What Is A Periodic Tenancy? Definition & Guide For 2025 

Understanding the various types of tenancy agreements and knowing how and when to use them effectively is crucial for managing properties in the UK. One of the most common and confusing is the periodic tenancy. 

Keep reading for a focused breakdown of what a periodic tenancy is and the difference between contractual and statutory periodic tenancies. We’ll include everything UK landlords need to know about them as of mid-2025. 

Periodic Tenancy Meaning: What It Actually Means

A periodic tenancy (sometimes called a rolling tenancy) kicks in when a fixed-term tenancy ends but the tenant continues to live in the property. 

They don’t have a set end date, and instead continue on a weekly or monthly basis until either the landlord or tenant gives notice.

There are two types you’re likely to come across:

• Contractual periodic tenancy
• Statutory periodic tenancy

You must know the type you’re dealing with because it affects how you can end the tenancy or make changes to the agreement.

Contractual vs Statutory Periodic Tenancy

While both types of periodic tenancy allow the tenancy to continue after a fixed term ends, they operate differently—and it’s important to understand the distinction.

Some landlords assume that what’s written in the tenancy agreement will always apply, but in some cases, statutory law takes precedence.

For example, one landlord posting on r/uklandlords shared:

“Firstly, statutory law says one month's notice, so no matter how long the landlord put in the contract, you would only have to give one month.”

This is true if the tenancy has become a statutory periodic tenancy because under this type of agreement, notice requirements are governed by legislation, not the original contract.

Here’s how they work. 

Contractual Periodic Tenancy

A contractual periodic tenancy is created when the original tenancy agreement includes a clause that allows the tenancy to continue periodically after the fixed term ends. 

In this case, the periodic tenancy is a continuation of the original agreement, and its terms, such as notice periods and rent increase procedures, remain binding.

For example, if the agreement says the tenant must give one month’s notice, that’s what stands, even if statutory rules would normally require more.

To end a contractual periodic tenancy, a landlord may still need to serve a Section 21 or Section 8 notice depending on the situation—but in some cases, the tenancy may allow for simpler notice, provided it’s contractually valid and legally enforceable. 

Statutory Periodic Tenancy

A statutory periodic tenancy arises automatically when a fixed-term tenancy ends without a clause allowing it to continue as a periodic tenancy. The tenancy continues by operation of law, under Section 5 of the Housing Act 1988 and the grounds set out in Schedule 2.

In this case:

• Landlords must serve notice under Section 21 (for no-fault evictions) or Section 8 (if seeking possession on specific legal grounds), typically with a minimum of two months’ notice for Section 21.
• Tenants must provide at least one full rental period’s notice (often one month), ending on the last day of a tenancy period.

Because statutory periodic tenancies are governed by legislation, tenants may have more legal protections, particularly when it comes to eviction and notice requirements.

Practical Examples

To see how the rules play out in real life, here are two common scenarios:

Scenario 1: Statutory Periodic Tenancy

The tenant’s fixed term ends on 1 April, and no new agreement is signed. The tenant stays on and continues paying rent. At this point, the tenancy automatically becomes a statutory periodic tenancy.

If the landlord wants to regain possession, they would then need to serve a Section 21 notice with at least two months’ notice. That means the earliest the tenant would need to leave is 1 June.

Scenario 2: Contractual Periodic Tenancy

The original tenancy agreement includes a clause like: “The tenancy will continue after the fixed term on the same terms, ending with one month’s written notice from either party.”

In this case, it’s a contractual periodic tenancy, and the notice terms in the agreement apply. The landlord can give just one month’s notice, even though the statutory minimum for a Section 21 is longer. This is because the contract terms take priority here.

Note: Regardless of whether the tenancy is statutory or contractual, landlords must still comply with broader legal requirements when ending a tenancy, including deposit protection rules, valid gas safety certificates, and the correct form of notice.

Why It Matters in 2025

With the anticipated implementation of the Renters’ Rights Bill, understanding periodic tenancies is more important than ever. 

One of the most transformative elements of the legislation is the proposed end of fixed-term tenancies, meaning all tenancies will shift to periodic agreements with no set end date.

This gives tenants greater flexibility to leave with proper notice, while landlords will no longer be able to end tenancies without a valid reason. 

