can create potential gaps in rental income.

This makes it more important for landlords to ensure they are selecting the right tenants from the start, carrying out thorough referencing and understanding their long-term intentions.

It also places greater emphasis on maintaining good relationships with tenants, as satisfied tenants are more likely to stay for longer periods, even without a fixed-term agreement in place.

What does this mean for tenants?

For tenants, the move to periodic tenancies provides significantly more flexibility.

Rather than being locked into a long-term contract, tenants have the freedom to adapt their living arrangements as their circumstances change. This is particularly beneficial for those who may need to relocate for work, family or personal reasons.

It also reduces the pressure of committing to a long-term agreement upfront, making renting more accessible and adaptable.

Why this change matters

The introduction of periodic tenancies is a key part of the wider goal of the Renters’ Rights Act, which is to create a more balanced and flexible rental market.

While it offers clear advantages for tenants, it also introduces a different dynamic for landlords, where long-term occupancy is no longer guaranteed by contract but instead influenced by tenant satisfaction and market conditions.

This means landlords must take a more strategic approach to managing their properties, focusing not just on finding tenants, but on retaining them.

The importance of proactive property management

With increased flexibility for tenants comes increased responsibility for landlords.

Managing a periodic tenancy effectively requires strong communication, efficient processes and a clear understanding of the legal framework. Landlords must be prepared for changes in occupancy and ensure they can respond quickly when a tenant gives notice.

This is where professional property management can make a significant difference, helping to minimise void periods, maintain consistent rental income and ensure compliance with evolving regulations.

Need advice on managing periodic tenancies?

At Seths Estate Agents, we help landlords across Leicester adapt to these changes with confidence.

From tenant sourcing and referencing to full property management, we ensure your property is managed proactively and in line with the latest legislation.

If you are currently self-managing or working with another agent, now is the time to review your approach and make sure you are prepared for the new rules.

📞 Call our team on 0116 266 9977 for expert property management.