- All tenancies move to rolling contracts under new law
- Tenants gain right to leave with two months’ notice
- Section 21 evictions to be scrapped under reforms
The UK rental market is set for a major reset, with fixed-term tenancy agreements being phased out from May 1 under the upcoming Renters’ Rights Act. The shift will move all landlords and tenants onto a single system of rolling contracts, marking one of the biggest structural changes in the sector in years.
Ahead of the rollout, Propertymark has introduced a new Assured Periodic Tenancy agreement designed to help letting agents comply with the updated rules. The move comes as the industry prepares for a full transition away from Assured Shorthold Tenancies, which have long been the standard.
A complete reset for rental contracts
From May 1, all new and existing tenancies will automatically become Assured Periodic Tenancies. This means contracts will no longer have fixed end dates, instead continuing on a rolling basis unless either party chooses to end them.
Tenants will be allowed to leave at any point, provided they give at least two months’ notice. At the same time, landlords will no longer be able to use Section 21 ‘no-fault’ evictions, with possession cases expected to rely on updated legal grounds.
Propertymark says its new agreement reflects these legal changes and is intended to give letting agents a ready-to-use contract that meets the new requirements.
The reforms also introduce a series of additional obligations for landlords and agents. Rent increases will be limited to once per year, and bidding wars between tenants will be banned.
Where no written tenancy agreement exists, landlords or agents will need to provide a formal statement of key terms by May 31, 2026. Existing tenants must also be given an official information sheet by the same date.
There are also new limits on upfront payments. Rent in advance cannot exceed one month’s rent and cannot be taken before the agreement is signed.
The law will also make it illegal to discriminate against tenants with children or those receiving benefits, a move that could widen access to rental housing.
Industry adjusts to a new normal
The new tenancy agreement released by Propertymark will be available to members of ARLA Propertymark and those signed up to its Company Advantage scheme.
While the reforms are aimed at improving tenant security, they also represent a significant shift for landlords and agents who have relied on fixed-term agreements for decades.
How smoothly the transition plays out may depend on how quickly the sector adapts to the new framework, and whether further guidance follows once the rules take effect.
