Renting out a home in 2026 looks very different from a year ago. The rules that shaped tenancies for decades have been rewritten, and plenty of landlords are unsure where they now stand. With around 2.3 million private landlords in England and roughly 4.7 million households renting from them, the stakes are high. One phrase that still causes confusion is the statutory periodic tenancy, a term that governed lettings for years and now sits at the centre of a major legal shift. This guide explains what it means, how recent reforms have changed the picture, and what every landlord should do next to stay compliant and protect their rental income.
Key takeaways
- Before the reforms, a rolling tenancy formed by default once a fixed contract expired and the renter remained.
- Since the start of May 2026, nearly every assured letting has been periodic straight away under new legislation.
- No-fault Section 21 possession has ended, so owners must now rely on Section 8 grounds to take a property back.
- A landlord may lift the rent just once each year, and only after serving the proper statutory notice.
- A renter can walk away from a rolling let on two months’ notice that lines up with the payment cycle.
What is a statutory periodic tenancy?
For decades, most private lets were assured shorthold tenancies, usually granted for a fixed term of six or twelve months. The question was always what happened once that term ran out. Many tenants wanted to stay, and many landlords were happy to keep a reliable occupant, so the fixed end date often passed without anyone signing anything new.
If a tenant stayed on without a fresh contract, the agreement did not simply stop. It became a statutory periodic tenancy, rolling forward on identical terms, with periods that matched the rent cycle and were usually month to month. Nothing about the rent, the deposit or the property changed on that day.
This differed from a contractual periodic tenancy, where the written agreement itself built in the rolling arrangement from the very beginning. Either way, the renter kept the same protections, the deposit scheme still applied, and the owner could still seek possession through the correct legal channel.
Knowing the difference mattered, because the category affected how notice was served and how either party could bring things to a close. For years this was routine background knowledge for anyone letting a property, and letting agents built their processes around it.
What changed on 1 May 2026
The biggest overhaul of renting in a generation arrived with the Renters’ Rights Act 2025, which received Royal Assent in October 2025. Its central tenancy reforms took effect on 1 May 2026 and apply to both new and existing lets across the private rented sector in England.
From that day, assured shorthold agreements and fixed terms were abolished. Almost every assured tenancy is now periodic from the outset, rolling on with no set finish date. Older agreements converted on their own, so landlords did not need to reissue their paperwork, although new lets require a written statement of terms before they begin.
The end of Section 21 no-fault eviction arrived at the same moment. To regain a home, an owner must instead point to a Section 8 ground, such as serious arrears or a genuine plan to sell or move in. Each ground carries its own evidence requirements and notice period, and some cannot be used during the first twelve months. Owners with tenants already in place before the switch also had to send a short government information sheet setting out the new rights, a step that came with its own firm deadline.
| Feature | Before 1 May 2026 | From 1 May 2026 |
|---|---|---|
| Main tenancy type | Assured shorthold tenancy | Assured periodic tenancy |
| Fixed term | Common, 6 to 12 months | Abolished, all rolling |
| Landlord ends it via | Section 21 or Section 8 | Section 8 grounds only |
| Rent increases | Renewal or agreement | Once a year, Section 13 notice |
| Rent in advance | Sometimes several months | One month maximum on new lets |
| Key date: The main tenancy reforms went live on 1 May 2026 and applied to new and existing lets alike, so every private landlord in England was affected on the same day. |
Video suggestion: an overview of the assured periodic tenancy under the new rules.
The rental market backdrop for landlords
These changes land in a market that is already stretched. According to the latest ONS figures, the average monthly private rent in England reached £1,442 in the year to May 2026, while the typical London tenant paid £2,294, more than any other region in the country.
Figure 1: Average monthly private rent by area, year to May 2026 (ONS).
Rent growth has cooled from the double digit jumps of a few years back, yet affordability stays tight, particularly in the capital where the cost of living in the capital weighs heavily on household budgets. For owners, that reality means pricing accurately and evidencing every proposed increase with care.
Regional gaps are stark. Rents were rising fastest in the North East, the cheapest English region at £776 a month, while the priciest borough, Kensington and Chelsea, averaged well over £3,000. A landlord who ignores local comparable risks either empty months or a challenge at tribunal. Even so, appetite for well kept homes stays strong, and renters still compete hard for the best available stock.
The typical London tenant paid £2,294 a month in the year to May 2026, more than in any other region of England.
