Rolling Contracts: The Change to Assured Periodic Tenancies
- DNB Future Properties
- Dec 5, 2025
- 6 min read
Updated: Jan 23
The Renters' Rights Act 2025 creates a new standard for renting in the private sector: the change to Assured Periodic Tenancies (APT). This change effectively abolishes the widely used Assured Shorthold Tenancy (AST) and, with it, the concept of a fixed-term tenancy.
This fundamental reform eliminates the need for landlords and tenants to continually renew contracts, offering tenants greater flexibility and security while requiring landlords to manage their properties under a perpetual, rolling contract model.
The End of Fixed Terms
The legislation mandates that almost all new residential tenancies will be periodic from the start, usually running from month to month (or in line with the rent period, which is limited to a maximum of one month).
The Key Changes:
• Abolition of ASTs: The familiar AST, whether fixed-term or periodic, will be removed from the legislation. All new tenancies will be Assured Tenancies which are, by default, periodic.
• Conversion of Existing Tenancies: When the relevant parts of the Act come into force (on the 'Commencement Date,' anticipated in 2026), all existing fixed-term ASTs will automatically convert into Assured Periodic Tenancies at the end of their fixed term, if they haven't ended already.
• Invalid Clauses: Any clause in a new tenancy agreement that attempts to enforce a fixed term (e.g., a 12-month contract) or an option to renew will be legally invalid and unenforceable.
Security and Flexibility for Tenants
The primary beneficiaries of this change are tenants, who gain significant control over when a tenancy ends:
• No Mandatory End Date: The tenancy rolls on indefinitely until either the tenant decides to leave or the landlord uses a valid Section 8 ground for possession.
• Two Months' Notice: Tenants gain the flexibility to end their tenancy at any point by giving the landlord just two months' written notice. This removes the financial obligation of remaining in a property until a fixed term expires.
🧭 The Impact on Landlord Management
For landlords, the introduction of rolling periodic tenancies means less administrative work on renewals but introduces greater uncertainty over tenancy length and potential void periods.
1. Increased Risk of Voids
The certainty of a 6- or 12-month income stream is removed. Since a tenant can now issue two months' notice after the first 12 months (see Section 21 changes), landlords must adjust their financial forecasting to account for potentially shorter occupancy times and more frequent tenancy turnovers.
2. Mandatory Initial Protected Period
While the tenancy is rolling, the Act creates an initial 12-month 'protected period' during which landlords cannot use the new 'no-fault' possession grounds (like the intention to sell or move in). This ensures tenants have time to settle into their new homes without the immediate threat of being asked to leave.
3. Rent Review Management
As covered in the previous post, the shift to periodic tenancies means that Section 13 notices become the only mechanism for increasing rent, and this can only be done once every 12 months.
Your Action Point: Re-evaluating Vetting
With the removal of the guaranteed fixed term, the importance of thorough tenant vetting is significantly heightened. Landlords must focus on finding tenants who are stable, reliable, and likely to stay long-term to minimise the financial risk associated with increased void periods.
⚖️ Landlord Notice Periods: Section 8 vs. Section 21 (Abolished)
Old AST System (Pre-Act)
Section 21 (No-Fault) = 2 months notice
Tenant's Notice = Usually required to wait until the end of the fixed term, then 1 month notice.
New APT System (Post-Act)
Section 21 (No-Fault) = Abolished
Tenant's Notice = 2 months notice (at any time after the first 12 months).
🔑 Section 8 Grounds: Notice Periods Under the New Act
The length of notice you must give depends entirely on the ground you are using. The table below outlines the notice periods for the most common mandatory grounds introduced or amended by the Act:
Mandatory Ground (Landlord Must Prove)
Ground 8 (Amended) = Landlord Reason = Rent Arrears (Tenant owes 3+ months rent both at notice and hearing) - Required Notice Period = 4 weeks (1 month)
Ground 7A (Amended) = Landlord Reason = Anti-Social Behaviour (Severe, persistent, or proven criminal conduct). - Required Notice Period = Immediate to 4 weeks (Depending on the severity and type of behaviour).
Ground 1 (Amended) = Landlord Reason = Landlord or close family member intends to move into the property. = Required Notice Period = 4 Months
Ground 1A (New) = Landlord Reason = Landlord intends to sell the property (must be to an unconnected person) = Required Notice Period = 4 Months
Ground 6 (Amended) = Landlord Reason = Landlord intends to substantially redevelop the property. = Required Notice Period = 4 Months
💡 Key Takeaway: The shortest notice period (4 weeks) is reserved for serious fault-based issues like significant rent arrears or proven anti-social behaviour.
All grounds that allow the landlord to end the tenancy for reasons outside the tenant's control (selling, moving in, redevelopment) now require a lengthy 4-month notice period.
📑 Renters Rights Act 2025: Full Blog Series Index
This is one of a 10-part series exploring the Renters Rights Act 2025. Check out the rest of the posts below to understand all the changes coming to the private rented sector.
The Renter’s Rights Act 2025 formally known as the Renters Reform Bill has officially become law, bringing significant changes to the private rented sector in England.
The Landlord's Essential Guide to the Renter's Rights Act 2025 formally known as the Renter’s Reform Bill: 10 Critical Q&As. The Renters' Rights Act 2025 is a landmark piece of UK legislation designed to fundamentally rebalance the power dynamic in the private rented sector.
Read about how the end of 'no-fault' evictions will fundamentally change tenancy agreements and provide tenants with greater security of tenure.
Read about the new and reformed mandatory and discretionary grounds that landlords must now use when seeking to regain possession of their property
Discover the move away from fixed-term tenancies and how all new tenancies will now operate as periodic tenancies from day one.
We detail the new measures introduced to prevent landlords and agents from encouraging or participating in unfair rent bidding wars among prospective tenants.
Understand the new rule that restricts landlords from increasing rent more than once every 12 months, providing tenants with more financial certainty.
Explore the new legal duties placed on landlords to prevent discrimination against certain groups, particularly those receiving benefits or with children.
The Renters' Rights Act 2025 is not just about evictions; it’s about property quality. For the first time, the Decent Homes Standard (DHS), long applied to social housing, will be legally extended to the private rented sector.
We look at the new rules that make it easier for tenants to keep pets, requiring landlords to have a reasonable excuse to refuse a request.
Read about the role of the new Ombudsman and how it will provide a mandatory, impartial route for tenants and landlords to resolve disputes outside of court.
Read about the creation of the new portal that will require all landlords to register their properties and comply with certain standards to operate legally.
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