Statutory and Contractual periodic tenancies are becoming quite common, yet often misunderstood, areas of rental agreements in the UK.
Whether a long-standing landlord or someone new to property management, it is crucial to understand statutory and contractual periodic tenancies.
These types of tenancies will determine the relationship between landlords and tenants when a fixed-term agreement concludes.
Specific to periodic tenancies, this guide will explain the differences between statutory and contractual periodic tenancies and key considerations that every landlord should take into account.
What Is a Periodic Tenancy?
A periodic tenancy is a tenancy that automatically rolls over at the end of the fixed term of the tenancy agreement.
Unlike fixed-term agreements, periodic tenancies do not have a defined end date. They renew by default at the end of every rental period, which may be weekly, monthly, or even quarterly, dependent upon the payment schedule agreed upon by landlord and tenant.
There are mainly two kinds of periodic tenancies, statutory and contractual periodic tenancies. While they share similarities, they have their distinguishing origins and bring different legal regimes into play.
What is Statutory Periodic Tenancy?
Before 1 May 2026, a statutory periodic tenancy arose automatically once a fixed-term tenancy ended, under Section 5 of the Housing Act 1988, provided no new agreement was signed and the tenant stayed on with the landlord's consent.
Since the Renters' Rights Act 2025 came into force, fixed terms no longer exist for assured tenancies, so this route no longer arises for new lettings. Every assured tenancy is now periodic from day one, known as an assured periodic tenancy.
Legal Framework – Created by statute, though its terms carried over from the original fixed-term agreement.
Renewal Process – Rolled over automatically at the end of each rent period, weekly, monthly, or however rent was paid. This is still true of every assured periodic tenancy today.
Termination (before 1 May 2026) – Ended by the landlord serving a Section 21 or Section 8 notice, or the tenant giving notice equal to the rental period.
Termination (from 1 May 2026) – Landlords now need a Section 8 ground (see notice table below); tenants can give two months' notice regardless of how rent is paid.
Key Advantages for Landlords:
No need to draft a new agreement immediately.
Provides flexibility to adjust terms for future tenancies.
Potential Drawbacks:
Limited ability to enforce new terms unless a fresh agreement is signed.
Increased uncertainty if tenants vacate without sufficient notice.
What is Contractual Periodic Tenancy?
A contractual periodic tenancy was explicitly agreed upon in the original tenancy agreement, designed to continue periodically after a fixed term ended without requiring further action though fixed terms no longer exist for new lettings since the Renters' Rights Act 2025.
Legal Basis – Found in the terms of a written agreement between landlord and tenant, whereas a statutory periodic tenancy was created by statute.
Customisation – Renewal terms could be tailored, including clauses on notice periods, rent adjustments, and property maintenance. New agreements can no longer include a fixed term to tailor in this way.
Benefits of Contractual Periodic Tenancies:
Greater control over the terms of the periodic phase.
Can include provisions to reduce ambiguity or protect landlord interests.
Challenges for Landlords:
Requires careful drafting of the tenancy agreement.
May necessitate legal advice to ensure compliance with housing laws.
What Are the Rules with a Periodic Tenancy
The rules governing a periodic tenancy largely depend on whether it is statutory or contractual. Both types operate on a rolling basis, usually aligned with the rental payment period.
While statutory periodic tenancies follow legal frameworks set out in housing laws, contractual periodic tenancies follow terms specified in the original agreement.
Landlords must ensure that proper notice is given when ending a periodic tenancy. They must also adhere to legal obligations such as protecting tenant deposits and ensuring the property meets safety standards, regardless of the tenancy type.
How Can a Landlord End a Statutory Periodic Tenancy
Before 1 May 2026, a landlord could end a statutory periodic tenancy with a Section 21 notice, giving at least two months' notice without stating a reason. That route no longer exists.
Since the Renters' Rights Act 2025 came into force, landlords can only regain possession by serving a Section 8 notice on one of the specified grounds, such as selling the property or moving in themselves.
Note: Notice periods and conditions vary by ground, refer to the table below.
Serving on the wrong ground or with the wrong notice period is the most common reason a claim fails. A correctly structured Section 8 notice template reduces that risk.
Statutory Periodic Tenancy Notice Period
Notice periods under Section 8 depend on the ground used:
Ground | Notice period | Key condition |
|---|---|---|
Ground 1 (landlord/family moving in) | 4 months | Notice cannot expire before the tenancy reaches 12 months, so it can be served from month 8 onward |
Ground 1A (landlord selling) | 4 months | Same 12-month rule as Ground 1; property can't be re-let or marketed for 12 months after |
Ground 8 (serious rent arrears) | 4 weeks | Arrears threshold raised to 13 weeks / 3 months (from 8 weeks / 2 months); must still meet the threshold at the court hearing, not just when notice is served |
Anti-social behaviour grounds | Can be shorter, sometimes immediate | Discretionary, court retains discretion on whether to grant possession |
Deposit protection when a tenancy becomes periodic
The two types of periodic tenancy used to carry different deposit risks, and the distinction is worth understanding even now.
