Landlords urged to act early for the Renters’ Rights Bill

The abolition of fixed-term tenancy agreements and replacing them with open-ended, periodic arrangements will redefine the dynamics between landlords and tenants, one PRS expert says.

The change is part of the Renters’ Rights Bill which will allow renters to exit tenancies with just two months’ notice.

Now, Allison Thompson, the national lettings managing director at Leaders, is urging landlords to act by urgently reviewing their tenancy agreements.

They also need to look at maintaining properties to retain tenants and monitor local rent trends to minimise voids, she says.

By taking action early, landlords can ‘adapt with confidence’ and continue running successful rental businesses.

Tenants take control

Ms Thompson said: “If passed in its current form, the Bill will introduce open-ended tenancy agreements as standard. This would reshape how private rentals work, with big implications for landlords, tenants and agents alike.

“We believe the move to periodic tenancies can work well for everyone involved when approached with the right strategy.”

For landlords, she says, the shift could disrupt the predictability of fixed-term agreements, which typically span 12 months with a six-month break clause.

The change may lead to more frequent tenant turnover and potential gaps in rental income.

However, Ms Thompson sees a silver lining: “Landlords would gain more flexibility to adjust rents in line with market conditions and regain possession of their property more easily, provided they follow the correct legal process.”

The English Housing Survey reveals that tenants typically stay for more than four years.

Non-compliance, however, carries a sting since landlords issuing fixed-term contracts post-legislation could face fines of up to £7,000.

Student landlord issues

Student properties have sparked debate as an amendment proposed in the House of Lords seeking to preserve fixed-term tenancies for shared student houses (HMOs) to align with academic calendars wasn’t taken up.

However, purpose-built student accommodation (PBSA) remains exempt, and will continue with fixed-term contracts.

Ms Thompson said: “Landlords operating in the student market should begin preparing for different rules depending on the type of property and agreement in place.”

As the Bill progresses, existing fixed-term tenancies are expected to transition automatically to periodic agreements, with landlords obliged to notify tenants within a specified period.

Leaders is proactively preparing its clients, revising contracts and offering guidance to navigate the changes.