A periodic tenancy is a rental agreement that continues indefinitely until either the landlord or the tenant serves notice to end it. Unlike fixed-term tenancies, periodic tenancies work on a rolling basis, typically week to week or month to month. In this guide, we'll be deep-diving into what a periodic tenancy is, the different types of agreements, the benefits and the risks.
Periodic tenancy meaning
The term periodic tenancy refers to a tenancy agreement without a fixed end date. It continues on a period-by-period basis - commonly weekly or monthly - until notice is given. This type of tenancy automatically renews at the end of each rental period. For example, a monthly periodic tenancy will renew every month, with the same terms as the original agreement unless changes are agreed upon.
Types of periodic tenancy agreements
Periodic tenancies come in two main forms: statutory periodic tenancy and contractual periodic tenancy. Each works a little differently with its own set of rules for both landlords and tenants.
Statutory periodic tenancy explained
A statutory periodic tenancy happens automatically when a fixed-term tenancy expires. The only time it wouldn't happen is if the landlord or the tenant signs a new agreement or issues a formal notice to end the tenancy. This type of tenancy is governed by the Housing Act 1988, which ensures that tenants maintain their occupancy rights even without a formal contract renewal.
In general, statutory periodic tenancies are ideal for situations where both parties need flexibility, such as when the tenant may be considering moving out or the landlord is uncertain about long-term property plans. Some of the key features include:
Automatic renewal: The tenancy continues on the same terms as the expired fixed-term agreement, but it renews on a rolling basis. This is often monthly, weekly or at the same frequency as the original rent payments.
Flexibility: Both landlords and tenants have the freedom to terminate the agreement with relatively short notice (two months for landlords, and usually one rental period for tenants).
Legal compliance: Landlords must serve notice using appropriate legal processes, such as a Section 21 notice or a Section 8 notice.
Contractual periodic tenancy explained
A contractual periodic tenancy arises when the tenancy agreement explicitly specifies that the tenancy will continue on a rolling basis after the fixed term ends. Unlike statutory periodic tenancies, these agreements are planned in advance and are legally binding based on the terms set out in the original contract.
Key features include:
Pre-arranged terms: The tenancy rolls on under conditions specified in the original agreement, including any changes to rent, notice periods or responsibilities.
Defined notice requirements: Both the landlord and tenant must adhere to the notice periods stipulated in the contract.
Greater predictability: Because the continuation of the tenancy is planned, contractual periodic tenancies offer more structure compared to statutory tenancies.
đź’ˇEditor's insight
"Not sure which type you have? Check your rental agreement. A contractual periodic tenancy is often written into the terms with phrases like 'continue as a periodic tenancy' or 'carry on from week to week'."
Statutory and contractual periodic tenancies compared
Aspect | Statutory periodic tenancy | Contractual periodic tenancy |
|---|---|---|
Origin | Automatically arises when a fixed-term tenancy ends | Explicitly agreed upon in the original tenancy agreement |
Governing framework | Governed by the Housing Act 1988 | Governed by the terms of the contract |
Notice periods | Statutory minimums | Determined by the contract |
Flexibility | Highly flexible for both parties | Less flexible but more predictable |
Clarity of terms | Based on the expired tenancy agreement’s terms | Defined explicitly in the tenancy contract |
Ending a periodic tenancy as a landlord
As a landlord, you'll need to be compliant with UK law when ending a periodic tenancy. The steps and notice requirements vary depending on the reasons for ending the tenancy and the type of notice served. To end a periodic tenancy, landlords must serve one of two types of notice depending on the circumstances:
Section 21 notice (or a no-fault eviction)
A Section 21 notice allows landlords to regain possession of their property without having to provide a reason, provided they meet all legal requirements. In a nutshell:
Landlords must give tenants at least two months notice.
A Section 21 notice cannot be served during the first four months of a tenancy,
It's invalid if the landlord has not complied with legal obligations, such as protecting the tenant's deposit in an approved scheme or providing an up-to-date gas safety certificate.
Section 8 notice (for breaches of tenancy)
If a tenant has breached the terms of the tenancy agreement, such as failing to pay rent, landlords can serve a Section 8 notice. The required notice varies depending on the grounds for eviction, as outlined in Schedule 2 of the Housing Act 1988. The Section 8 notice must also specify the legal grounds for possession, such as anti-social behaviour, damage to the property or persistent late rent payments.
Important considerations for landlords
Ending a periodic tenancy as a landlord involves careful adherence to legal processes. Proper planning and legal guidance can ensure a smooth transition while minimising the risk of disputes.
Compliance with regulations
Before serving notice, landlords must ensure compliance with all legal requirements, including:
Protecting the tenant’s deposit in an approved scheme.
Providing the tenant with the How to Rent guide, energy performance certificate (EPC), and gas safety certificate.
Addressing any tenant complaints or maintenance issues, as unresolved disputes may lead to claims of retaliatory eviction, invalidating a Section 21 notice.
Court proceedings
If the tenant refuses to leave after the notice period, the landlord must apply to the court for a possession order. A dedicated possession order solicitor can guide you through the process.
Eviction without a court order is illegal and may result in penalties, including fines and potential imprisonment.
Ending a periodic tenancy as a tenant
Tenants can end a periodic tenancy by serving notice, typically equal to one rental period:
Statutory periodic tenancy: Tenants must provide at least one month's notice for monthly tenancies or four weeks' notice for weekly tenancies.
Contractual periodic tenancy: Notice requirements depend on the agreement terms but cannot be less than the statutory minimum.
Submitting notice in writing: Tenants should confirm their notice in writing and keep proof for reference.
What are the pros and cons of a periodic tenancy for landlords?
Pros ✅ | Cons ❌ |
|---|---|
Landlords can regain possession of the property relatively quickly if needed. | Tenants can leave with minimal notice, potentially leading to unexpected void periods. |
No need to negotiate or sign a new tenancy agreement after the fixed term ends. | Without a fixed term, landlords may find it harder to enforce certain conditions. |
Ideal for situations where long-term agreements may not be practical. | A lack of formal structure can lead to misunderstandings about responsibilities. |
Other types of tenancy agreements
Periodic tenancies aren't the only type of agreement available. Here some of the most common alternatives:
Fixed-term tenancy: A set agreement for a specified period, often six or twelve months.
Assured shorthold tenancy (AST): The most common type of tenancy in the UK, which may transition into a statutory periodic tenancy after the fixed term ends. You can learn more in our guide to what is an assured shorthold tenancy.
Excluded tenancy or licence: Common in shared housing situations, offering less security for tenants.
Assured tenancy: Provides tenants with greater long-term security but is less common in private rentals.
FAQs
What happens when a tenancy goes periodic?
When a tenancy goes periodic, it transitions from a fixed term to a rolling agreement. The terms of the original tenancy generally remain the same, but the notice periods for ending the tenancy may change.
Why would a landlord want a periodic tenancy?
Landlords may prefer periodic tenancies for their flexibility, particularly if they anticipate needing to regain possession of the property or adjust rental terms in the near future.
Final thoughts
Periodic tenancies provide a practical solution for both landlords and tenants seeking flexibility after a fixed-term agreement ends. However, they require clear communication and an understanding of legal responsibilities to prevent disputes. Whether you’re a landlord or a tenant, seeking professional advice can help you navigate the complexities of periodic tenancy agreements. Get in touch today to see how our tenant and landlord solicitors can help