Rolling Contract Tenancy: New Default Under the Renters’ Rights Act
From May 2026, every fixed-term tenancy in England will be a rolling tenancy contract by law.
Over 11 million private renters are going to move under an entirely different system under the Renters’ Rights Act 2025 (GOV.UK). It has made the periodic tenancies a new default for every private rental. A rolling tenancy or a periodic tenancy doesn’t have a fixed end date, which allows greater flexibility for both landlords and tenants in the UK.
If your fixed-term tenancy is coming to an end, our Professional Estate Agents will guide you about rolling tenancies and help you transition the tenancy smoothly.
What is a Rolling Contract Tenancy in the UK?
A periodic tenancy or a rolling contract tenancy has no fixed end date. Unlike fixed-term tenancies, which typically run for a defined period such as 6 months or a year, periodic tenancies work in a rolling manner on a monthly or weekly basis. This rental contract is also known as a rollover tenancy agreement or periodic tenancy agreement.
| Under Section 5 of the Housing Act 1988, if a fixed-term AST (Assured Shorthold Tenancy) expires, and neither party signs any new agreement, a rolling or periodic tenancy arises automatically by default, not by choice. It is called Assured Periodic Tenancy (APT). |
Rolling tenancy agreements work best in favour of the tenants who want a short-term lease, such as for temporary corporate relocation.
Rolling Tenancy Contracts & the Renters’ Rights Act 2026
The Renters’ Rights bill has set the most significant reforms in the Private Rented Sector in 30 years. The legislation is now the Renters’ Rights Act and will come into force on 1 May 2026. From that date, the new tenancy laws will be:
- All new and existing fixed-term tenancies will transition to Assured Periodic Tenancies (APT). And a fixed-term tenancy will be legally void.
- Tenants can give at least two months’ notice to terminate the tenancy at any time.
- Landlords are no longer able to use a no-fault Section 21 eviction notice to end tenancy without any prior notice. They must use legitimate possession grounds under Section 8.
- Rent can only be increased once a year using the Section 13 notice process, giving two months’ notice.
- In a joint tenancy, one tenant can give notice to end the rolling contract tenancy for everyone.
- Landlords or letting agents are required to provide the Renters’ Rights Act 2025 information sheet to the tenants between 1 May and 31 May 2026.
| ⚠️Important Landlords must provide a hard copy of the information sheet to the tenants; otherwise, they could be fined up to £7,000 or a £40,000 penalty for repeat offences. |
Disclaimer: Renters Rights Act applies to England only. Scotland and Wales have separate legislation.
Types of Rolling (Periodic) Tenancies in England
There are two types of rolling contract tenancy: statutory and contractual. These two types have different rules regarding notice periods, rent increases, and termination of tenancy.
Statutory Periodic Tenancy
A statutory periodic tenancy is the most common type of rolling tenancy contract in England. It automatically starts by operation of law (Housing Act 1988). As has been noted, when the Assured Shorthold Tenancy (AST) expires, and tenants remain in the property, the statutory periodic tenancy takes effect. No Action is required from either side for this transition.
How does it come to effect:
It begins when the fixed-term tenancy ends, either on a weekly, monthly, or quarterly basis, which reflects the frequency at which the rent is paid under the AST. For example, if a tenant paid rent monthly, the statutory contract runs from month to month, and if rent was paid weekly, it rolls weekly.
What Terms Will Apply:
- Statutory periodic tenancy isn’t the continuation of the original tenancy. Rather, it is technically a new tenancy. Most of the original terms continue in practice, and the statutory periodic tenancy is governed by the Housing Act 1988 rather than the original contract.
- Before May 2026, the landlords must give a 2-month end-of-tenancy notice under Section 21. From May 1, 2026, the Section will be abolished, and the landlord will use Section 8 possession grounds.
- Tenants must give two months’ notice to end a monthly statutory assured periodic tenancy.
| Before 1 May 2026, Section 21 existed; Section 8 is an alternative. From 1 May 2026, Section 8 is the only route. Section 21 is gone entirely. |
For example, a tenant signs a 12-month fixed-term tenancy beginning March 2024. The tenancy expires on 28 February 2025. No party signs a new agreement, and tenants continue to pay rent on the 1st of each month. Hence, from March 2025, a statutory periodic tenancy starts automatically.
Contractual Periodic Tenancy
The contractual rolling tenancy arises by agreement between the landlord and tenant.
It can come into existence in two ways:
- From the outset, the tenancy agreement has no fixed end date from the very beginning. The landlord and tenant agree at the start that tenancy will run on a rolling basis indefinitely.
- Via a transition clause: The original fixed-term tenancy agreement contains a specific clause stating that, at the end of the fixed term, the tenancy will continue as a periodic tenancy. In this case, a rolling tenancy agreement continues as part of the original contract, not a new tenancy created by law.
Terms Applied
A contractual rolling contract tenancy is a continuation of the original agreement. The terms negotiated at the outset remain legally binding, including any notice period.
