A Complete Guide to Periodic Tenancy (After the Renters' Rights Act 2025)

If you let property in England, your tenancy is almost certainly periodic now. Even if your tenant signed a 12-month assured shorthold tenancy a year ago, even if the rent agreement still says 'fixed term', and even if the tenant has not yet been told. The Renters' Rights Act 2025 made periodic-from-grant the default for every new assured tenancy in England, and converted every existing fixed-term AST to periodic, on 1 May 2026.

This page is the definitional orientation guide for the periodic-tenancy concept itself. It sits upstream of the operational deep-dives we already publish on the day-of-conversion compliance bundle, the Section 13 rent-rise procedure, and the reformed Section 8 possession grounds. Read this page first if you have heard the phrase 'your tenancy is now periodic' and need to understand what it actually means before you engage with the mechanics.

What Changed on 1 May 2026

The substantive tenancy-reform Part of the Renters' Rights Act 2025 (2025 c. 26) was brought into force via SI 2026/421 (the Commencement No. 2 and Transitional and Saving Provisions Regulations 2026) on 1 May 2026. The single most important consequence is the periodic-from-grant default: every new assured tenancy in England is periodic from the day it is granted, and every existing fixed-term assured shorthold tenancy converted to periodic on commencement day.

Three other major changes landed on the same day:

• Section 21 abolished. RRA 2025 s.2 directs the omission of HA 1988 Part 1 Chapter 2 (the entire assured shorthold tenancy chapter) plus s.6A (anti-social-behaviour demotion). No-fault eviction is no longer an available route. Possession is by reformed Section 8 grounds only.
• Six-monthly and annual rent periods abolished. The rent period is capped at monthly for new assured tenancies. Quarterly or annual rent contracts are unenforceable in the assured regime.
• Advance-rent prohibitions. RRA 2025 s.9 amends the Tenant Fees Act 2019 to make pre-tenancy advance-rent a prohibited payment; RRA 2025 s.8 inserts HA 1988 s.4B making post-tenancy terms requiring advance rent 'of no effect' subject to narrow carve-outs.

What Is a Periodic Tenancy, in One Paragraph?

A periodic tenancy is a tenancy where the tenant has the right to occupy on a recurring rent-period basis, with no fixed end date in the contract. Post-RRA-2025 the rent period is capped at monthly for new assured tenancies in England. The tenant ends the tenancy with 2 months' written notice under Protection from Eviction Act 1977 s.5(1ZA), inserted by RRA 2025 s.5. The landlord ends it by serving a reformed Section 8 notice on one of the statutory possession grounds. Section 21 no-fault eviction is abolished by RRA 2025 s.2.

Compared to a fixed-term tenancy (where both parties are bound to the end date) or a tenancy at will (where either party can end the tenancy immediately), a periodic tenancy is the middle position: open-ended on the landlord side without specific grounds, but with a 2-month tenant exit clock that gives flexibility on the tenant side.

The Four Routes by Which a Tenancy Becomes Periodic

Four routes operate in parallel.

1. Periodic from grant. The post-RRA default. Every new assured tenancy in England entered into on or after 1 May 2026 is periodic from the day it is granted. The route does not require any expiry of a notional fixed term to take effect; the tenancy is periodic on day one.
2. Statutory periodic under HA 1988 s.5. Where a pre-RRA AST fixed term had expired and the tenant remained in occupation, HA 1988 s.5 converted the tenancy to a statutory periodic at that point. The route survives in two narrow cases: transitional pre-1-May-2026 conversions that completed before the RRA commencement, and tenancies that sit outside the assured regime. Subsections of s.5 dealing with the statutory-periodic mechanic on AST expiry are now of reduced practical relevance for newly converting tenancies because the RRA default covers the ground.
3. Contractual periodic. Where the tenancy agreement itself describes a rolling tenancy with no fixed term. Less common post-RRA because contractual fixed-term clauses over six months are not enforceable in the assured regime.
4. Common-law periodic. Implied by conduct. Where a landlord accepts rent on a recurring basis without a written tenancy agreement, the acceptance creates an implied periodic tenancy by conduct. The rent period is determined by the cadence of payment (monthly rent paid monthly creates a monthly periodic tenancy at common law). The common-law route operates in default of a written agreement and rarely yields the assured-tenancy protections that the statutory regime confers.

