Yesterday, I started my short series of posts on the changes that will likely come about with the introduction of the Renters’ Rights Act 2025.
In my last post, I discussed the loss of Section 21. Today I want to talk about the loss of fixed terms (which I also discussed here).
The loss of fixed terms
This is an interesting change. I think it is going to be the one that causes the most confusion, as for most people a tenancy is for a fixed period of time.
Many have no idea what a periodic tenancy is. Indeed, for many years, what is a periodic tenancy was the top search term on this blog.
Tenants loss of security
In some respects, the loss of fixed terms is anti-tenant, as it means that tenants will no longer be able to obtain security by negotiating a long fixed term with their landlord.
For example, many tenants will do this to ensure that they will be able to stay in their property during their children’s schooling. Those tenants will probably be horrified to learn that their long fixed term has ended!
Which it will, along with all other fixed terms, which will end automatically on 1 May 2026.
Tenants’ new rights over how long they stay
On the other hand, fixed terms often meant that tenants were forced to remain in and pay rent for properties they no longer wished to live in.
For example, tenants who signed up for a year’s fixed term and then found, once they had been given the keys and moved in, that the property was dripping with damp and mould. Damp and mould, which had been carefully covered up when they visited the property before signing up.
However, before 1 May 2026, they couldn’t end the tenancy without the landlord’s agreement. If they just moved out anyway, the landlord could sue them for the rent on a month-by-month basis. Even though they would have a defence, this is not something they wanted to happen!
Other tenants found they were unable to get out of their fixed-term tenancy if they needed to move elsewhere for work. Which may have cost them that job.
I know that many landlords were understanding and helpful in these circumstances, but by no means all.
Many, probably the majority of landlords, are decent people trying to provide a good service to their tenants (I know, I have met many of them). However, there is no doubt that there are a significant number of landlords who are seriously unpleasant people.
Problems for student landlords
The landlords who will be most negatively affected by this change will be student landlords (which I discussed here). As their tenants will be able to serve a two-month Notice to Quit from the day their tenancy starts. The landlord will then be left trying to find a replaement part way thorugh the academic year, which could be difficult.
So, for example, if Harold decides that he no longer wants to study Chemistry and instead wants to do voluntary work overseas, he will be able to give notice and leave.
Incidentally, if he is a joint tenant with other students, his notice to quit could put their tenancy at risk. As the landlord may decide he has had enough of unreliable students, ask them all to leave, so he can re-let his property to a family!
As a Notice to Quit ends the tenancy, he will be legally entitled to do this. The procedure for recovering possession after a tenant’s Notice to Quit if the tenants fail to vacate is fairly straightforward. The remaining tenants may also be liable to pay double rent under the Distress for Rent Act.
Problems for all landlords
The other problem for landlords is that from 1 May, creating a fixed term will be a breach of the regulations, punishable by a fine of up to £7,000 (with a government recommended starting point of £4,000).
As I will be discussing later in this series, Local Authorities will be under pressure to enforce the rules. And it will be easy to prove breach of the ‘no fixed terms’ rules. A tenancy agreement containing a fixed term will be their evidence!
So landlords need to be very careful about the tenancy agreements they issue to tenants from now on. Not only because of the prohibition against fixed terms, but also because of the required information their tenancy agreements will need to contain.
Incidentally, my Landlord Law tenancy agreements are as compliant as I can make them.
I daresay that there will be many landlords who are unaware of the new legislation and their obligations under it. Indeed, a Pegasus Insight report shows that some 25% of the Private Rented Sector are ignorant of the new Act. As ignorance of the law is never a defence, these landlords may find this rather expensive.
Tomorrow I want to talk about Local Authority enforcement.
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