What happens to my fixed term contract once the Renters' Rights Bill passes?

If you’re a landlord in the Bookham, Leatherhead or Guildford area, you may be wondering how the upcoming Renters' Rights Bill will affect your existing tenancy agreements. One of the most significant changes under the new legislation is the abolition of fixed-term Assured Shorthold Tenancies (ASTs). This change will have a direct impact on how you manage your properties and your relationships with tenants.

Key Change: The End of Fixed-Term Tenancies

Currently, most landlords use fixed-term ASTs - typically for 6,12,24 months. At the end of that term, you can either renew the tenancy, allow it to continue as a periodic tenancy, or serve notice under Section 21 to regain possession.

Under the new Bill, this will change:

• All tenancies will become periodic by default from the legislation's commencement date.

• Tenancies will be open-ended, with no set end date.

• Tenants will be free to leave at any time, provided they give at least two months’ notice.

• Landlords can only end a tenancy for specific legal reasons, which will be clearly set out in the legislation.

• Offering a fixed-term contract will become a legal offence, with penalties of up to £7,000.

• Tenancies longer than 7 years are excluded from this rule and will not fall under the new legislation.

How to Prepare for the Changes

While the Renters' Rights Bill is still progressing through Parliament, you can take steps now to prepare:

• Review all your existing tenancy agreements and note when fixed terms are due to expire.

• Familiarise yourself with the new legal grounds for possession, which include reasons such as selling the property or needing it for a family member.

• Build and maintain strong communication with your tenants. With more flexibility to leave, good tenant relationships can help reduce turnover.

• Seek legal advice to ensure your tenancy documentation and procedures are fully compliant with the upcoming changes.

Stay Informed, Stay Compliant

The Renters’ Rights Bill marks a major shift in the private rental sector. As a landlord, staying informed is essential to ensure a smooth transition and protect your investments.

If you're based in Bookham, Leatherhead, Guildford, or surrounding areas, we’re here to help. We offer clear, practical advice to help you navigate these changes with confidence.

For updates and expert insights, check out our blog or get in touch directly:

📞 01372 456 804
📧 info@pwdproperty.co.uk