Periodic tenancies: How agencies can prepare for the Renters’ Rights Act

Originally published: November 2024

While the abolition of Section 21 has grabbed the headlines, it’s not the only significant change proposed by the Renters’ Rights Act.

The shift from fixed-term tenancies towards periodic tenancies also has some key implications for agencies.

In Goodlord’s State of the Lettings Industry report 2025, we found that on average, a quarter (27%) of agency revenue comes from renewal fees. In London, that number jumps to 37%. With the move to periodic tenancies, that revenue will disappear.

No matter how well a business is doing, losing a quarter of its revenue overnight creates a massive financial black hole. Preparation may be the only way some agencies survive under the Renter’s Rights Act.

In this blog, we’ll help you prepare for the changes and suggest ways you can replace any lost revenue.

• What is a periodic tenancy? 
• Fixed-term tenancies vs periodic tenancies
• How will periodic tenancies change under the Renters' Rights Act? 
• Why is the government proposing tenancy reform? 
• What challenges do these changes pose to letting agencies? 
• What opportunities do these changes provide to agencies? 
• Conclusion
• FAQs

What is a periodic tenancy?

A periodic tenancy is a tenancy with no fixed end date. Instead of running for a defined term (such as six or twelve months), it continues on a rolling basis until either the tenant or landlord gives notice in line with the law.

Some of the key features of periodic tenancy are:

• Rolling tenancy - most periodic tenancies run month-to-month or week-to-week, depending on how frequently rent is paid.
• Flexibility for tenants - tenants can leave a property on relatively short notice, rather than waiting for a fixed term to end.
• Fewer renewals - tenancies continue indefinitely until notice is served, which means fewer natural “reset points” for renewals and renegotiations.
• Rent reviews replace renewals - with no fixed terms in place, rent increases typically happen via Section 13 notices rather than at renewal.

Fixed-term tenancies vs periodic tenancies

For letting agents, fixed-term tenancies have traditionally been a win-win. On the one hand, they offer the security of long-term revenue. On the other hand, they provide defined start and end dates, which bring structure to tenancy management and create natural opportunities for renewals.

Those renewal points are commercially important. They trigger fees and provide agents with a clear opportunity to re-engage with landlords. As a general rule, agents may charge around an 8% fee on a 12-month contract with let-only landlords, roughly equivalent to one month’s rent.

Periodic tenancies, by contrast, currently sit in the background of the market and offer far fewer built-in touchpoints for agencies.

Before May 1, 2026, tenancies become periodic when no new rental agreement is signed. While this suits landlords and tenants who want continuity without paperwork, it reduces the number of planned interactions where agents typically add value and generate revenue.

Rent changes follow a similar pattern. Fixed-term tenancies tend to lock in rent for a set period, while periodic tenancies rely on Section 13 notices rather than renewals. As a result, agent involvement is often more ongoing and less predictable.

How will periodic tenancies change under the Renters' Rights Act?

The Renters’ Rights Act, effective from May 1, 2026, abolishes fixed-term tenancies and standardises periodic tenancies across the private rented sector. Alongside this, it introduces new rules on possession, notice periods, and rent increases.

Here’s what will change in practice:

All tenancies will become periodic

Fixed-term assured tenancies will be removed entirely. All new and existing assured tenancies will become periodic, regardless of the original rental agreement's length. Even tenancies signed before the Act comes into force will transition to a periodic structure.

This means tenancies will continue indefinitely, until the tenant gives notice or the landlord regains possession using a valid ground.

Abolition of Section 21 ‘no-fault’ evictions

Section 21 notices will be abolished, meaning landlords will no longer be able to regain possession without giving a valid reason. Instead, possession will be governed by the reformed Section 8 grounds, which have been clarified and expanded.

Standardised notice periods

Tenants will be able to end their tenancy at any point by giving two months’ notice. For landlords, however, notice periods will be linked to the specific ground for possession being used, with a minimum notice period of four months. For instance, under the reformed Section 8 rules, different grounds carry different notice requirements, along with conditions that must be met before notice can be served.

Rent increases are limited to once per year

Landlords may increase rent once per year to the market rate by serving a Section 13 notice with at least two months’ notice. Other methods of increasing rent will no longer be permitted. Tenants will have the right to challenge increases they believe are above market rate, making compliance and record-keeping more important than ever.

When viewed alongside the wider reforms in the Renters’ Rights Act, this marks the most significant shift in housing law since the Housing Act 1988.

For agents in England, it represents the biggest regulatory change since the Tenant Fees Act in 2019.

When will the Renter’s Rights Act be implemented?

The Renters’ Rights Act will be introduced in phases, rather than taking effect all at once. All changes relating to periodic tenancies will be implemented on May 1, 2026 (Phase 1), to “end the scourge of Section 21 ‘no-fault’ evictions as quickly as possible.”

