Abolishment of Fixed-Term Tenancies
The Renters Rights Bill will bring to an end fixed-term shorthold tenancy (ASTs). These tenancy agreements have, for many years, been the standard contractual arrangement between landlords and tenants in the private sector, typically running for a fixed period – usually six to twelve months, but sometimes longer depending on the agreement.
What Are The New Changes?
Under the new legislation, all new tenancies will become periodic (rolling) tenancies. This means:
- No fixed end date will be set at the start of the tenancy;
- Landlords will avoid administrative burdens related to tenancy renewals;
- Tenants will have the flexibility to give 2 months’ notice;
Why Are These Changes Happening And What Does It Mean For Landlords?
The Government says the aim of the new legislation is to enhance tenant security and stability. Landlords should be aware that the removal of fixed term limits means:
- Tenants may give 2 months’ notice to end a tenancy;
- Landlords seeking possession of their property will have to rely on using a Section 8 Notice.
When Are The Changes Coming Into Effect?
The Bill is still progressing through Parliament and expected to be receive royal assent at the end of 2025. All tenancies at this date will automatically convert to a periodic tenancy.
It is expected that landlords will be required to inform the tenant of the new changes however the tenancy agreement will still remain valid. Any new tenancies granted on the effective date must be a periodic tenancy.
Assured Shorthold Tenancy Templates
To support landlords during the transition the range of tenancy agreements will be updated as new changes are introduced. Landlords may continue to use existing Assured Shorthold Tenancy (AST) templates until the legislation is formally enacted.
Please view the full range of our professionally drafted Assured Shorthold Tenancies within Property.
