Landlord Fixed-Term Tenancy Guide 2026 — RRA 2025 Abolition, Transitional Provisions, Break Clauses and Early Termination

Fixed-term ASTs before RRA 2025 — how they worked and what happens at expiry

The pre-RRA 2025 fixed-term regime remains relevant for all fixed-term ASTs granted before 1 May 2026. Key rules under the pre-RRA 2025 position:

• Fixed-term AST structure (pre-RRA 2025): A fixed-term AST is a tenancy granted for a defined period — the most common terms were 6 months (the practical minimum given the section 21 timing rules) and 12 months. During the fixed term: (a) the tenant is bound to pay rent for the entire period and cannot unilaterally end the tenancy early unless a break clause permits it; (b) the landlord cannot end the tenancy before the fixed term expires except by serving a section 8 notice based on one of the statutory grounds (e.g. rent arrears — Ground 8; breach of covenant — Ground 12; anti-social behaviour — Ground 14); section 21 notices served during a fixed term became effective only on or after the last day of the fixed period. At the end of the fixed term: if neither party serves a valid notice, the tenancy automatically becomes a statutory periodic tenancy under HA 1988 s.5(2). The periodic tenancy: (a) has the same terms as the original fixed-term AST except those inconsistent with a periodic tenancy; (b) is a monthly tenancy if rent was paid monthly (or weekly if weekly, etc.); (c) can be ended by section 21 notice (2 months' notice) or section 8 notice on one of the statutory grounds. Renewal as a further fixed-term: a new fixed-term can be agreed in writing before expiry of the original term (creating a new fixed-term AST for a further defined period); this was common landlord practice to retain certainty before RRA 2025. RRA 2025 effect: no new fixed-term ASTs can be granted after 1 May 2026 — so this renewal option disappears for new agreements; existing pre-1 May 2026 fixed terms are not affected until they expire
• Break clauses in fixed-term tenancies — law and practice: A break clause is a contractual right allowing one or both parties to end the tenancy before the expiry of the fixed term. Key principles for break clauses in residential fixed-term ASTs: (a) Mutuality: courts have consistently required that break clauses in residential tenancies be mutual — i.e. available to both landlord and tenant, or independently to either. A break clause available only to the landlord is likely to be found unfair under the Unfair Terms in Consumer Contracts Regulations 1999 (now CRA 2015) and unenforceable; (b) Minimum term: break clauses must not allow termination within the first 6 months of the tenancy (for England and Wales ASTs). A break clause allowing the landlord to terminate after 4 months is unenforceable against the tenant — the tenant has a statutory right to remain for a minimum of 6 months under HA 1988. For Wales (under RHWA 2016 occupation contracts) the minimum period is 6 months from occupation commencement; (c) Proper notice: the break clause must specify the required notice period — typically 2 months for landlord exercise and 1 month for tenant exercise. A landlord exercising a break clause must serve notice in the contractually required form and within the contractually required window; (d) Conditions precedent: break clauses often contain conditions (e.g. 'provided the tenant has paid all rent due') — courts have strictly construed these conditions; failure to comply with a condition can render the break notice ineffective. Post-RRA 2025 in England: break clauses in existing fixed-term tenancies already in place before 1 May 2026 can continue to be used for those tenancies until they expire; but no new break clauses can be created as part of new fixed-term tenancies (which are prohibited)

RRA 2025 transitional provisions, early termination liability and devolved positions

The RRA 2025 transitional arrangements and the rules for early termination apply alongside the devolved tenancy regimes in Wales, Scotland and Northern Ireland:

• RRA 2025 transitional provisions (England from 1 May 2026): The Renters' Rights Act 2025 abolishes fixed-term tenancies in England from 1 May 2026. Transitional rules: (a) Fixed-term ASTs already in place on 1 May 2026 continue to run until the end of their fixed term — the RRA 2025 does not retrospectively convert these into periodic tenancies; (b) On expiry of the fixed term (whether by effluxion of time or exercise of a break clause), the tenancy automatically transitions to a periodic tenancy under the new RRA 2025 periodic regime — not the old HA 1988 periodic regime; (c) Renewal as a further fixed-term is not permitted after 1 May 2026 — if the parties want to continue the tenancy, it must continue as a periodic tenancy; (d) The landlord cannot serve a new section 21 notice at any point after 1 May 2026 even for pre-existing tenancies — section 21 is abolished from 1 May 2026 for all ASTs, whether existing or new; (e) Possession grounds under the new mandatory and discretionary regime (RRA 2025 Sch.2 as amended) apply from 1 May 2026. PRS Property Portal: from the introduction of the portal (expected late 2026), landlords must register before granting a new periodic tenancy — registration replaces the old section 21 pre-condition documentation requirements. Practical planning: landlords with fixed terms expiring after 1 May 2026 should review their tenancy agreements now; the expiry of a fixed term is no longer an opportunity to regain possession without grounds — possession after 1 May 2026 (even from a transitional fixed term) requires a valid statutory ground
• Early termination by tenant, landlord duty to mitigate and devolved positions: Early termination during a fixed term: a tenant who leaves before the end of the fixed term remains liable for rent until the end of the fixed term (or until the landlord re-lets the property and a new tenancy commences, or until a new tenant is found through the landlord's own efforts). Landlord's duty to mitigate: while the tenant is liable for rent during the unexpired fixed term, a landlord cannot simply sit on an empty property and accumulate a damages claim. The landlord has a duty to take reasonable steps to mitigate their losses — including actively marketing the property, conducting viewings, and re-letting as quickly as reasonably practicable. The landlord can deduct from the tenant's damages claim: (a) the landlord's reasonable re-letting costs (agent fees; advertising); (b) any period of unavoidable void between the tenant's departure and a replacement tenancy. Practical route for early termination: agree a surrender of the tenancy in writing, with a financial settlement — this is the cleanest route for both parties and avoids the legal uncertainty of a contested damages claim. Devolved positions: (a) Wales — occupation contracts under RHWA 2016 (from 1 December 2022): all new occupation contracts are already periodic from the outset; no fixed-term occupation contracts exist under RHWA 2016; the English transition has already effectively happened in Wales; section 21 equivalent (section 173 notice, minimum 6 months) applies to Welsh periodic contracts; (b) Scotland — PRT under PH(T)(S)A 2016 (from 1 December 2017): all new private residential tenancies in Scotland are already periodic from the outset; fixed-term tenancies were abolished for new tenancies in Scotland in December 2017; existing short assured tenancies (granted before 1 December 2017) have now expired and the regime is fully periodic; (c) Northern Ireland — fixed-term tenancies remain available under the Private Tenancies (NI) Order 2006; no equivalent of RRA 2025 in NI; fixed-term tenancies in NI are governed by the 2006 Order

Frequently asked questions