Fixed Term vs Periodic TenancyFixed Term vs Periodic Tenancy
Understanding the difference between fixed term and periodic tenancies in England. Choose the right structure for your letting situation.
Understanding Tenancy Duration in England
The structure of your tenancy affects your rights, flexibility, and ability to regain possession of your property.
When creating an Assured Shorthold Tenancy (AST) in England, one of the key decisions is whether to use a fixed term or periodic structure. Each has distinct advantages and implications for both landlords and tenants.
A fixed-term tenancy runs for a specific period — typically 6 or 12 months — with a definite end date. A periodic tenancy has no fixed end date and continues on a rolling basis (usually monthly) until either party gives proper notice.
Many landlords use a hybrid approach: starting with a fixed term that automatically becomes periodic when it ends. This provides initial certainty followed by flexibility.
Fixed Term vs Periodic: Key Differences
Compare the two main tenancy structures to decide which suits your situation.
Fixed Term Tenancy
A set period (e.g., 6 or 12 months) with a definite start and end date.
Periodic Tenancy
Rolls on weekly or monthly with no fixed end date until notice is given.
How Fixed Term Tenancies Work
Understanding the rules and limitations of fixed-term ASTs.
During the Fixed Term
Once a fixed-term tenancy begins, neither party can normally end it early. The tenant is committed to paying rent for the entire term, and the landlord cannot require them to leave (except using Section 8 grounds for serious breaches).
You can serve a Section 21 notice during the fixed term, but it cannot take effect until the fixed term ends. The notice must give at least 2 months from the date it is served and cannot expire before the fixed term ends.
When the Fixed Term Ends
If the tenant stays beyond the fixed term end date with your consent (even implied consent), the tenancy automatically becomes a statutory periodic tenancy. This runs on the same terms as the original agreement but on a rolling basis — usually monthly if rent was paid monthly.
You do not need to create a new agreement. The statutory periodic tenancy arises by operation of law under the Housing Act 1988.
Break Clauses
A break clause allows either party to end a fixed-term tenancy early by giving a specified notice period (typically 2 months). This provides flexibility while maintaining some security.
If you want the option to end the tenancy during the fixed term, include a break clause in your agreement. Our Premium Tenancy Agreement includes break clause options.
How Periodic Tenancies Work
Understanding rolling tenancies and notice requirements.
Types of Periodic Tenancy
There are two types of periodic tenancy:
- Contractual periodic: Created by the original tenancy agreement stating the tenancy will be periodic from the start, or will continue as a periodic tenancy after any fixed term.
- Statutory periodic: Arises automatically by law when a fixed-term tenancy ends and the tenant remains in occupation.
Both function similarly — the tenancy rolls on until ended by proper notice.
Notice Requirements
To end a periodic tenancy, landlords must serve a Section 21 notice giving at least 2 months notice. The notice must expire on the last day of a rental period.
For example, if rent is paid monthly on the 1st, a notice served on 15th January would need to expire on 31st March at the earliest (being the last day of a complete rental period after 2 months have passed).
Tenants must give at least one month's notice to end a periodic tenancy, also expiring on the last day of a rental period.
Rent Changes
On a periodic tenancy, you can increase rent using a Section 13 notice. You must give at least one month's notice (or one rental period if longer). The tenant can refer the increase to a tribunal if they disagree.
Create Your Tenancy Agreement
Choose fixed term, periodic, or a hybrid approach. Our wizard guides you through the options.
Which Should You Choose?
Consider your circumstances to decide the best structure.
Choose Fixed Term (6-12 months) If...
- You want guaranteed rental income for a set period
- The tenant is new and unproven
- You want to lock in the current rent for the term
- The property is in high demand with little void risk
Choose Periodic (Rolling) If...
- You may need flexibility to regain possession
- The tenant is established and reliable
- You want to be able to adjust rent periodically
- You may want to sell or move into the property
Choose Fixed Term with Break Clause If...
- You want a balance of security and flexibility
- Your circumstances might change during the term
- The tenant wants the option to leave early too
- You are uncertain about long-term letting plans
Most common approach: Start with a 12-month fixed term that automatically becomes periodic. This gives you initial security while providing flexibility after the first year.
Impact on Eviction Rights
How your tenancy structure affects your ability to regain possession.
Section 21 Notices
You can serve a Section 21 notice on either a fixed-term or periodic tenancy, but the timing rules differ:
- Fixed term: Notice can be served during the fixed term but cannot expire until the fixed term ends. You need to allow at least 2 months from service.
- Periodic: Notice can be served at any time but must expire on the last day of a rental period, at least 2 months from service.
Section 8 Notices
Section 8 notices (grounds-based eviction) can be served during either type of tenancy. The notice periods vary depending on the ground used — from 2 weeks for serious rent arrears to 2 months for some discretionary grounds.
Planning Ahead
If you know you may need to recover possession, consider the timing implications. On a 12-month fixed term, you may need to wait until month 10 to serve a Section 21 notice that takes effect at month 12.
Fixed Term vs Periodic Tenancy FAQ
Create Your Tenancy Agreement
Fixed term, periodic, or with break clause. Choose the structure that works for you.
Section 21 & 8 Included • AI Compliance Check • Designed for Court Acceptance
For general information only. This page provides educational content about UK landlord law and is not legal advice. Laws vary by jurisdiction and change over time. For advice specific to your situation, consult a qualified solicitor.