A periodic tenancy is one that doesn’t have an end date set, as opposed to a fixed-term tenancy. This form of tenancy automatically rolls over at the end of each period (whether it’s month-to-month or week-to-week), providing both landlords and tenants with flexibility. But as flexible as it is, it also presents new problems, such as the unknown turnover of tenants and possible gaps in rental income.
In this post, we will look into the advantages and potential disadvantages of periodic tenancies, including the most recent changes under UK law and the Renters’ Rights Bill 2025. Knowing these, can you can make informed decisions about your rental contracts.
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What is a Periodic Tenancy Agreement?
It is a type of tenancy that continues indefinitely. Unlike a lease for a fixed term, periodic tenancies does not end on a certain date—rather, it automatically renews at the end of each period (month to month, week to week).
One of the advantages of periodic tenancies is that it creates flexibility to terminate the tenancy with short notice, which is convenient for both parties. But that flexibility is a two-edged sword. Landlords deal with turnover hassles, and tenants feel uncertain with no set end date.
Types of Tenancy Agreements
In the UK, tenancy types differ widely. Different rules and regulations govern all. Knowing these differences can be beneficial for tenants and landlords in the rental market.
Assured Shorthold Tenancy
It is the most popular form of tenancy in the UK. It relates to most private rentals, which usually begin with a fixed-term tenancy of either 6 or 12 months. Following the initial period, their tenancy automatically continues as a periodic tenancy. Until the landlord serves a lawful section 21 notice to evict the tenant, they have the right to occupy the property.
Non-Assured Shorthold Tenancy
There are certain situations when tenancy assured status may not apply. That applies to properties rented for under £250 per year or over £100,000 per year. Landlords do not have to put the tenant’s deposit in a deposit protection scheme and do not have to follow the normal rules for evicting tenants with these tenancies.
Assured Tenancy
A secure tenancy gives renters increased protection, more commonly used by housing associations. Renters in these leases benefit from long-term stability, but have fewer landlord rights than in other types of tenancies.
Excluded Tenancy
Mostly excluded tenancies are known as licences. It applies to tenants who live with their landlord (lodgers). Under excluded tenancies, the rules for eviction processes are more lenient, and tenants are often not entitled to the same protections as other renters.
Regulated Tenancy
A regulated tenancy is when the property was first let before 15 January 1989. Tenants in such arrangements get special rights, which include rent control and better protection against eviction.
Company Let
Company let is a form of tenancy between a company and a landlord, as opposed to a property being rented to a person or a family. They are subject to various rules, particularly in regard to deposit protection and eviction notices.
Fixed-Term Tenancy
A fixed-term tenancy is a rental agreement that has a specific start and end date, which is often 6 to 12 months. At the end of the term, it can turn into periodic tenancies by one of the parties not terminating it.
Short-Term Fixed Tenancy
These are tenancies of less than 12 months, typically about 90 days or fewer. They are often used for holiday lets or similar short-term arrangements.
Periodic Tenancy
As stated above, periodic tenancies is a rolling agreement that only ends when notice is given by one party to the other. It’s best for anyone seeking freedom without a set end date.
Statutory Periodic Tenancy
A statutory periodic tenancy is automatically created when a fixed-term tenancy comes to an end and the tenant stays without entering a new agreement. This form of tenancy gives the tenant certainty of term while also providing a simple transition from the fixed to the rolling contract.
Contractual Periodic Tenancy
A contractual periodic tenancies is one that is agreed upon explicitly in the initial contract. This can be set from the start or decided just before the fixed-term tenancy expires.
for further information, refer to the official UK government office guide for landlords (England and Wales): Tenancy types
How Can I End a Periodic Tenancy?
Landlords and tenants both have the right to terminate periodic tenancies. But it requires them to take legal steps.
Tenant’s Rights to End the Tenancy
- Tenants are entitled to give notice to terminate the tenancy. However, its duration needs to correspond with the rental period. For example, if the monthly tenancy started on the 1st, then the tenant’s notice also has to end on the 31st or 1st.
- In a statutory period tenancy, renters are required to give at least one month’s notice in respect of a monthly tenancy and four weeks’ notice in respect of a weekly tenancy. The notice has to terminate on the first or last day of the rental term.
Landlord’s Rights to End the Tenancy
- Landlords are required to serve a written notice to quit to end the tenancy. The notice must contain the proper legal information and terminate on the last day of the rental period. For statutory periodic tenancies, a section 21 notice is necessary, where the tenant must be given at least two months’ notice.
How Periodic Tenancies Benefit Landlords
There are many benefits to landlords of periodic tenancies, including flexibility and less paperwork. There’s no need for renewing contracts, unlike fixed-term tenancies, so administration costs are eliminated. If a tenant refuses to pay rent or violates the agreement, it’s easier to regain possession without having to wait out a fixed contract.
Additionally, landlords have the right to increase rents more frequently in periodic tenancies, which may facilitate market rate adaption.
Read more: Renters’ Rights Bill 2025: Full Guide for Landlords & Tenants
What Are the Risks of Periodic Tenancies for Landlords?
Periodic tenancies are not without risk. For instance, the tenant can suddenly move out without warning, resulting in gaps in rental income. Landlords also have to deal with the issue of tenant turnover and void periods where the property lies empty.
Inconsistent Rental Income
For landlords, one of the biggest downsides is inconsistent rental income. Periodic tenancies are not fixed leases, so tenants can give notice at any time and the property can be left vacant, leaving the property vacant, which results in a void in rental income.
Difficulties in Ending Tenancies
While periodic tenancies give you more flexibility, it can be hard for landlords to terminate them on short notice. Legal proceedings may move more slowly than desired, particularly when they involve the issuance of eviction notices.
Lack of Tenant Commitment
Tenants in periodic tenancies may not feel as obliged to stay in the long term, which leads to more short-term occupation and churn.
Read more: Right to Rent Share Code: The Complete Tenant & Landlord Guide
How Will Periodic Tenancies Change Under the Renters’ Rights Bill?
The Renter’s Rights Bill 2025 is going to involve some major changes regarding periodic tenancies. It will end fixed-term tenancies, with periodic tenancies to become the norm. This reform will do more to protect tenants, though landlords may need to learn new rules for eviction and rent increases.
How Agencies Can Prepare for the Renters’ Rights Bill
Letting agencies will need to adjust their processes to accommodate the changes introduced by the Renters’ Rights Bill 2025. Agencies may face challenges such as managing tenant turnover, dealing with shorter leases, and providing adequate tenant vetting.
Key Challenges Faced by Agencies
Agencies will need to adapt to new rules surrounding eviction and rent payment processes. Shorter notice periods could increase administrative tasks.
Opportunities for Agencies
Despite the challenges, there are opportunities for agencies to expand services like rent protection and property management, increasing their revenue streams.
What Are the Tenant Rights and Responsibilities in Periodic Tenancies?
Tenants in periodic tenancies have the right to secure living conditions, protection from unfair eviction, and the right to a safe, habitable property. They must also uphold their responsibilities, including paying rent, maintaining the property, and respecting the landlord’s rules.
Rights of Tenants in a Periodic Tenancy
Tenants are entitled to protections under the Renters’ Rights Bill 2025, including safeguards against eviction and disrepair.
Tenant’s Obligations and Duties
Tenants must continue to fulfill their obligations, such as paying rent on time and maintaining the property, to avoid disputes.
Conclusion: Is a Periodic Tenancy a Good Option?
For both landlords and tenants, a periodic tenancy offers flexibility but comes with some uncertainties. It’s a great option for those who prefer not to commit to a fixed-term tenancy, but may not be ideal for those seeking long-term stability.
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