Most private tenancies currently start as a fixed term assured shorthold tenancy (AST). This is set to be abolished and replaced by periodic tenancies with a monthly rental period when the Renters Reform Bill is passed (currently estimated to come into force on 1 October 2024).
A fixed term tenancy is an agreement that you will rent your home for a set amount of time. Typically a fixed term is between 6 months and 3 years, although it can be less or more. This is seemingly because a landlord would not be able to get possession on a no fault section 21 notice before 6 months of granting the original AST (s.21(4B) Housing Act 1988) and an AST longer than 3 years would have to be by way of a deed (s.52(1) and s.54 Law of Property Act 1925) which has more technical requirements.
There are 3 options when a fixed term AST ends.
1. You can sign a renewal agreement for a new fixed term;
2. Let it become a periodic (rolling) tenancy; or
3. Leave the tenancy.
A statutory rolling tenancy starts when a fixed-term AST expires. A contractual rolling tenancy follows the initial fixed term only when there is a specific clause stating that a periodic tenancy will follow after the fixed term ends.
The positive and negatives for a tenant of signing a new fixed term or letting it become a rolling tenancy are discussed below.
Set end date
Fixed term
Yes. Although, unless there is a valid break clause a tenant will not be able to give notice to end the tenancy early.
Rolling
No. Tenants can give notice to leave at any time. This can be agreed with the landlord or you can give a formal notice to quit (generally 1 months notice if the rent is paid monthly, although a longer notice periodic can apply if you have a ‘notice clause’ and you have a contractual periodic tenancy).
Changing terms and conditions such as rent
Fixed term
Difficult. Your rent can only increase if you agree, or you have a rent review clause in your tenancy.
Rolling
Easier. Your rent can, in addition to agreement or a rent review clause, also be increased by your landlord using a s.13 notice (a formal increase which gives you at least 1 months notice – see Form 4 at https://www.gov.uk/guidance/assured-tenancy-forms).
Eviction
Fixed term
Difficult. Eviction is generally only when there is a valid reason such as missed rent payments. No fault eviction (s.21) only possible if there is a valid break clause or the fixed term expires after 6 months.
Rolling
Easier. Both fault and no fault eviction notices can be used at any time.
Generalised Summary
Fixed term tenancy:
◦ More certainty
Rolling tenancy:
◦ More flexibility
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