Periodic Tenancy in London

What is a Periodic Tenancy?

A periodic tenancy is a rental agreement that continues automatically once a fixed term has expired, or one that was set up to be periodic from the beginning. Instead of ending on a specific date, it renews itself in line with the rent payment cycle — monthly, weekly, or quarterly.

There are two main types:

• Statutory periodic tenancy – created by law when a fixed agreement runs out and no new contract is signed.
  
  
• Contractual periodic tenancy – written directly into the tenancy agreement from the start, with clear terms on notice and conditions.

Periodic vs Fixed-Term Tenancies

The difference between a fixed-term and a periodic tenancy lies in commitment and flexibility.

With a fixed-term tenancy, both sides are locked in for the agreed duration, often 6 or 12 months. This gives tenants stability and landlords a guaranteed income, but it limits freedom to move or make changes until the contract expires.

A periodic tenancy, on the other hand, continues indefinitely until one party serves proper notice. For tenants, this means freedom to leave without being tied down for another year. For landlords, it allows quicker access to their property if they plan to sell or move back in. The trade-off, however, is less predictability: tenants might need to relocate suddenly, and landlords cannot rely on steady long-term occupancy.

Advantages for Tenants

• Flexibility: Ideal for people who may need to relocate quickly, such as students or professionals.
  
  
• Less pressure to commit: You can remain in the property month to month without signing a long contract.
  
  
• Legal protection: Your basic rights as a tenant remain in place, including notice requirements and fair treatment.
  
  
• Room for negotiation: Some landlords may offer better terms to keep a tenant in place rather than risk an empty property.

Disadvantages for Tenants

• Reduced security: The landlord can serve notice with relatively short warning.
  
  
• Potential rent changes: It’s easier for landlords to review and increase rent in periodic agreements.
  
  
• Uncertainty: Planning for the long term, such as schooling or commuting, can be harder without a fixed end date.
  
  

Advantages for Landlords

• Control of property: Landlords can regain possession more easily by following correct notice procedures.
  
  
• Less paperwork: No need to issue a brand-new contract every time a fixed term ends.
  
  
• Flexible income: Allows adjustment of terms or rent more frequently, provided it’s done legally.
  
  

Disadvantages for Landlords

• Higher tenant turnover: Occupants can leave with a short notice period, which may cause rental gaps.
  
  
• Less predictable finances: Without a fixed contract, budgeting for the year becomes more difficult.
  
  
• Increased responsibility: Landlords must be careful to follow the right legal processes when ending a tenancy or reviewing rent.
  
  

Common Misunderstandings

• A periodic tenancy is not a “temporary” or “less serious” agreement — it carries the same legal weight as a fixed contract.
  
  
• Landlords cannot simply evict tenants at will; they must still serve a valid notice.
  
  
• Rent does not automatically change when the tenancy becomes periodic; it stays the same until formally reviewed.
  
  

Practical Tips

For tenants:

• Confirm whether your tenancy is statutory or contractual.
  
  
• Always check your notice period before making plans.
  
  
• Keep communication open with your landlord if you intend to stay longer than expected.
  
  

For landlords:

• Make sure all notice periods are clear and documented.
  
  
• Plan rent reviews carefully and avoid sudden increases.
  
  
• Consider offering a renewal to reliable tenants if you want stability.
  
  

A Real-World Example

James, a postgraduate student in South London, finished his 12-month lease just as his course was ending. Instead of rushing into another fixed contract, his tenancy automatically rolled into a periodic arrangement. This gave him the freedom to stay while deciding on his next move. Three months later, he found a job abroad and was able to leave legally with a month’s notice, without breaking a contract.

Looking Ahead: Upcoming Law Changes

Big reforms are on the horizon. From 2025–2026, the government’s Renters’ Rights Bill is expected to abolish fixed-term assured shorthold tenancies entirely. Instead, every new rental agreement in England will start as a rolling periodic tenancy by default.

This change will reshape the rental market. Tenants will gain more flexibility and security, no longer tied to rigid year-long contracts. Landlords, however, will need to act with greater caution: notice periods may become stricter, eviction processes longer, and rent reviews more closely regulated.

In short, the way people rent in London is about to change — and both sides must prepare for a system where periodic tenancy becomes the norm rather than the exception.

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Conclusion

Periodic tenancies in London provide freedom for tenants and flexibility for landlords, but they also require a solid understanding of rights and responsibilities. For renters, they offer a way to avoid being locked in when life changes suddenly. For landlords, they provide options but less certainty.

So the key question becomes: do you value long-term stability, or does flexibility matter more to you right now?

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