Say Goodbye to Fixed-Term Tenancies: How Periodic Tenancies Affect Your Income

TL;DR

The Renters’ Rights Act 2025 abolishes fixed-term tenancies and shifts all rental agreements to periodic tenancies. This change means that tenants can leave with just two months’ notice, creating more unpredictability for landlords. Learn how this affects your income and how Citywide Housing’s guaranteed rent scheme ensures consistent monthly rent, even in a more flexible tenancy environment.

What’s in This Article

• How Fixed-Term Tenancies Will Change
• What This Means for Your Rental Income
• Why Periodic Tenancies Create Uncertainty for Landlords
• How Citywide Housing Protects Your Income
• FAQs
• Next Steps for Landlords

How Fixed-Term Tenancies Will Change

Under the Renters’ Rights Act 2025, all fixed-term Assured Shorthold Tenancies (ASTs) will convert to periodic tenancies. This means that:

• No more guaranteed 12-month contracts aligned with the academic year or employment cycles.
• Tenants can leave with just two months’ notice at any point during the tenancy, making tenant turnover harder to predict.

While tenants will still have to give notice, the lack of a fixed-term contract means landlords are exposed to higher risk of voids. This is particularly concerning in student markets or areas with professional sharers, where turnover is already a challenge.

What This Means for Your Rental Income

Without fixed terms, landlords lose the ability to plan income around long-term stability. For landlords with multiple properties, this can create cashflow instability, especially if tenants vacate at inconvenient times.

Example: Bradford HMO Landlord Scenario

A landlord in Bradford rents out a 5-bedroom HMO under a fixed-term agreement. Mid-year, two tenants decide to leave. Under the new rules, the landlord now faces:

• Increased voids (because tenants can leave with only two months’ notice).
• Uncertainty over when new tenants will move in, potentially leaving the landlord without income for an extended period.

Loss in rent due to voids: If 2 rooms out of 5 are vacant for just 2 months, the landlord loses £1,000 in rent (assuming £500 per room per month).

Why Periodic Tenancies Create Uncertainty for Landlords

Periodic tenancies create unpredictable vacancy risks, making it harder to:

1. Plan income over the long term.
2. Budget for repairs, maintenance, and improvements.
3. Avoid gaps between tenants.

In areas like Leeds, where student tenants and young professionals are often moving in and out, tenant turnover could become even more difficult to manage.

Additionally, with tenants being able to leave at any time, property marketing becomes more frequent, viewing schedules become erratic, and legal paperwork (notices, evictions) increases.

How Citywide Housing Protects Your Income

With Citywide Housing’s Guaranteed Rent Scheme, landlords no longer need to worry about the unpredictability of periodic tenancies.

Here’s how we ensure your income stays consistent and secure:

• Guaranteed rent every month — no matter if rooms are vacant.
• No void periods — even between tenants, Citywide pays you on time.
• No rent arrears — we handle all tenant payments, ensuring timely receipts.
• Full property management — from repairs and maintenance to tenant relations and compliance, Citywide takes care of everything.

Benefits of Leasing Your Property to Citywide:

• 3–5 year commercial leases, extendable to 10–15 years.
• Guaranteed rent, based on market rates.
• Hands-off management — no dealing with tenants, viewings, or evictions.
• Full compliance — all safety checks, licensing, and maintenance handled by us.

By leasing your property to Citywide Housing, you’re protected from the instability brought by periodic tenancies and guaranteed a consistent income for years to come.

FAQs

How do periodic tenancies affect my rent income?
Periodic tenancies make it harder to predict income because tenants can leave at any time with just two months’ notice.

Can I still increase the rent if my property is on a periodic tenancy?
Yes, you can increase rent once a year using a Section 13 notice, but tenants can challenge it if they believe the increase is unreasonable.

How does guaranteed rent eliminate the risk of periodic tenancies?
With guaranteed rent from Citywide Housing, you always receive consistent payments. Even if your property is vacant, you’re paid on time every month.

Next Steps for Landlords

The changes introduced by the Renters’ Rights Act 2025 make it clear: landlords need to secure their income in the face of increased tenant turnover and void periods.

Leasing your property to Citywide Housing is the smart move for those seeking stability, guaranteed rent, and a hands-off property management experience.

📞 Call 0113 323 0678 or visit citywidehousing.co.uk to learn more about how our Guaranteed Rent Scheme can protect your income and make your property investment hassle-free.