A Tenancy Renewal Agreement is a legal document used in England and Wales to formally extend or continue an existing residential tenancy, most commonly an assured shorthold tenancy (AST) granted under the Housing Act 1988. When the fixed term of an AST approaches its expiry, the landlord and tenant face a choice: they may enter into a new fixed-term agreement, allow the tenancy to become a statutory periodic tenancy under section 5(2) of the Housing Act 1988, or the tenant may vacate the property. A Tenancy Renewal Agreement documents whichever option the parties choose, creating a clear written record of the terms that will govern the ongoing occupation of the property.

The assured shorthold tenancy has been the default form of residential tenancy in England and Wales since the Housing Act 1996 amended the original 1988 Act. Under this framework, any tenancy granted on or after 28 February 1997 is automatically an AST unless the landlord specifically grants an assured tenancy. When the fixed term expires, the statutory periodic tenancy that arises carries over all the terms of the original agreement, but the parties often prefer to document the continuation formally, particularly where the rent is being adjusted or new terms are being introduced.

A Tenancy Renewal Agreement is distinct from a tenancy variation (which amends specific terms of an existing agreement) and from a surrender and re-grant (which terminates one tenancy and creates a new one). In a renewal, the new or continued tenancy is a direct continuation of the original relationship, and the deposit held under the original agreement typically carries over without the need for re-protection, although the prescribed information must be re-served to the tenant within 30 days of the renewal in accordance with the Housing Act 2004. The Tenant Fees Act 2019 prohibits landlords from charging any fee for the renewal of a tenancy, meaning the renewal must be processed without cost to the tenant.

Importantly, the Renters' Rights Act 2025, which takes effect on 1 May 2026, will fundamentally reshape the residential tenancy landscape in England and Wales by abolishing section 21 no-fault evictions and converting all ASTs to periodic tenancies. Until that date, landlords may still grant new fixed-term ASTs through a renewal agreement.

A Tenancy Renewal Agreement is needed whenever a landlord and tenant in England or Wales wish to formally continue their residential tenancy arrangement beyond the original fixed term. The most common scenario is where a six-month or twelve-month AST is approaching its expiry and both parties want to extend the arrangement for a further fixed period. Without a written renewal, the tenancy will simply become a statutory periodic tenancy under section 5(2) of the Housing Act 1988, which may not suit either party's preferences.

Landlords frequently prefer to renew with a new fixed term because it provides certainty of rental income for the agreed period and prevents the tenant from giving just one month's notice to vacate. Tenants may prefer a new fixed term because it protects them from rent increases or eviction during the term (subject to any break clause). Alternatively, some parties prefer to formalise a periodic tenancy in writing to confirm any agreed changes to rent, occupant permissions, or property conditions.

A Tenancy Renewal Agreement is particularly important where the rent is being adjusted. While a landlord can increase the rent during a periodic tenancy using the section 13 procedure under the Housing Act 1988 (giving two months' notice on a prescribed form), a mutually agreed rent change documented in a renewal agreement avoids the formalities and potential disputes of the statutory procedure. The tenant's signed agreement to the new rent provides clear contractual authority for the change.

Other common triggers for a renewal include the addition or removal of a joint tenant, changes to pet or smoking policies, updates to garden maintenance responsibilities, or the need to address issues that arose during the original tenancy. A renewal agreement can also be useful for documenting the landlord's compliance with mandatory statutory requirements, including deposit protection under the Housing Act 2004, the provision of an Energy Performance Certificate under the Energy Efficiency Regulations 2015, a Gas Safety Certificate under the Gas Safety Regulations 1998, an Electrical Installation Condition Report under the Electrical Safety Regulations 2020, and the current version of the How to Rent guide as required by the Deregulation Act 2015.

Letting agents acting on behalf of landlords should note that under the Consumer Rights Act 2015, all terms in the renewal agreement must be fair and in plain language, and any fees charged to the landlord (not the tenant) must be transparent and clearly disclosed.

A well-drafted Tenancy Renewal Agreement for use in England and Wales must address several critical elements to ensure legal validity and protect both the landlord and the tenant.

The identification of the parties must match the details on the original tenancy agreement. The landlord should be identified by full legal name and correspondence address. If the landlord is a company, the Companies House registration number should be included. The tenant must also be identified by full legal name, and all joint tenants named on the original agreement must be included in the renewal. The property must be described with its full postal address, including postcode.

The renewal term clause is the core of the agreement. For a fixed-term renewal, it must state the precise start and end dates of the new term and confirm that the tenancy is an AST within the meaning of the Housing Act 1988. For a periodic tenancy, it must confirm that the tenancy continues as a statutory periodic tenancy under section 5(2) of the Housing Act 1988, and specify the rent period (typically monthly). In both cases, the agreement should reference the notice periods applicable for termination by either party.

The rent clause must state the monthly rent in pounds sterling, the day of the month on which it is due, and the method of payment. Where the rent has changed from the original tenancy, the agreement should record the previous rent and the new agreed amount to create a clear audit trail. The Tenant Fees Act 2019 prohibits any charge to the tenant in connection with the renewal.

The deposit clause must confirm the amount of deposit held, the government-approved scheme in which it is protected (DPS, MyDeposits, or TDS), and the landlord's obligation to re-serve the prescribed information within 30 days of the renewal commencing. The agreement should confirm that the deposit complies with the statutory cap under the Tenant Fees Act 2019.

A variation clause should set out any amendments to the terms of the original agreement, while a confirmation clause should state that all other terms of the original agreement continue in full force. A break clause, if included, must specify the notice period and conditions for early termination. The agreement should conclude with a governing law clause specifying the laws of England and Wales, and an exclusion of the Contracts (Rights of Third Parties) Act 1999.