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Blog Series: Preparing for the Renters’ Rights Act – Part 3
For many landlords, the most significant practical consequence of the Renters’ Rights Act will not simply be the loss of Section 21. It will be the disappearance of the fixed-term tenancy structure that has shaped the private rented sector for decades.
Under the current system, many landlords rely on fixed-term Assured Shorthold Tenancies. Even if tenants stay for years, the existence of a fixed term provides a natural point at which the landlord can reassess the arrangement.
The new system removes that structure.
Instead, tenancies will become assured periodic tenancies from the outset, meaning they continue indefinitely unless ended by notice or by possession proceedings. In other words, there will no longer be a built-in end date to the tenancy.
For landlords, that change has important consequences for planning, possession strategy and long-term property management.
Why the government is replacing fixed terms
The government’s stated aim is to provide tenants with greater security and stability.
Under the new framework, tenants will not face a situation where their tenancy automatically ends simply because the fixed term has expired. Instead, the tenancy continues unless the tenant chooses to leave or the landlord relies on a valid legal ground to regain possession.
In theory, this creates longer and more stable tenancies. In practice, it means landlords must rely more heavily on the Section 8 possession grounds rather than the expiry of a tenancy term.
How assured periodic tenancies will work
An assured periodic tenancy is a tenancy with no fixed end date. It continues from one rental period to the next — typically monthly — until one party gives notice or a court grants possession.
For tenants, this provides flexibility and security. They will normally be able to leave the tenancy by giving two months’ notice.
For landlords, the key point is that possession will always require a recognised legal ground. Simply waiting for a fixed term to expire will no longer be enough.
This makes possession planning far more important than under the previous system.
Possession after the abolition of Section 21
Once Section 21 is removed, every possession claim will rely on Section 8 grounds.
These grounds cover a range of situations where it may be reasonable for a landlord to regain possession. Some are mandatory, meaning the court must grant possession if the ground is proven. Others are discretionary, meaning the court will decide whether possession is justified.
Common grounds landlords are expected to rely on include:
Sale of the property
Landlords will be able to regain possession if they genuinely intend to sell the property. This ground is expected to require four months’ notice and cannot usually be used during the first twelve months of the tenancy.
Landlord or family occupation
Possession may also be available where the landlord, or in some cases a close family member, intends to move into the property. This ground is also expected to require four months’ notice and be subject to the same twelve-month restriction.
Serious rent arrears
Rent arrears remain one of the clearest mandatory grounds for possession. However, the threshold is increasing so that tenants will generally need to owe at least three months’ rent, and those arrears must still exist at the court hearing.
Anti-social behaviour
Anti-social behaviour can still justify possession, often with shorter notice periods. In some cases landlords may be able to proceed with two weeks’ notice, although strong evidence will usually be required.
Breach of tenancy conditions
Where a tenant has breached the tenancy agreement — for example through property damage or repeated failure to comply with agreed terms — possession may be possible under discretionary grounds.
In these cases the court will assess whether granting possession is reasonable, which means documentation and evidence become particularly important.
The end of fixed-term “break points”
One of the less obvious consequences of the move to periodic tenancies is the loss of natural decision points.
Under the old system, landlords often reviewed the tenancy when a fixed term approached its end. This was the moment to renegotiate rent, consider selling the property, or decide whether the tenancy should continue.
With periodic tenancies, those moments disappear.
Instead, landlords must think more strategically about when they may need to rely on possession grounds and how notice periods affect their plans.
For example, a landlord who intends to sell a property in the future will need to consider the four-month notice period and the twelve-month restriction when planning the tenancy.
Why evidence will matter more than before
Another theme running through possession reform is the importance of documentation.
Where landlords rely on discretionary grounds — such as breach of tenancy or persistent late rent — courts will often expect to see evidence that supports the claim. This might include inspection reports, written warnings, communication logs or rent schedules.
Even in mandatory cases, landlords will still need to show that the legal conditions for the ground have been met.
This is one of the reasons many industry commentators expect possession proceedings to become more detailed and more heavily scrutinised.
What possession reform means in practice
The new framework does not remove landlords’ ability to regain possession of their property. However, it does change the way that right is exercised.
Landlords will need to:
- understand the available possession grounds
- serve the correct notice period
- ensure compliance documentation is in order
- maintain clear records of tenant conduct and communication
Errors in any of these areas can delay proceedings or invalidate notices entirely.
Possession reform in the wider context
The shift to periodic tenancies is only one part of a broader restructuring of the private rented sector.
The Renters’ Rights Act also introduces stronger enforcement powers for local authorities, tighter rules around rent increases, a national PRS landlord database, and a mandatory landlord ombudsman scheme.
Together, these changes reflect a move towards a more regulated and professionalised sector.
You can read more about these changes in our Renters’ Rights Act Hub, where we break down each reform in detail.
Final thoughts
The move away from fixed-term tenancies marks one of the most fundamental structural changes in the private rented sector.
Landlords will still be able to regain possession where legitimate reasons exist — including selling the property, moving back in, or dealing with serious rent arrears or tenant misconduct. But the process will rely much more heavily on correct legal grounds and supporting evidence.
Understanding how the new possession framework works now, rather than waiting until the legislation is implemented, will help landlords avoid surprises when the new system takes effect.