The Renters’ Rights Act will mark a fundamental shift in how landlords let and manage property in England. When the Act takes effect on 1 May 2026, the familiar assured shorthold tenancy (AST) will disappear, replaced entirely by a new form of open-ended tenancy known as the Assured Periodic Tenancy.
At first glance, this might sound like a technical change. In reality, it transforms how landlords structure agreements, handle notice periods, and manage income predictability.
From Fixed Terms to Flexibility for Tenants
From 1 May 2026, all new and existing tenancies will automatically become periodic, with rent periods tied to how rent is paid. If rent is paid monthly, the tenancy will be monthly; if weekly, it will roll weekly.
There will be no more fixed terms and no minimum length. Tenants can serve notice to quit from day one, with two months’ notice as the default rule.
This means tenants could, in theory, give notice the same day they move in. In practice, landlords may find notice periods lasting just over two months, as the law requires notice to expire at the end of a rent period.
“This is a huge change for landlords used to the security of six or twelve-month ASTs,” says Lisa Bailey, at Personal Economy Lettings.
“It means we’ll all need to adapt, but with the right systems and safeguards, landlords can stay fully compliant and in control of their income.”
No More Fixed-Term Agreements
Under Section 1 of the Act, any clause attempting to create a fixed term will simply be void. Landlords can’t even “purport to let” for a fixed period and doing so risks a civil penalty of up to £7,000.
Even student tenancies outside purpose-built accommodation won’t be exempt. Every tenancy becomes rolling by default.
Rent Periods Limited to One Month
As part of this overhaul, landlords can no longer set rent periods longer than one month for new tenancies. Existing agreements where tenants pay quarterly, termly, or annually in advance can continue, but new tenancies must not exceed a one-month rent cycle.
The End of “Rent in Advance” Practices
Perhaps the most immediate practical change is the ban on rent in advance.
Landlords and agents will no longer be able to “invite, encourage or accept” rent payments before both parties have signed the tenancy agreement. Any advance beyond one calendar month’s rent will be a prohibited payment under the Tenant Fees Act 2019.
Once the agreement is signed, a landlord may only take one month’s rent in advance (or 28 days’ rent if the rent period is shorter). Clauses demanding quarterly or termly rent payments will be unenforceable, though existing agreements that already contain such clauses won’t be affected.
What This Means for Landlords
The shift to periodic-only tenancies means landlords will need to rethink:
- How they plan for turnover and voids, since tenants can leave at shorter notice.
- How rent is collected, especially where longer rent periods were used to reduce risk.
- How tenancy agreements are written, to reflect the new legal structure.
The good news? The fundamentals of good letting, clear communication, sound referencing, and compliant management still apply. And that’s where experienced partners make all the difference.
“Our role is to make sure landlords stay ahead of these changes,” says Lisa Bailey.
“That means updating agreements, adjusting rent schedules, and making compliance effortless, so you can focus on building your property income with confidence.”
In Summary
- All ASTs will convert to Assured Periodic Tenancies on the Commencement Date.
- Fixed terms will be abolished - no exceptions for non-purpose-built student lets.
- Tenants can give two months’ notice from day one.
- Rent periods can’t exceed one month.
- Rent in advance payments are banned beyond one month’s rent once signed.
Ready for the Change?
If you’re unsure how these updates will affect your portfolio, or you’d like a compliant tenancy template built around the new law our team can help.
👉 Book a Clarity Call with Personal Economy Lettings to make sure your agreements, processes, and protection plans are fully ready for the Renters’ Rights Act.
https://personaleconomypartners.com/landing/book-a-clarity-call
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