From May 2026, the minimum is a 2-month notice for tenants under all rolling agreements. The tenants cannot rely on the statute to give just one month’s notice. Landlords must give at least two months’ notice through Section 21 before May 2026 and before this date through Section 21.
Comparison Between Statutory and Contractual Periodic Tenancies
The table below states the key practical differences between the two types side by side:
| Feature | Statutory Periodic Tenancy | Contractual Periodic Tenancy |
| Created by | Law (Section 5 Housing Act 1988) | Contract between the landlord and the tenant |
| When it arises | Automatically, when the fixed term ends | From the start, or via clause in original AST |
| Governing terms | Statute (Housing Act 1988) | Original tenancy agreement |
| Tenant notice period | 2 months (From May 2026) | 2 months (from May 2026) or as stated in the contract. |
| Landlord notice period | Via section 8 grounds only (Section 21 is abolished from May 2026) | Minimum 2 months. (Section 8 grounds only) |
| Rent increase procedure | Section 13 notice required: 2 months’ notice, once per year. | Section 13, or as per the contract clause |
| Can original contract terms override statute? | No statute takes precedence | Yes, contract terms apply above statutory minimums |
| Most common scenario | Fixed-term expires, no new agreement signed | Rolling tenancy agreed from the outset or via a transition clause |
Deposit Rules for Rolling Tenancies
Does the protection need to be renewed when the tenancy rolls over? The question arises whenever a rolling tenancy is governed either statutorily or contractually. The answer for both types is here:
For a Statutory Periodic Tenancy
The Superstrike Ltd v Rodrigues [2013] and Charalambous v Ng [2014] cases created confusion in the housing sector about the deposit protection when a statutory tenancy starts.
The Deragulation Act 2015 resolved the issue and settled that the original fixed term does not need to be re-protected. The deposit protected during the fixed term will be automatically carried over to the statutory periodic tenancy. According to this legislation, the deposit needs no re-protection at the fixed-term end.
But keep in mind that the deposit scheme should still be active and valid under which the deposit was first protected.
For a Contractual Periodic Tenancy
As we know, a contractual tenancy is a continuation of the original tenancy, and the deposit in place will be carried forward without any interruption. No new deposit is required until the terms under which the deposit was protected have not changed.
The prescribed information must be provided within 30-days of receipt, and it will remain valid throughout the tenancy.
How Landlords Can End Rolling Contract Tenancy From May 2026?
As outlined earlier, landlords can evict tenants only using Section 8 Grounds. Here are the key grounds landlords need to know:
| Ground | Reason | Notice Period | Mandatory/Discretionary |
| Ground 1 | Landlord/family moving in | 4 months | Mandatory |
| Ground 1A | The landlord intends to sell | 4 months | Mandatory |
| Ground 8 | 3+ months rent arrears | 4 months | Mandatory |
| Ground 8A | Repeated rent arrears | 4 months | Mandatory |
| Ground 14 | Anti-social behaviour | Immediate | Mandatory |
| Ground 12 | Breach of tenancy terms | 2 weeks | Discretionary |
| Ground 13 | Property deterioration | 2 weeks | Discretionary |
It is not the complete list of possession grounds. There are 37 Section 8 grounds in total under the Renters’ Rights Act 2025. The landlord must seek legal advice before serving a Section 8 notice.
Pros and Cons of Rolling Contract Tenancies for UK Landlords
Although periodic tenancy agreements provide flexibility to both landlords and tenants, it comes with some pros and cons for landlords, especially.
| Pros | Cons |
| Landlords have greater flexibility to gain possession of the property after four-months notice for sale and personal use instead of waiting to end the fixed-term. | Short notice from tenants can reduce the security of income, resulting in high tenant turnover. |
| No paperwork and contract renewal required because tenancy simply continues. | Less time for securing new tenants, which causes gaps in rental income. |
| Rent increase through Section 13 notice once a year helps in a smooth increase without negotiating whole contract. | Uncertainty in occupancy can make long-term planning more difficult. |
Landlords are advised to focus on managing property efficiently to attract good and long-term tenants because the standard for rent is shifting.
What to Do From May 2026: Landlords’ Action Checklist
The Renters’Rights Act is going to be implemented in the private renting sector in England. Landlords must be vigilant and compliant with the new regulations for rolling tenancy contracts and ongoing periodic tenancies. Here is the detailed checklist that the landlord can follow for ongoing and upcoming assured periodic tenancies (APT).
Download the rolling tenancy 2026 checklist from here!
Conclusion
The Renters’ Rights Act will convert all the fixed-term tenancies in England into rolling tenancy contracts. These agreements provide flexibility for tenants and clear legal procedures for landlords to increase rents and possession. Tenants gain the ability to give 2 months’ notice, and landlords need to comply with Section 8 grounds for eviction. However, rolling contract tenancies will significantly simplify renting for tenants and reduce paperwork for landlords. In East London, if you want steady rental income from your periodic tenancy agreement, explore our landlord’s Guaranteed Rent Solutions for landlords.
