Going Periodic: What Happens When a Tenancy’s Fixed Term Ends?

If you’re a landlord, understanding periodic tenancies is key to managing your rental property confidently.

These types of tenancies often come into play after a fixed-term agreement ends, giving both you and your tenants more flexibility.

In this guide, we’ll explain what a periodic tenancy is, how it works, and what you need to do to stay compliant with your legal obligations.

You’ll also find out how to correctly serve notice on a periodic tenancy, ensuring you follow the proper procedures.

1. What is a periodic tenancy?
2. The Renters’ Rights Bill and periodic tenancies
3. How do periodic tenancies start?
4. How long does a periodic tenancy last?
5. How to increase the rent
6. How to serve notice
7. What happens when only one tenant wants to leave?

What is a periodic tenancy?

A periodic tenancy is a type of rental agreement that automatically renews at the end of each rental period, which could be weekly or monthly, depending on how often rent is paid.

Unlike a fixed-term tenancy, which has a clear start and end date, a periodic tenancy continues indefinitely until either the landlord or tenant gives proper notice to end it.

This type of tenancy is sometimes referred to as a “rolling contract” because it rolls over after each period.

The Renters’ Rights Bill and periodic tenancies

The Renters’ Rights Bill aims to eliminate fixed-term assured tenancies entirely. If the Bill passes into law as proposed, all tenancies would automatically convert to periodic agreements, allowing tenants to remain in the property until they choose to end the tenancy by providing two months’ notice.

Moreover, landlords would no longer be able to serve Section 21 or old-style Section 8 notices to evict tenants.

Instead, landlords would need to rely on the “clarified” and “expanded” Section 8 grounds for possession, requiring notice periods that range from two weeks to four months, depending on the ground.

Government guidance suggests this would end the “injustice of tenants being trapped paying rent for substandard properties” and “offer more flexibility to both parties” to respond to changing circumstances.

It’s worth noting that the Renters’ Rights Bill only applies to England. Also, the Bill is most likely to undergo significant changes before it passes into law, if it does at all.

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You might also be interested in…

• A Guide to Tax Deductible Costs for Your Landlord Tax Return
• When Will Section 21 Evictions Be Scrapped?
• How to Serve a Section 21 Notice to Tenants
• What’s a Good ROI for a Buy to Let Property in the UK?
• Tenant Fees Act 2019: A Guide for Landlords

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How do periodic tenancies start?

There are a couple of common ways a periodic tenancy can be created:

1. After a fixed-term tenancy ends

If your tenant’s fixed-term tenancy (such as a six or 12-month agreement) comes to an end and neither party takes action to renew or terminate the contract, the tenancy will automatically roll over into a periodic tenancy.

This happens by default, and the original terms of the fixed-term contract will still apply, except now there is no set end date.

This is known as a statutory periodic tenancy.

2. Agreed upon from the start

In some cases, landlords and tenants may agree to start a tenancy as a periodic arrangement right from the beginning.

This is less common but can work well when both parties prefer flexibility rather than being tied into a longer contract.

In this case, the tenancy period (usually aligned with the rent payment cycle) is agreed upfront, and the tenancy runs on that basis until notice is given by either side.

How long does a periodic tenancy last?

A periodic tenancy has no fixed end date and continues until either party decides to terminate it by serving the appropriate notice.

The tenancy renews at the end of each rental period, which is typically linked to how often rent is paid:

• If rent is paid monthly, the tenancy rolls over monthly
• If rent is paid weekly, the tenancy rolls over weekly

The key feature of a periodic tenancy is its flexibility. This can be beneficial for both landlords and tenants, as it allows for adjustments to the arrangement without the constraints of a fixed-term contract.

However, it also requires landlords to be familiar with the proper notice periods and legal obligations that apply to ending the tenancy, which we’ll cover next.

How to increase the rent

Section 13 of the Housing Act 1988 outlines the process for landlords to increase rent on a statutory periodic tenancy. 

If the tenancy agreement includes specific terms regarding rent increases, you should follow those provisions.

You can issue a Section 13 notice to increase the rent once a year, and the notice period required for the increase to take effect varies depending on the rental period.

• For tenancies with rental periods of one month or less, a minimum of one month’s notice is required
• For yearly tenancies with rental periods of a year, you must provide your tenants with six months’ notice

In other cases, the notice period should match the tenancy period.

How to serve notice

Serving notice correctly is vital to make sure that the tenancy is legally terminated. The notice must be in writing and clearly specify the intention to end the tenancy.

It should also detail the date on which the tenancy will end, adhering to the legal requirements set out in the Housing Act 1988.

Ending a periodic tenancy as a landlord

As a landlord, there are two main methods to serve notice and end a periodic tenancy: Section 21 and Section 8 notices. Here’s what you need to know:

1. Section 21 notice

A Section 21 notice allows you to regain possession of your property without needing to provide a specific reason. However, there are some important considerations to keep in mind.

You must give at least two months’ notice. The notice period must end on the last day of a rental period, meaning if your tenant pays rent monthly, the notice should specify a date that aligns with this cycle.

Moreover, before serving a Section 21 notice, make sure you’ve met all your legal obligations, including providing your tenants with an up-to-date gas safety certificate, among other requirements.

If you need to serve a Section 21 notice to your tenants, you can use our free notice-serving tool, which helps ensure that you do everything by the book.

2. Section 8 notice

A Section 8 notice is used when a tenant has violated the terms of the tenancy agreement. The grounds for eviction can vary, so you need to make sure you understand which apply in your case.

The required notice period for a Section 8 notice can range from two weeks to two months, depending on the grounds for eviction. For example, if a tenant is in serious rent arrears, a shorter notice period may apply.

When serving a Section 8 notice, you must clearly state the grounds for seeking possession. Some grounds are mandatory (the court must grant possession), while others are discretionary (the court will consider the evidence).

Ending a periodic tenancy as a tenant

When a tenant wants to end a periodic tenancy, they are usually required to give at least one month’s notice for monthly rentals or four weeks’ notice for weekly rentals, with the tenancy concluding at the end of the rental period.

For example, if they pay rent on the 15th of each month, their notice should ideally end on the 14th of the following month.

This notice must be in writing and clearly state their intention to leave, including the move-out date, aligning with the rental payment cycle.

What happens when only one tenant wants to leave?

In a periodic tenancy with two or more joint tenants, any one tenant can end the tenancy by serving a notice to quit.

The tenant needs to give at least one month’s notice to terminate the tenancy at the end of the next rental period unless the agreement specifies a different notice period.

It’s important to remember that this action will also terminate the tenancy for the remaining joint tenants.

If the remaining tenants choose to stay and continue paying rent, the original tenancy – including its terms – will have been terminated. Therefore, it’ll be in everyone’s interest to reach a new agreement as soon as possible. 

Ideally, the landlord and remaining tenant/s should negotiate and sign a new tenancy agreement during the notice period to ensure a smooth transition when the old one ends.

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