In a single portfolio in 2026, all four routes can coexist. A flat let in June 2026 is periodic-from-grant. A flat let in March 2025 on an AST converted to periodic on 1 May 2026 by RRA commencement. A flat let in January 2024 on an AST that expired in January 2025 became statutory-periodic under HA 1988 s.5 in January 2025, then converted to RRA-default periodic on 1 May 2026. A flat let by oral agreement with rent accepted monthly is common-law periodic. From 1 May 2026 onward, all four are operationally identical assured periodic tenancies.

The route by which the tenancy arrived at periodic status matters for one practical reason only: the audit trail you need to keep for compliance evidence. A landlord whose tenancy arrived at periodic by SI 2026/421 conversion (route a) keeps the original AST plus the dated commencement-day file note. A landlord whose tenancy arrived by HA 1988 s.5 statutory periodic in 2023 (route b) keeps the original AST plus the date the fixed term expired plus evidence of continued occupation. A landlord on a contractual-periodic agreement (route c) keeps the original signed agreement. A landlord on common-law periodic (route d) keeps the rent-receipt history that evidences the conduct-based tenancy. From 1 May 2026 onward, the same operational rules apply to all four.

The Standard Rent Period Is Now Monthly

RRA 2025 caps the rent period at one month for new assured tenancies. Six-monthly and annual rent contracts are unenforceable. The change shifts the cashflow rhythm for landlords at the higher end of the market who previously took rent quarterly or six-monthly.

For tax purposes, the cash basis under ITTOIA 2005 s.271A (the default for individuals with combined property and trading turnover under £150,000) follows the actual receipt point. Monthly rent collection generally smooths rental-income recognition across the tax year compared to quarterly or annual receipts. Where a landlord remains on the accruals basis by election, the rent period is recognised on accrual rather than receipt, but the cashflow rhythm itself is now monthly.

Tenant Notice Rights: Two Months, Always

The tenant can end the tenancy at any point with 2 months' written notice under PEA 1977 s.5(1ZA), inserted by RRA 2025 s.5. There is no minimum-occupation lock-in and no requirement to wait until a 'natural end' of a notional fixed term. The tenant cannot be required to pay rent beyond the notice period or charged an early-departure fee.

The operational consequence for landlords is shorter average tenancy length and higher void-period exposure across a portfolio over time. A landlord planning for tenant retention now models from a two-month flexibility window rather than from a fixed-term anchor. In our experience advising on landlord cashflow modelling, two-month notice flexibility tends to lengthen rather than shorten the average occupation period in the lower-rent segment (tenants who have flexibility on exit do not feel locked in and therefore stay longer), but shortens it in the higher-rent segment (where mobile professional tenants exit faster against shorter notice). Portfolio modelling should adjust for the tenant profile rather than apply a single rule.

Landlord Notice Rights: Possession via Reformed Section 8 Only

Section 21 no-fault eviction is abolished. Possession is by reformed Section 8 grounds only. The reformed Section 8 grounds bundle (introduced by RRA 2025 s.3 and the substituted Schedule 1 to HA 1988) restructures the previous 17-ground architecture. Selected operative grounds:

• Ground 8: 8 weeks' rent arrears at notice date and at hearing (mandatory ground).
• Grounds 10 and 11: persistent arrears (discretionary).
• Ground 12: breach of tenancy obligation (discretionary).
• Ground 14: anti-social behaviour (mandatory in serious cases; 2 weeks' notice).
• New landlord-sale ground: 4 months' notice; 12-month re-letting restriction under new HA 1988 s.16E inserted by RRA 2025 s.15. Re-letting within the restriction window triggers a financial penalty.
• New landlord-occupation ground: same 12-month re-letting restriction; intended to allow recovery for the landlord's own use or for close family.

Notice periods range from 2 weeks (anti-social behaviour in serious cases) to 4 months (landlord-sale and certain structural grounds). The deep dive at renters' rights act possession grounds reform walks the grounds in full operational detail, including notice form requirements and the evidence threshold for each.

Rent Rises: Section 13 Only, Once per 12 Months, Tribunal Capped at Your Proposed Amount

Rent on a periodic assured tenancy can be increased via Section 13 of the Housing Act 1988 as amended by RRA 2025 s.6. The procedure runs:

1. One increase per 12-month period under new HA 1988 s.13(4A). No more frequent.
2. Two months' written notice on the prescribed Section 13 form.
3. Tenant response options: accept and pay the new rent; or apply to the First-Tier Tribunal (Property Chamber) for determination.
4. The tribunal can set rent at market level but cannot exceed the landlord's proposed amount. This is the single sharpest practical point on the new regime, and the most common mis-stated framing in third-party explainers.

