When talking about periodic tenancy agreements there is one very important question that we need to ask before any other. So let’s find out what periodic tenancy is and how does it work.

Periodic tenancy is also known as rolling tenancy. It is a form of tenancy that has no fixed end date of tenancy. Instead of that, the periodic tenancy is renewed automatically and continues after a period of time specified in the periodic tenancy agreement. Once that that period described in the tenancy agreement is reached, a statutory tenancy comes into an action. If the tenant doesn’t renew their contract after that and they continue paying rent, the continuation of the contract becomes automatic. That is how the tenancy enters a statutory periodic tenancy. The landlord must agree on that as well for that to become possible.

Periodic tenancies usually follow an assured shorthold tenancy, which is the most common type of rental agreement in the UK as of 2024/2025. The lack of end date is the crucial aspect that differentiates the periodic tenancy from the fixed form tenancy.

Types of periodic tenancy

Both tenants and landlords should be aware of the different kinds of periodic tenancies that are described in the current UK legislation. Contractual periodic tenancies are another type, where the terms are specifically set out in the original contract. A monthly periodic tenancy is a type of periodic tenancy where the rent is paid monthly, and the tenancy continues from one month to the next without a fixed term. For contractual periodic tenancies, notice periods align with those of statutory tenancies unless specific rent payment frequencies dictate longer notice periods. Being acquainted with those ensures both parties in the tenant’s agreement are not only protecting their rights but know their obligations as well.

Contractual Periodic Tenancy

A contractual periodic tenancy agreement is described in the rental contract upon signing. This type of agreement highlights how it differs from a statutory periodic tenancy by being established from the outset, allowing for rent payments on a regular basis, and potentially including clauses for rent reviews. For contractual periodic tenancies, the notice periods required for eviction align with those of statutory tenancies unless specific rent payment frequencies dictate longer notice periods. It outlines the implications, including advantages and disadvantages for both landlords and tenants.

A contractual tenancy is established when both landlord and tenant agree to transition from a fixed term to a periodic tenancy.

That means that the tenant and the landlord have agreed beforehand they are entering a periodic tenancy relation, instead of it being automatically imposed upon reaching a fixed date in the contract. The contractual periodic tenancy arrangement can be made also shortly before the expiration of the fixed-date contract.

Statutory Periodic Tenancy

Once the initial fixed term in the rental contract expires, statutory periodic tenancies become active. These tenancies allow tenants to continue renting the property without being tied down by a lengthy fixed-term contract. Landlords can issue Section 21 notices to terminate statutory periodic tenancies with a specified notice period. Recent legislative changes, such as the Renters Reform Bill, may impact the nature of these tenancies. Therefore, if the tenant wishes to continue renting the property with more flexibility, they can request a rolling periodic tenancy with a term of a month, or even a week. The landlord is obliged to agree to such an arrangement in most cases. This is actually something few people come to realize.

What are the rules for a periodic tenancy?

When you are a tenant involved in a periodic tenancy agreement you need to follow all the rules and obligations of any other tenant in the UK. The tenancy period defines the notice requirements and timelines for both landlords and tenants. Also, if you are to terminate the periodic tenancy agreement, you are obliged to inform your landlord with an advance notice equal to the period of your rolling periodic tenancy renewal, otherwise they reserve the right to keep your rental deposit. That means that if your tenancy contract is renewed at the end of each month, you need to give at least one month’s notice before you can leave.

Does the landlord have the right to evict on a periodic tenancy?

The UK government has seen that there are eviction rules to protect tenants under periodic tenancy agreements just like there such for the fixed-term agreements. The Housing Act outlines the legal processes for evicting tenants under different tenancy types, including periodic tenancies. The landlord can ask their tenant to leave in case they are breaking the rules of your tenancy contract. That includes the cases when they cause excessive damage to the property. Another case would be if the neighbours complain that someone is a nuisance to them. On the other hand, you are protected by the same tenant’s rights as all tenants in the country. That doesn’t mean your landlord doesn’t have the right to terminate your periodic tenancy agreement, so beware of that. However, the regulations dictate that they need to give you notice that is equal to the period of renewal of the contract. It can be a week, a month, or a year depending on the arrangement you have.

Periodic tenancy – disatvantages

At first glance, periodic tenancies are beneficial to tenants. Fixed term tenancies provide more stability for landlords compared to periodic tenancies. Landlords tend to enjoy less favorable conditions under a periodic tenancy agreement. Therefore, they would be more attractive to those looking to rent for a shorter period. People who don’t want to get tied up by a fixed-term tenancy go for rolling ones. That doesn’t mean some landlord’s don’t find a fixed-term tenancy that turns into a periodic one to be an excellent idea. The flexibility the arrangement provides for both side is evident. It is also a quite crucial benefit in the hectic world of the 21st century.

What is the main difference between periodic tenancy and fixed-term tenancy?

There are three main differences between periodic tenancy and fixed term agreement that both renters and property owners need to be aware of.

• The first and most distinct difference is the length of the actual rental contract. The fixed term agreement comes with an agreement for how long the two parties enter into the contractual obligations between a tenant and a landlord. These terms are usually relatively lengthy ones. A typical fixed-term tenancy contract expires in two years. There are however long-term fixed-term tenancy contracts that can go on for seven or even more years.
• Another major difference between a periodic tenancy agreement and a fixed-term one is that the renewal of the contract applies automatically for the periodic tenancy one. On the other hand, the fixed-term tenancy contract should be agreed upon and signed by both the tenant and the landlord for it to be renewed.
• Statutory requirements pose a need for a notice to be provided by either of the two parties included in the contractual obligations before a periodic term tenancy agreement could be ended. The same does not apply to fixed-term tenancy agreements, as the expiration date for the term is written in the contract.

An assured shorthold tenancy (AST) is the most common type of tenancy agreement provided by landlords or letting agents.