What is a Periodic Tenancy Agreement? Guide for Peterborough Landlords
By Wayne Beecham | Created on 21st April 2025
Fixed term and periodic tenancies are the most common types of tenancies. Many landlords like issuing periodic tenancy agreements rather than a fixed term tenancy or, at least, they are happy for the tenancy to continue on a periodic basis after the fixed term ends.
If you are a landlord in Wellingborough, Rushden or Cambridgeshire wondering which type of tenancy will work best for you, this guide should help you to decide. Read on to find out more about the different types of tenancy agreements and how they differ.
What Is A Periodic Tenancy Agreement?
A periodic tenancy agreement runs from month to month or even week to week. It is ‘periodic’ depending on when the rent is paid. If paid monthly, for instance, then it’s a monthly periodic agreement. The same principles apply to tenancies paid weekly.
In other words, it is a rolling contract that either party can terminate quickly. With a fixed periodic tenancy agreement, it would typically be necessary to wait until the end of the agreement period to make any tenancy changes.
Types Of Periodic Tenancy Agreements
You can issue tenants a statutory period tenancy agreement or a contractual periodic tenancy agreement.
Statutory Periodic Tenancy
Tenants on an assured shorthold tenancy that ends and want to stay on in the property are automatically switched to a periodic tenancy (if they don’t sign up for another fixed tenancy). The tenancy will continue ‘in statute’ under the rules in Section 5 of the Housing Act 1988. Technically, it is a new tenancy (i.e., no longer fixed), but there’s no need to sign a periodic tenancy agreement.
It’s usually rolling, but it can be for a set period. For example, if the tenant pays six months in advance, it’s a periodic tenancy for six months.
Contractual Periodic Tenancy
A contractual periodic tenancy is when both the landlord and tenant agree that at the end of the fixed tenancy, it will become a periodic tenancy. In other words, it’s not naturally ‘rolling on’ but has been pre-agreed. A big difference between a statutory and contractual tenancy is that the latter is not a new tenancy, whereas the former is.
It should be mentioned in the original fixed tenancy agreement that it will switch to a contractual periodic tenancy later. The tenant should sign another agreement (this time saying it is periodic) before their fixed tenancy ends.
A tenant doesn’t need to be on a fixed tenancy agreement before switching to a contractual periodic tenant. They can begin on the contractual agreement from the start. This does not, however, interfere with their six-month statutory rights for an assured shorthold tenancy – unless both parties agree this should be the case.
It’s possible to set a date for the contractual tenancy, for instance, six months or one year, to give both parties a sense of security.
Assured Periodic Tenancy
There are not many assured periodic tenancies running anymore but some still exist for long-standing tenants. Tenants who moved into rented properties between January 1989 and 27 February 1997 could have assured periodic tenancies. This type of tenancy has more protection for tenants regarding evictions, as the landlord must provide evidence to prove that there is a legal reason for the eviction.
What About The Deposit?
If the tenant’s deposit is held in one of the approved schemes, then it is protected until the tenancy ends – regardless of whether it is fixed or periodic. That’s because when a tenancy becomes periodic it continues. However, it is always worth checking since rules and tenancy deposit providers can change over time.
In England and Wales, the three government-approved tenancy deposit schemes are:
All three schemes provide a free dispute resolution service in the event that landlords and tenants have a dispute regarding withholding some money from the deposit for damage, cleaning or other deductible costs.
And The ‘How To Rent’ Guide?
If your tenants have a statutory periodic tenancy and the How to Rent guide has changed since they first took on a fixed tenancy with you, then, as the landlord, you must to supply them with the updated version. In the case of a rolling contractual periodic tenancy, this doesn’t apply.
Ending A Periodic Tenancy
Regardless of whether it is a statutory or contractual periodic tenancy, it should be ended by the proper legal means. Landlords must follow the rules of the Housing Act 1988 or risk invalidating the process.
A tenancy can end by mutual agreement or eviction (if there are grounds to do so). The tenant can give periodic tenancy notice (usually one month or 28 days if the rent is weekly). It should be in writing. If the landlord gives notice on a periodic tenancy, they should give the tenant two months’ written notice in advance.
Benefits Of A Periodic Tenancy
It’s flexible. If you want to ask your tenants to leave, you can serve a Section 21 notice right away (rather than waiting for the fixed-term to end). The rules can be found in Section 21 of the Housing Act 1988, including guidance on contractual and statutory periodic tenancies. It’s also faster to evict a bad tenant than having to serve a Section 8 Eviction notice for a fixed tenancy.
Less paperwork. There is no need to draw up another agreement since the tenancy agreement still stands (in the case of a contractual periodic tenancy), and in the statutory periodic tenancy, it becomes automatic.
Increase the rent. You can usually increase the rent once a year by giving your tenants the correct notice period once the rent has been paid. You must give the tenants a minimum of one month’s notice in writing.
What Are The Disadvantages Of A Periodic Tenancy?
Short-term tenants. Just as you, as the landlord, can quickly get rid of bad tenants, your good tenants can move out just as quickly. This can mean a frantic scramble to find new tenants quickly.