And as no-fault evictions under Section 21 are also set to be abolished, landlords will need to rely solely on Section 8 grounds, such as rent arrears or breach of contract, when seeking possession. 

Another key change already in effect for periodic tenancies is that rent increases will be limited to once per year, and landlords must follow specific notice periods. 

If rent disputes escalate to a tribunal, decisions often hinge on whether landlords have followed the proper legal process for the tenancy type. Mistakes like serving the wrong notice or failing to observe proper rent increase procedures could lead to delays, invalid evictions, or decisions that favour the tenant. 

Notice Required to End A Periodic Tenancy

When it comes to ending a statutory periodic tenancy, landlords must serve either a Section 21 notice (for no-fault evictions) or a Section 8 notice (when there are legal grounds, such as rent arrears or anti-social behaviour). 

In either case, landlords need to give at least two months’ written notice. That notice must be delivered at least two months before the intended move-out date.

Ending a contractual periodic tenancy, on the other hand, depends entirely on the terms set out in the original agreement. If the contract says either party must give one month’s notice, that’s the rule you follow. 

However, landlords can still use a Section 8 notice if the tenant breaches the agreement and the relevant grounds apply.

Rent Increase Laws With A Periodic Tenancy

Rent increases also differ depending on the tenancy type. For a statutory periodic tenancy, rent can only be increased once per year, and landlords must use a Section 13 notice. This process is only valid if rent is paid on a weekly or monthly basis.

With a contractual periodic tenancy, rent increases must follow the terms set out in the original agreement. In most cases, this means the landlord needs the tenant’s agreement, or must follow a set review process detailed in the contract.

Related: About Section 13: Notice of Rent Increase Form for UK Landlords

Mistakes Landlords Make When Using Periodic Tenancies

Managing periodic tenancies comes with its share of pitfalls. This is doubly the case if you're not clear on the legal requirements. Here are a few mistakes that can lead to major setbacks:

Using the wrong notice period

One of the most frequent errors is giving only one month’s notice on a statutory periodic tenancy. Legally, landlords must give two full months’ notice, and anything less can invalidate the process.

Relying on verbal notice

Notices need to be in writing and delivered correctly. This means either in person, by post, or through another method outlined in the tenancy agreement. Verbal notice doesn’t count and won’t hold up if challenged.

Mishandling rent increases

With statutory periodic tenancies, rent increases are only allowed once per year and must follow the Section 13 process. Skipping this or increasing rent without proper notice can make the increase unenforceable.

Related: What Is A Fair Rent Increase In The UK?

Not documenting tenancy transitions

When a tenancy moves from fixed-term to periodic, you need to record that change clearly. Tools like Landlord Studio can help by automatically tracking tenancy stages and storing all your notices, agreements, and communications securely in one place.

Benefits of Periodic Tenancies (when used well)

Despite their weaknesses, which we have discussed at length, periodic tenancies can offer real advantages for both landlords and tenants. Particularly when flexibility is a priority.

They’re ideal for situations where neither party wants to commit to a long fixed-term because they allow the tenancy to continue naturally without the need to draw up a new agreement. This ongoing arrangement means there’s less admin required and transitions are smoother. 

Rent reviews can also be easier to manage in a periodic setup, especially if both landlord and tenant are on good terms and open to occasional adjustments.

That said, it’s important to remember that a periodic tenancy is still a formal legal arrangement rather than a casual extension of the previous term. 

When You Might Want to Switch to a Fixed-Term Agreement

While periodic tenancies offer flexibility, there are times when switching back to a fixed-term agreement makes more sense. Especially when you need greater control. 

A fixed-term tenancy can be a better option if you’re planning major changes like selling the property, or you just want the certainty of set dates. It also removes the ambiguity around notice periods, giving clear start and end points.

Fixed terms also allow for better control over rent schedules and renewal terms. At the end of each fixed period, you can choose to offer a renewal with updated terms, roll into a contractual periodic tenancy, or simply end the tenancy properly with the correct notice.

Landlord Studio helps put the details in your hands: automatic tracking of tenancy start and end dates, a range of free templates, automated rent reminders to reduce late rent, and centralised storage of essential documents and records.

If you want to operate stress-free and handle every tenancy type with confidence, try Landlord Studio free today and organise your rental management like a pro.

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