A statutory periodic tenancy was a new tenancy at law. A contractual one was a continuation of the original. That difference decided whether the deposit had to be protected again when the fixed term ended, and it caught a lot of landlords out.
The timeline above shows how the position moved from that trap to today's settled rule. For a correctly protected deposit, nothing further is needed when a tenancy becomes periodic.
What remains is the original duty and the risk of not being able to prove you met it. When a possession claim reaches court, deposit compliance is scrutinised early, and a landlord who cannot show the deposit was protected in time and the prescribed information served is exposed.
RentalBux stores deposit records and compliance documents against each tenancy, so the evidence sits in one place if a claim is ever tested.
Contractual Periodic Tenancy Notice Period
The notice period for a contractual periodic tenancy was set out in the original agreement between the landlord and the tenant, and could vary offering either more flexibility or more rigidity compared to statutory notice periods. This still matters for a tenant on an older agreement.
If it specified a notice period shorter than the current two-month standard, that shorter period still applies. If poorly drafted or ambiguous, disputes may arise regarding how and when notice can be served.
How to End Contractual Periodic Tenancy
Ending a contractual periodic tenancy historically required following the terms outlined in the tenancy agreement. This includes providing notice as agreed upon in the contract and ensuring all conditions are met.
For any tenancy today, a landlord must instead rely on a Section 8 ground, regardless of what the original agreement says about notice or termination. Landlords should retain documentation and correspondence to protect their position in case of disputes or legal challenges.
Why Landlords Should Understand Periodic Tenancies
Both statutory and contractual periodic tenancies may afford landlords some flexibility, yet they can be fraught with pitfalls.
The better the understanding a landlord has, the more smoothly they will be able to run their particular rental property, attempt to avoid disputes, and protect their income.
Whatever form the tenancy takes, the rent it produces is taxable property income that must be reported to HMRC. Landlords within the Making Tax Digital for Income Tax thresholds now keep digital records and file quarterly rather than through a single annual return.
To check whether a given year's rental income brings you within the Making Tax Digital rules, use the checker below.
Making Tax Digital Checker
Find out if and when you need to join MTD for Income Tax Self Assessment
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Advantages of Periodic Tenancies
Flexibility – A periodic tenancy gives landlords the ability to change in line with market conditions.
Simplicity – No immediate renegotiation or drawing up of a new tenancy agreement is required for statutory periodic tenancies.
Legal Continuity – These tenancies ensure that the landlord-tenant relationship is continuous without creating a gap in protection.
Challenges of Periodic Tenancies
Notice Periods – Usually, periodic tenancies have a pretty short notice, which may create potential vacancy risks.
Unclear Terms – In the absence of a proper binding contract, there could be disputes over who is responsible for the maintenance, increase of rent, or notice period.
Regulatory Compliance – Landlords have to observe the relevant housing laws, particularly as regards the procedures for eviction.
Auto-renewal clauses after the Renters' Rights Act
An auto-renewal clause once let a fixed-term tenancy roll into a periodic one automatically, without a new agreement, unless either party gave notice to end it.
Now that fixed terms have been abolished for assured tenancies, there is nothing left for such a clause to convert.
Every tenancy is periodic from the outset, so the clause has no effect. A landlord with one sitting in an older agreement need not remove it, but should not rely on it either.
The clause caused problems even when it worked. It could reduce a landlord's flexibility to change terms or recover the property, and disputes arose when one party forgot the clause was there or misread the notice it required.
How to Draft a Periodic Tenancy Agreement
Drafting a periodic tenancy agreement has to be done carefully to ensure that the rights and responsibilities of all parties concerned are clearly spelled out.
RentalBux offers an assured periodic tenancy agreement template drafted to Renters' Rights Act requirements.
Key Elements to Include:
Rent Payment Schedule – Make sure to state whether the payments will be made weekly, monthly, or quarterly.
Notice Periods – Clearly outline the required notice for termination by either party.
Maintenance Obligations – State the responsibilities of the landlord as well as the tenant regarding the maintenance.
Rent Increases – Include clauses that state how and when the rent reviews or increases may occur.
Best Practices
Speak plainly to avoid misunderstanding.
Seek legal advice to ensure that your agreement complies with local housing laws.
Regularly review the agreement to reflect market changes and updates, if any, on relevant regulations.
Conclusion
Statutory and Contractual Periodic Tenancies play a huge role in the UK's private rental market. To landlords, their understanding is quite vital for proper management of their properties and to avoid legal entanglements.
A proper understanding of the differences between statutory and contractual periodic tenancies is the key to smoothly drafting tenancy agreements to suit one's needs and ensuring a profitable let.
If you are a landlord navigating periodic tenancies, take the time to familiarise yourself with the legal requirements, market dynamics, and best practices for drafting agreements.
Armed with this knowledge, you will be better equipped to handle the complexities of statutory and contractual periodic tenancy agreements and maintain positive relationships with your tenants.
