Preparing for the New Tenancy System: From Fixed-Term to Rolling Contracts

The new tenancy laws introduced in the UK under the Renters’ Rights Bill 2025 have transformed how landlords and tenants manage rental agreements. The most significant change is the abolition of fixed-term tenancies, replaced in 2025 by periodic tenancies, also known as rolling contracts.

This new system aims to provide greater stability for tenants while still allowing landlords to manage their properties effectively. Understanding how these changes work and how they impact your existing agreements is essential for all landlords in 2025.

Are Fixed-Term Tenancies Ending?

Yes. Under the new tenancy laws in the UK, fixed-term tenancies commonly known as Assured Shorthold Tenancies (ASTs), are being abolished.

Every new tenancy will automatically convert into a periodic tenancy, continuing indefinitely until either the tenant gives notice or the landlord regains possession through a valid legal ground.

This change represents a fundamental shift in the private rental sector. The government’s goal is to create flexibility for tenants, allowing them to move out without waiting until the end of a six- or twelve-month contract. It also means landlords must now adjust their letting processes to comply with ongoing, open-ended tenancies rather than time-limited agreements.

What Are Periodic Tenancies 2025?

A periodic tenancy is a rolling agreement with no fixed end date. Instead of being tied to a specific term, it renews automatically each month or week, depending on how rent is paid. Either the tenant or the landlord can end the tenancy by serving proper notice under the new legal framework.

Key features of periodic tenancies 2025 include:

Tenancies run indefinitely until notice is given.
Tenants can leave by giving two months’ notice.
Landlords can only end a tenancy for approved reasons.
Rent can be reviewed periodically, but must reflect fair market value.

This model brings the UK closer to systems already used in many European countries, where renters enjoy long-term security. At the same time, landlords retain the right to recover their property for legitimate reasons.

Why Fixed-Term Tenancies Were Abolished

The government’s decision to abolish fixed terms stems from concerns that short tenancies encouraged instability and insecurity. Many tenants faced repeated renewals, unexpected rent increases, or evictions when a fixed term expired.

By introducing rolling contracts, the government aims to:

Give tenants confidence to settle without fear of sudden eviction.
Reduce administrative burdens associated with renewals.
Simplify rent adjustment and notice procedures.
Encourage fairer, more transparent landlord-tenant relationships.

However, this reform also places greater responsibility on landlords to properly manage compliance, communication, and legal notices.

How Will Rolling Contracts Affect Rent and Notice Periods?

Under the new tenancy laws in the UK, both rent and notice periods will operate under standardized rules for periodic tenancies in 2025.

Rent Adjustments:

Landlords can still increase rent, but they must follow the official rent increase process. This requires written notice using the prescribed government form, giving tenants adequate time to respond or challenge increases through the First-tier Tribunal if they believe the rise is unfair. Spontaneous or unagreed rent hikes are no longer allowed.

Notice Periods:

Tenants can end the tenancy with two months’ notice, regardless of how long they’ve lived in the property.
Landlords can only serve notice based on a recognized ground under Section 8, such as selling, moving back in, or rent arrears.
The exact notice period will depend on the grounds used, but typically ranges from 2 weeks (for severe arrears) to 2 months (for selling or moving in).

This balanced framework aims to prevent exploitation while allowing landlords to manage legitimate business needs.

What Happens to Current Agreements?

Existing fixed-term tenancies signed before the law came into effect will remain valid until their agreed end date. Once the term ends, they will automatically transition into rolling periodic contracts under the new system.

For example:

A 12-month AST signed in early 2025 will remain in effect until its expiry.
When it ends, it will automatically become a rolling tenancy, subject to the new rules.

Landlords should prepare by reviewing existing agreements, ensuring that future contracts comply with the updated format, and adjusting systems for notice management and rent reviews.

It’s important to remember that landlords can no longer rely on Section 21 to regain possession at the end of a fixed term. All evictions must now go through the revised Section 8 grounds.

Impact on Landlords

The abolition of fixed-term tenancies means landlords must adopt a more structured approach to managing properties. Without a defined end date, landlords should focus on long-term tenant relationships and compliance.

Key adjustments include:

Better tenant screening to reduce long-term risk.
Improved record-keeping, especially for rent arrears or breaches.
Regular inspections to monitor property condition under ongoing agreements.
Updated tenancy documentation reflecting the new rolling format.

While some landlords worry about reduced flexibility, the new system also reduces the need for repeated renewals and paperwork. With substantial legal grounds for possession and proper evidence, landlords can still regain control of their properties efficiently.

Benefits of Periodic Tenancies for Landlords

Though the reforms may seem restrictive, periodic tenancies 2025 offer advantages to well-prepared landlords:

Simplified renewal process no need to reissue contracts annually.
Consistent income from long-term tenants.
Reduced void periods due to greater tenant stability.
Easier compliance tracking, since rules are standardized.

Moreover, landlords who maintain well-kept properties and follow fair practices are likely to attract reliable, long-term tenants who appreciate the security the new system provides.

Practical Steps for Landlords to Prepare

To transition smoothly into the new system, landlords should:

Review all tenancy templates to remove fixed terms and reflect rolling clauses.
Understand Section 8 reforms and the new eviction grounds.
Update rent review procedures to follow the official notice process.
Ensure compliance with safety, deposit, and licensing requirements.
Join a landlord association for ongoing legal updates and support.

Taking these steps now will help landlords remain compliant, reduce disputes, and avoid unnecessary legal complications once the law is fully operational.

Common Landlord Questions Answered

Are fixed-term tenancies ending?

Yes. All new tenancies will become open-ended periodic agreements once the new UK tenancy laws take full effect.

How will rolling contracts affect rent and notice periods?

Rent increases must follow formal notice requirements, and tenants can give two months’ notice to leave. Landlords can only serve notice based on approved legal grounds.

What happens to current agreements?

Existing fixed-term contracts will continue until expiry, after which they automatically convert into rolling periodic tenancies in 2025.

Read our top-read blogs:

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Need help now? Contact Landlord Advice UK today for tailored guidance and practical support to future-proof your rental business.