Since 1997 most lets have been assured shorthold tenancies with a fixed term of six or twelve months. The Act abolished them.
On 1 May 2026 every existing assured shorthold tenancy converted to an assured periodic tenancy, whatever was left of its fixed term. New tenancies can only be periodic.
What changed
- There are no more fixed terms, even when both sides want one.
- A tenant can end the tenancy at any time by giving two months' notice, usually ending on a rent day.
- A landlord can only end it on one of the statutory grounds, using a section 8 notice.
- Trying to grant a fixed term, or to end a tenancy with a notice to quit, is a breach that can bring a penalty.
- For new tenancies, you must give the tenant a written statement of the terms before the tenancy starts.
What it means for you
- Your secured income is now two months' rent, not the rest of a fixed term.
- Keeping a good tenant matters more than ever. A reliable tenant is worth more than a small rent rise.
- Check you can carry the property through an empty period, including council tax, insurance and the mortgage, not just lost rent.