More fees. A quicker turnover of tenants means having to spend more money on flat cleaning, marketing and tenant referencing checks. It also means being on the ball time-wise as a month isn’t a long time to organise all this.
More void periods. It’s not always the case that your flat will be empty more often than with a fixed tenancy, but certainly, the risk is higher since you may have a higher turnover of tenants.
Updating Agreements. If a periodic tenancy is continual for several years, then the tenancy agreement may not always be in keeping with the updated legislation.
Council tax. Under a statutory periodic tenancy, if you give a tenant a Notice to Quit and they move out right away, then you could be left paying the council tax. This doesn’t apply if you have a contractual periodic tenancy agreement with them.
Are Periodic Tenancies A Good Idea?
Many landlords believe so. A periodic tenancy running on from a fixed tenancy is the most popular form of rental agreement these days.
Both parties – landlord and tenants – are often keen on flexibility. Landlords can move tenants out quickly if they need their property for something else, but it works both ways. That means tenants who come and go can leave you with a lot of expense and admin work creating new leases, carrying out inventory checks, etc.
Other Types Of Tenancy Agreements
Assured Shorthold Tenancy (AST) is the most common tenancy that landlords or letting agents provide. It gives the tenant the legal right to stay in a property for a certain initial period, usually 12 months. However, there are several other options that exists, and may be suited to certain tenants and situations:
Non-Assured Shorthold Tenancy is used when an AST can’t be due to unavoidable circumstances, including the tenant having another main home, where the total rent is £250 or less per year, or if the landlord lives in the property with their tenants but doesn’t share any of the amenities. They are also sometimes referred to as a fixed-term tenancy.
Assured Tenancy is commonly used for housing association tenants but can also be used for private tenants. It is an agreement that allows the tenant to stay in the property for the rest of their life, and it can only be ended if the tenant decides to vacate the property or if they are evicted for a particular reason.
Excluded Tenancy is used when a landlord has a subtenant who lives in the same property, and the communal living space is shared. The tenant has exclusive possession of the area (usually bedroom) for which they pay their rent.
Regulated Tenancy, also known as a protected tenancy or rent act tenancy, is a long-term agreement between a private landlord and a tenant. Before 15th January 1989, in England and Wales, they were the default type of tenancy. Regulated tenants have stronger rights, so checking what you can and can’t do is important.
Company Let is when a limited company rents out residential accommodation for its staff or directors to live in as tenants.
Short-Term Fixed Tenancy has a start and expiry date that is set, usually for a period of 90 days or less.
Proposed Changes in the Renters’ Rights Bill
The upcoming Renter’s Rights Bill is set to introduce major reforms to the private rented sector. The bill is expected to be passed in 2025, and it replaces the previous government’s Renter’s Reform Bill.
One of the significant changes included in the bill is bringing an end to ASTs and replacing them with periodic tenancies. Instead of agreeing to a fixed rental term, tenants will be put on a rolling contract, which they can end with two months’ notice. This new tenancy rule will apply to nearly all tenancies, providing tenants with more freedom to move out, should they want to.
Once the bill becomes law, all new tenancies will be periodic, rolling tenancies, and all existing tenancies will convert to periodic. The bill will also make changes to rules about rent increases, keeping pets and several other key reforms.
Landlords will have to follow Section 8 rules to end the tenancy, as the plans are to abolish Section 21 notices completely. Read about the changes in our Renter’s Rights Bill article.
Frequently Asked Questions
Can a landlord refuse a periodic tenancy?
A landlord cannot refuse a periodic tenancy once the fixed term agreement comes to an end but they can serve an eviction notice to end the tenancy and regain possession.
Does a fixed term tenancy automatically become a periodic tenancy?
Yes, fixed term tenancies automatically become periodic and there is no requirement to renew the contract for this to happen.
How long can a periodic tenancy last?
The length of a periodic tenancy continues rolling indefinitely with no end date. The only time it will end is if either the landlord or tenant provides notice to terminate the contract.
What is the notice period for a periodic tenancy?
The notice periods a landlord must give depends on the terms for eviction, but will be between 2 weeks and 2 months. The Renter’s Right Bill will extend the notice for unpaid rent from 2 weeks to 4 weeks’ notice. Tenants on monthly rent payments have to provide 1 months’ notice.
Which is better fixed or periodic tenancy?
Many landlords and tenants prefer the security of a fixed tenancy but it depends on the circumstances. Periodic tenancies provide more flexibility to serve notice to end the tenancy.
If you are renting out your property in Corby, Boston or other areas around Peterborough, we can give you advice on all aspects of property management including choosing the correct type of tenancy agreement for your property. Get in touch today.
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Wayne Beecham
Wayne is East Midland’s answer to property management. His hard work and high standards of service have gained him a fierce reputation within the regional lettings market. He knows what it takes to own and manage a profitable portfolio himself, because he is not only a successful investor and landlord, but co-founder and “hands on” managing director of Progressive Lets.
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