The sector is also broad and lopsided. Most owners operate at small scale, with roughly 45 percent holding just a single property, while a smaller group with five or more homes accounts for almost half of all lettings. The chart below shows how concentrated the market really is.
Figure 2: Landlords by portfolio size against their share of tenancies (EPLS 2024).
Key rules landlords must follow now
Compliance is where many owners will feel the change most keenly. A tenant can serve notice to leave a rolling agreement and move out within about two months, provided the date aligns with a rent period, which makes void planning more important than it once was.
Rent reviews are tightly controlled. A landlord may raise the figure to the going market rate, but only annually, through a Section 13 notice that gives the household at least two clear months to prepare, and the tenant can dispute an unfair rise at tribunal. The bar for eviction based on unpaid rent has moved from two months of arrears to three.
Two further limits catch out newcomers. For a fresh let, no more than one month of rent may be requested in advance, and rental bidding wars are banned, so the advertised price is the price a tenant should expect to pay. Familiar duties still apply as well. Deposit protection, gas and electrical safety checks and right to rent verification did not disappear, and they now sit alongside the extra paperwork rather than replacing any of it.
| Rule | What it means now |
|---|---|
| Tenant notice to leave | Around two months, ending at a rent period |
| Rent increase | Once a year, market rate, via a Section 13 notice |
| Arrears eviction threshold | Three months of arrears, up from two |
| Move-in or sale grounds | Twelve month protected period, then longer notice |
| Information sheet (existing tenants) | Serve by 31 May 2026, penalty up to £7,000 |
| Deadline: Landlords with tenancies running before the reforms had to give existing tenants the government information sheet by 31 May 2026. Missing it can trigger a civil penalty of up to £7,000. |
Record keeping now carries real weight. Because no-fault possession has gone, any claim rests on solid evidence, so treating the role like a business and managing a rental property well protects you if a dispute later arises.
| Landlord tip: With no-fault possession gone, evidence is everything. Log rent payments, inspections and any breaches from day one so a Section 8 case rests on a clear paper trail. |
What periodic tenancies mean in practice
For most owners, daily life will feel familiar, though the edges have shifted. A tenancy simply continues until one party acts, which suits those who value long, stable arrangements and steady, predictable occupancy over frequent turnover.
The trade off is less certainty over timing. Without scheduled renewals, you cannot assume a household will remain for a fixed window, and the rent can only move through the formal yearly route. Building your cash flow around those limits is now part of the day job. A capable letting agent can shoulder much of the burden, from serving compliant notices to tracking rent reviews and holding an audit trail that stands up if a case ever reaches court.
One landlord praised a local lettings team for replying quickly and securing a suitable tenant smoothly, a reminder that sound management counts for most when the rules are in flux.
Many owners are responding by reviewing their holdings and leaning on professional support to stay on the right side of the law. If you are weighing up whether to keep a home or exit, it helps to read around how to protect your London property investment before your next rent review or possession decision.
Frequently Asked Questions
What did the term statutory periodic tenancy mean?
It described a rolling let that took over automatically when a fixed agreement ended and the occupier stayed put. The arrangement carried on under the original terms until one party ended it through the proper process.
Do these tenancies still exist in 2026?
The idea still helps explain older lets, though the new legislation has reshaped things so that fresh agreements begin as assured periodic tenancies. In practice, almost everything in the private sector is now a rolling let from the first day.
How much notice must a tenant give to move out?
Usually two months, ending at a rent period, will do. Because owners can no longer serve a no-fault notice, they must point to a valid ground under the reformed possession rules if they want the home back.
Can a landlord still put the rent up?
Yes, though only once in any twelve month stretch and up to the local market level, served through the correct statutory form. A household that regards the proposed figure as excessive may take the matter to a tribunal.
When was the tenant information sheet due?
Owners with lets already running before the reforms took effect had to hand tenants the official government information sheet by the end of May 2026. Miss that window and the penalty can reach £7,000.
Conclusion
The switch to periodic lets marks a genuine change in how renting works, yet the fundamentals for landlords have not vanished. Understand how your agreements are classified, serve the right notices, and keep clean records at every stage. Get those basics in place and the reformed system is manageable rather than daunting. The owners who thrive will be those who treat compliance as part of running a business, not an afterthought, and who take proper advice whenever a situation looks unclear.
Fact Check: All statistics and data points in this article were verified against original sources as of 10 July 2026.
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