Fixed-Term Tenancy

Fixed-Term Tenancy is a rental agreement running for a specific period with defined start and end dates, typically 6 or 12 months for residential ASTs in England. During the fixed term, tenants have security of occupation and landlords cannot usually end the tenancy early except for serious breaches. From 1 May 2026 under the Renters' Rights Act 2025, all new tenancies become periodic by default, making fixed terms optional.

How Fixed-Term Tenancies Work

During the fixed term:

• Tenant has right to stay for the entire period
• Landlord cannot usually end tenancy early (except breach)
• Rent amount is fixed (unless agreement allows increases)
• Either party can only leave early via break clause or mutual agreement

At the end:

• Tenancy can be renewed with a new fixed term
• It may become periodic (rolling)
• It can end with proper notice

Benefits

For tenants:

• Security of knowing they can stay
• Protection from rent increases during term
• Certainty for planning and budgeting

For landlords:

• Guaranteed rental period (assuming tenant pays)
• Reduced turnover and void periods
• Certainty for mortgage/financial planning

Ending a Fixed-Term Early

Tenant options:

• Use break clause (if included)
• Negotiate surrender with landlord
• Find replacement tenant (with landlord agreement)

Landlord options:

• Use break clause (if included)
• Section 8 for breach/rent arrears
• Mutual surrender agreement

Changes Under Renters' Rights Act 2025

From May 2026:

• Fixed terms become optional
• All tenancies periodic by default
• Landlords cannot require fixed terms
• Tenants can still agree to minimum periods
• Section 21 abolition affects end-of-term recovery

For Letting Agents

Managing fixed-term tenancies:

• Track renewal dates carefully
• Begin renewal discussions 2-3 months before end
• Advise on break clause options
• Prepare for shift to periodic tenancies
• Explain changes to landlords and tenants