ASTs are going - replaced by a Single system of periodic tenancies

Fixed-term Assured Shorthold Tenancies (ASTs) will be replaced by periodic tenancies under the Renters’ Rights Act.

With this change, the Government aims to give tenants the freedom to leave substandard properties.

ASTS BECOME PERIODIC TENANCIES OVERNIGHT

On May 1, 2026 all ASTs will instantly become periodic. Any tenancy you sign from now until that date will be affected, as well as your existing tenancies. Tenants will need to provide two months’ notice to end the tenancy.

EFFECTIVE 2-MONTH MINIMUM TENANCY

Tenancies will operate a rolling, month-to month basis, and there will be no official minimum term for new or existing tenancies. However, tenants could sign a tenancy agreement and immediately serve two months’ notice, effectively making this the minimum term.

CONTRACTS NEED TO BE UPDATED The transition from fixed-term agreements to periodic tenancies will require ourselves to update all contracts created on or after May 1, 2026.

The government has promised to create a draft tenancy agreement in January 2026 to allow landlords to start preparing. 

You won't need to issue a new agreement for tenancies created before May 1, but you will need to serve tenants with a government-published information sheet before May 31, 2026.

Penalties are in Place for failing to do this step.

TENANCY AGREEMENTS ARE LESS FLEXIBLE 52% of surveyed tenants indicated they prefer fixed-term, renewable tenancy agreements. 49% of tenants did not feel trapped in their home by a fixed-term tenancy agreement. However, the move to periodic tenancies outlaws any fixed-term agreement, regardless of these preferences.