A Periodic Tenancy Agreement is a formal legal contract for the letting of residential property in England and Wales on a rolling basis, without a fixed end date. Unlike a fixed-term assured shorthold tenancy (AST), which runs for a defined period (typically six or twelve months) and automatically expires on the agreed end date, a periodic tenancy continues from one rental period to the next until either the landlord or the tenant gives valid notice to terminate. The most common form is a monthly periodic tenancy (sometimes called a month-to-month tenancy or rolling tenancy), where the tenancy renews automatically at the end of each calendar month.

In English residential property law, a periodic tenancy may be either a contractual periodic tenancy (where the parties expressly agree to a rolling arrangement from the start, without any initial fixed term) or a statutory periodic tenancy (which arises automatically under section 5(2) of the Housing Act 1988 when a fixed-term AST expires without the parties entering into a new fixed-term agreement). Both types are assured shorthold tenancies within the meaning of Chapter II of Part I of the Housing Act 1988, and both attract the same deposit protection requirements, landlord repair obligations, and statutory possession grounds.

The Periodic Tenancy Agreement documented here is a contractual periodic tenancy: the parties agree from the outset to a rolling month-to-month (or week-to-week or four-weekly) arrangement, with no initial fixed term. This arrangement suits tenants who value flexibility, such as those relocating for work, students, or individuals uncertain about their long-term housing needs. It also suits landlords who wish to retain flexibility to recover possession or sell the property, subject to the applicable statutory notice requirements.

The regulatory framework governing periodic tenancies in England and Wales is comprehensive. The Housing Act 1988 provides the statutory framework for ASTs and the grounds for possession. The Housing Act 2004 imposes deposit protection requirements. The Deregulation Act 2015 introduced conditions that must be met before a valid section 21 notice can be served. The Tenant Fees Act 2019 prohibits landlords and letting agents from charging tenants any fee in connection with the tenancy (other than permitted payments). The Homes (Fitness for Human Habitation) Act 2018 requires the property to be fit for human habitation throughout the tenancy. The Renters’ Rights Act 2025, taking effect on 1 May 2026, will abolish section 21 evictions and convert all ASTs to assured periodic tenancies, making periodic tenancies the universal form of residential letting in England and Wales.

This Periodic Tenancy Agreement complies with all current regulatory requirements and is designed to be fair to both landlord and tenant, consistent with the government’s Model Tenancy Agreement.

A Periodic Tenancy Agreement is needed in England and Wales whenever a landlord and tenant wish to enter into a residential tenancy without committing to a fixed term. This type of agreement is appropriate in a wide range of situations.

Tenants who are uncertain about their long-term plans are a common group. A person who has taken a temporary job in a new city, a student who is not sure whether they will remain in the area, or someone going through a relationship breakdown or house sale will typically prefer a rolling tenancy that can be ended at relatively short notice (usually one month) without financial penalty.

Landlords who are planning to sell their property, who are waiting for planning permission to develop it, or who anticipate needing to occupy it themselves in the near future may also prefer a periodic tenancy, because they can give notice to recover possession (subject to applicable statutory notice requirements) without waiting for a fixed term to expire. From 1 May 2026, under the Renters’ Rights Act 2025, all tenancies will be periodic by statute; periodic tenancy agreements will therefore become the standard document for new residential lettings in England and Wales.

A periodic tenancy is also appropriate where the parties are renewing a prior fixed-term AST but do not wish to commit to another fixed term: instead of allowing the tenancy to continue as a statutory periodic tenancy under section 5(2) of the Housing Act 1988 (which happens automatically without a new agreement), they may choose to document the ongoing arrangements in a new contractual periodic tenancy agreement.

First-time landlords and tenants may find a periodic tenancy agreement a good way to trial an arrangement before committing to a longer fixed term. A three- to six-month periodic tenancy can give both parties time to assess whether the relationship works before signing a twelve-month fixed term.

Letting agents managing properties on behalf of landlords should note that under the Consumer Rights Act 2015, all terms in the tenancy agreement must be fair and in plain, intelligible language. Any term that departs significantly from a term in the government’s Model Tenancy Agreement should be carefully considered for compliance with the Act.

A well-drafted Periodic Tenancy Agreement for use in England and Wales must address several key provisions to ensure legal validity, practical effectiveness, and compliance with the extensive regulatory framework governing residential lettings.

Party identification is essential. The landlord must be identified by full legal name, with an address in England or Wales at which notices may be served, as required by section 48 of the Landlord and Tenant Act 1987. Failure to comply with section 48 means that rent is not lawfully due until the obligation is satisfied, making this one of the most important requirements in a periodic tenancy agreement. All joint tenants must be named; each joint tenant is jointly and severally liable for the rent and obligations under the agreement.

The commencement date and rental period are fundamental. A monthly periodic tenancy commences on a specific date and renews automatically at the end of each calendar month. The agreement should specify the rental period clearly (monthly, weekly, or four-weekly) because this determines the minimum notice period required for termination by either party.

The rent clause must state the amount in pounds sterling, the due date (typically the same day each month as the commencement date), and the payment method. The Tenant Fees Act 2019 caps interest on late payments at 3% per annum above the Bank of England base rate. Any charge above this cap is a prohibited payment.

Deposit provisions must comply with sections 212 to 215 of the Housing Act 2004. The agreement should confirm the deposit amount (subject to the Tenant Fees Act 2019 cap), the government-approved protection scheme, and the landlord’s obligation to protect the deposit and serve the prescribed information within 30 days of receipt.

The landlord’s statutory obligations should be set out: the covenant for quiet enjoyment, repair obligations under section 11 of the Landlord and Tenant Act 1985, the Gas Safety Certificate requirement, the EICR requirement, the EPC requirement, and the obligation to provide the How to Rent guide. These are not merely best practice; breach of many of them carries civil and criminal sanctions and may prevent the landlord from serving a valid possession notice.

The tenant’s obligations should cover rent payment, proper use of the property, care and maintenance obligations, restrictions on alterations, and compliance with the smoking and pets policies. The subletting clause must address whether the tenant may take in lodgers or sublet, and on what terms.

The termination clause must set out the notice periods for both parties. The tenant’s notice period is typically one calendar month; the landlord’s notice period depends on the applicable statutory regime and the ground for possession relied upon. From 1 May 2026, the Renters’ Rights Act 2025 will require landlords to use section 8 grounds for all possession claims, with notice periods ranging from two weeks to four months depending on the ground.

A governing law clause confirming England and Wales as the applicable jurisdiction, an exclusion of the Contracts (Rights of Third Parties) Act 1999, and a severability clause round out the essential terms of a robust and compliant Periodic Tenancy Agreement.