Renters Rights Act 2025: Abolishment of Assured Shorthold Tenancies

Renters Rights Act 2025: Abolishment of Assured Shorthold Tenancies

The government’s new Renters’ Rights Act has officially changed the landscape for private renting in England. One of the most significant changes is buried in Section 4A — and it marks the end of fixed-term Assured Shorthold Tenancies (ASTs) as we know them.

This change means that from now on, all new tenancies will be periodic by default, rolling from month to month or week to week, with no fixed end date. Here’s what that actually means in practice.

1. No More Fixed Terms

Under Section 4A, landlords can no longer grant a tenancy for a set term — for example, six or twelve months.

Any clause that tries to create a “fixed term” tenancy will simply be ignored by law. Instead, the tenancy will automatically continue as a periodic tenancy, renewing each rent period (usually monthly).

In other words, there’s no longer such a thing as a six-month or one-year tenancy. Every new tenancy will roll on indefinitely until it’s ended by either the tenant or the landlord giving notice.

2. The Rent Period Becomes the Tenancy Period

The new law ties the length of the tenancy period to the frequency of rent payments.

So, if rent is paid monthly, the tenancy period is one month.
If rent is paid weekly, the tenancy period is seven days.

This is important because landlords can no longer set unusual or extended rent periods (for example, quarterly or six-monthly rent payments). The legislation caps rent periods at no longer than one month.

3. What Happens If the Wrong Period Is Used

If a landlord’s tenancy agreement tries to include a fixed term or a rent period that doesn’t comply (for instance, quarterly rent), the law steps in and automatically converts the tenancy to a compliant form.

That means:

  • The tenancy becomes a monthly periodic tenancy; and
  • Rent is recalculated proportionally.

For example, if the rent was set at £900 every three months, the tenancy will be treated as monthly, with rent adjusted to £300 per month instead.

4. Flexibility to Change Rent Frequency

Landlords and tenants can still agree to vary rent frequency later — for example, from weekly to monthly — as long as each new rent period stays within the permitted limits (no longer than a month).

Other terms, such as rent amount or payment date, can also be varied by mutual agreement, just as before.

5. The Bigger Picture: Indefinite Renting Is Here

The abolition of fixed-term tenancies sits alongside other sweeping reforms, including the abolition of Section 21 “no-fault” evictions.

Together, these changes mean landlords will no longer be able to rely on the calendar to regain possession at the end of a fixed term. Instead, they’ll need to use the new, expanded possession grounds, such as:

  • Selling the property
  • Moving back in themselves
  • Rent arrears or breach of tenancy
  • Serious antisocial behaviour

In effect, the government has shifted the balance firmly toward open-ended tenancies, similar to systems seen in much of Europe.

When Will Fixed-Term Tenancies End?

Although the Renters’ Rights Act 2025 has now received Royal Assent, the abolition of fixed-term assured tenancies (ASTs) will not take effect immediately.

The government has confirmed that the new tenancy system—where all assured tenancies become periodic—will come into force on a date set by secondary legislation.

In practice, this means landlords can still use fixed-term ASTs for the time being. Current commentary suggests the change is unlikely to take effect before spring 2026, as the government has indicated it will provide at least six months’ notice before implementation.

Landlords should therefore start preparing now by reviewing tenancy templates, updating systems, and planning for the transition to an open-ended rental model.

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