From May 1, 2026, Assured Periodic Tenancies (APTs) will replace Assured Shorthold Tenancies (ASTs) as the default tenancy type across the private rented sector. Fixed-term tenancies and Section 21 evictions will be abolished immediately.

Phase 1 also reshapes how rent increases work under periodic tenancies. Rent will be limited to one annual increase, and informal rent increases and rental bidding wars will no longer be permitted.

Why is the government proposing tenancy reform?

According to its Guide to the Renters’ Rights Act, the Government’s primary motivation for tenancy reform is to “end the injustice of tenants being trapped paying rent for substandard properties and offer more flexibility to both parties to respond to changing circumstances.”

However, Goodlord’s data indicate that key stakeholders have mixed views on the proposed changes.

For example, 58% of letting agents believe that abolishing fixed-term tenancies will negatively impact the sector.

What challenges do these changes pose to letting agencies?

Without the revenue streams that fixed-term tenancies provide, letting agencies need to fill some big holes in their accounts. Additionally, the question of increasing agent workload looms. Here’s a look at the issue you’ll be contending with:

1 - Key revenue streams wiped out

Data from Goodlord’s State of the Lettings Industry 2025 report shows that 21% of agencies make up 50-100% of their revenue from renewals.

Under the new legislation, this revenue disappears. Most agencies will not be able to cope with a sudden financial black hole.

Another challenge is that most tenants will likely remain in their properties for much longer, and landlords may be less willing to pay high new let fees. This places the burden on agencies to absorb the costs.

The ability to charge landlords for processing tenancy renewals and to charge let-only landlords for the contracts they sign has also been eliminated.

2 - More potential admin and viewings

The legislation could increase tenant churn. This would cause agents to become bogged down in viewings and would also require them to relist the same properties more frequently.

Serving Section 13 notices and processing right to rent documentation and tenant deposits will further add to their paperwork, which is a significant concern.

What opportunities do these changes provide to agencies?

So far, we’ve outlined the realities agencies will face when fixed-term tenancies are abolished. But that’s not to say it’s all doom and gloom.

Landlords are also feeling the strain, and the increased administration, uncertainty, and red tape mean they’ll need more support from agencies.

Here’s how you can calm landlords’ fears and plug some of the revenue gaps caused by the shift towards periodic tenancies:

1 - Gain new business and upsell let-only landlords

In a no-fault eviction world, landlords were more confident about self-managing..

However, with new legislation and more compliance requirements, this confidence is likely to drain. Not only do you have the opportunity to onboard brand new clients, but you can also upsell your existing database of let-only landlords.

If a fully managed service isn’t something they’re interested in, you can still propose rent payment collection services to ease the load.

2 - Charge for Section 13 notices

Although the shift to periodic tenancies has eliminated rent renewals, rent reviews can help to fill the gap.

Under Section 13, landlords may increase rents once per year in line with market rates. And it’s likely they’ll pull this lever more often, following the abolition of Section 21.

Of course, this will result in more admin work, which you can handle for your clients.

Goodlord helps you to do this efficiently by simplifying the process of serving a Section 13 notice. For example, we remind you when rent reviews are due and provide clear audit trails to keep you compliant.

3 - Offer Rent Protection Insurance (RPI) to landlords

77% of landlords feel pessimistic about the private rental sector, according to Goodlord’s State of the Lettings Industry 2025 report.

And the government’s move to introduce “new protections for tenants who temporarily fall into arrears” could be the straw that breaks the camel’s back.

For example, the mandatory threshold for eviction due to arrears is increasing from two to three months, and the notice period is rising from two weeks to four.

As a result, landlords will likely be out of pocket for longer. But you can offer something to stop them from selling up.

Goodlord’s Rent Protection Insurance (RPI) pays out until vacant possession is obtained and has a £100,000 indemnity limit. We also handle the rent recovery and eviction processes for you.

Providing this to your clients allows you to add value without increasing your workload.

Conclusion

The shift from fixed-term to periodic tenancies marks a fundamental change in how the private rented sector operates. For letting agents, it removes familiar revenue streams and introduces the risk of higher churn and heavier admin.

What is clear is that the agent's role becomes more important, not less. As regulations increase and landlords face greater complexity, uncertainty, and risk, professional support becomes increasingly valuable. Agencies that adapt quickly — by repositioning their services, upselling management and rent collection, charging for rent reviews, and offering products like Rent Protection Insurance will be well placed to protect and grow their income

The Renters’ Rights Act is coming, and it will change the way the sector works. The agents who thrive will be the ones who understand the reforms best, communicate them most confidently, and turn disruption into an opportunity to become indispensable to their clients.