Contractual rent-review clauses in the original tenancy agreement are unenforceable for rent increases under the assured regime. Section 13 is the only route. The deep dive at renters' rights act rent increase Section 13 tribunal route walks the procedural mechanics and the tribunal evidence threshold.

The Advance-Rent Trap: No More 6 Months Upfront

One of the most common pre-RRA practices at the higher end of the market was demanding 6 or 12 months' rent upfront as a deposit-substitute, particularly for international tenants without UK credit history. The practice is now closed.

• Pre-tenancy: any pre-lease rent payment is a prohibited payment under the Tenant Fees Act 2019 as amended by RRA 2025 s.9.
• Post-tenancy: tenancy terms providing for rent due more than one rent-period in advance are 'of no effect' under HA 1988 s.4B inserted by RRA 2025 s.8.
• Permitted carve-outs: rent for the 'permitted pre-tenancy period' (the gap between contract execution and the first day of the tenancy) and rent for the 'initial 28-day period' of the tenancy.

The deposit cap under the Tenant Fees Act 2019 remains five weeks' rent (six weeks where annual rent exceeds £50,000). Advance rent cannot be used to top up the deposit beyond that ceiling.

Deposit Mechanics: Unchanged Cap, Three Schemes, 30-Day Window

The deposit cap remains five weeks' rent for tenancies where annual rent does not exceed £50,000, or six weeks' rent where annual rent exceeds £50,000, under the Tenant Fees Act 2019. The deposit must be protected in an authorised scheme (DPS, TDS, or mydeposits) within 30 days of receipt under Housing Act 2004 ss.212-215, with the prescribed information served on the tenant in the same window.

Failure exposes the landlord to a court-ordered penalty of 1x to 3x the deposit amount. Pre-RRA, the consequence of non-compliance also included a bar on Section 21 notices; that consequence is no longer operative because Section 21 itself is abolished. The 3x penalty survives as the live deterrent. Deposit protection now matters because of the penalty alone, not because of any knock-on possession-route consequence.

Tax-Side Recognition for Landlords on a Periodic Tenancy

Several touch-points worth surfacing as a closing block.

• Rental income recognition. Cash basis under ITTOIA 2005 s.271A is the default for individuals with combined property and trading turnover under £150,000. Receipt-point recognition; monthly rent receipts smooth recognition across the tax year.
• Void-period deductions. Costs incurred during void periods (council tax where landlord-responsible, utilities, building insurance, mortgage interest, agent retainer fees) remain deductible as expenses of the property business. Voids do not break business continuity for tax purposes. The property business continues as long as the property is held out for letting and the void is consistent with normal market vacancy.
• Section 24 reducer interaction. Mortgage interest under the Section 24 restriction is converted to a 20 percent basic-rate reducer regardless of tenancy type. The interaction worth flagging is between the once-per-12-months Section 13 rent-rise cadence and rising mortgage interest. Where mortgage interest rises faster than the annual permitted rent uplift (in a rising-rate environment), the cashflow squeeze becomes a tax-reducer-binding squeeze earlier than under a free contractual rent-review regime. Periodic-tenancy cashflow modelling should anticipate the Section 13 cap.
• CGT on eventual sale. Base cost is unaffected by tenancy type. The final 9 months of ownership are deemed-residence under TCGA 1992 s.223(1) at the end of ownership only, regardless of whether the tenancy that ended in that window was periodic or fixed-term.

The tax architecture is, in other words, broadly indifferent to the move from AST-with-statutory-periodic-on-expiry to periodic-from-grant. The shift matters for compliance and operational reasons. It is not a tax restructuring in itself.

Does This Apply in Wales or Scotland?

No. The Renters' Rights Act 2025 substantive reform applies to England only. Wales operates under the Renting Homes (Wales) Act 2016 (occupation contracts; different terminology and a different commencement timeline). Scotland operates under the Private Housing (Tenancies) (Scotland) Act 2016 (private residential tenancies; different tenant-notice and rent-increase mechanics). Each devolved regime uses different statutory language and different operational mechanics. The framework on this page applies to England-only assured tenancies; do not collapse the three positions.

For an England landlord whose tenancy is now periodic and who needs to act on the conversion, the next stop is our sibling deep dive at periodic-tenancy default AST conversion mechanics for the day-of-conversion checklist, or landlord obligations on the periodic switch for the full compliance bundle.