Date Published 11 July 2025
In a landmark change to the private rental sector, all new tenancies in England will become open-ended periodic agreements with a rent period not exceeding one month. Existing tenancies will also transition to this format. The reform marks the end of fixed-term contracts, with landlords no longer permitted to serve Section 21 or legacy Section 8 notices to evict tenants—effectively overturning decades of rental practice.
After years of campaigning, consultations, and evidence sessions, the UK Government is moving forward with its commitment to make periodic tenancies the standard. Despite concerns raised by the industry, particularly around student lettings, ministers have not backtracked on this core principle. As an established lettings agency, Adams Estates believes that fixed-term tenancies still serve an important role when agreed upon mutually. Such agreements offer tenants security of tenure while providing landlords with the assurance of continuous rent payments over a set period.
This is particularly vital in the student rental market, where predictable cycles are the norm. However, the Government has made a concession by expanding Ground 4A, allowing landlords of one- and two-bedroom student properties to regain possession in preparation for incoming cohorts.
Key Changes Under the New Tenancy Regime
• End of Fixed-Term Contracts: Six- and 12-month assured tenancy agreements will be abolished. All new tenancies will be open-ended.
• Mandatory Periodic Tenancies: From the legislation's commencement, all new and existing assured tenancies must be periodic with monthly or 28-day rent cycles.
• Tenant Flexibility: Tenants can leave at any time with two months' notice.
• Stronger Conditions for Repossession: Landlords must now provide a valid reason with supporting evidence to reclaim possession.
• Section 21 Abolished: No-fault evictions will no longer be permitted.
Legal Framework
Clause 1 of the Bill inserts a new Section 4A into the Housing Act 1988, declaring that any clause attempting to enforce a fixed term or set a different tenancy period from the rent cycle will be legally void. Clause 2 goes further, abolishing assured shorthold tenancies entirely.
Additionally, the Bill amends the Housing Act to clarify that long leases—ranging from seven to 21 years—cannot be classed as assured tenancies. This ensures such leases can retain fixed terms, a necessary condition for their legal and practical function.
Timeline and Next Steps
• 15 July 2025: Third day of the Report Stage in the House of Lords
• 21 July 2025: Third Reading in the House of Lords
• Late July 2025: Potential window for Royal Assent before Parliament's summer recess.
If the Bill is not passed before the summer break, the Renters' Reform legislation is unlikely to become law before Autumn 2025. As the Bill continues its journey through the House of Lords in the coming days, further amendments remain possible. Adams Estates is closely monitoring developments and will keep all clients informed of any significant updates or changes to the legislation.
