Farewell Fixed Terms

Farewell Fixed Terms

The rental market in England is about to change more in a matter of months than it has in the last 30 years.

And for many landlords, the biggest shift won’t just be legal — it will be emotional, operational, and structural.

Because from 1 May 2026, fixed-term assured shorthold tenancies (ASTs) as we know them will disappear.

In their place, we move into a new world of Assured Periodic Tenancies (APTs).

And whether you agree with it or not, this change is happening.

A government decision — not an industry one

It is important to be clear: this is not an agent-led change, and it is not a landlord-led change.

It is a government decision, developed over several years and across two administrations.

The timeline looks like this:

• The Conservative government formally introduced the Renters (Reform) Bill to Parliament on 17 May 2023
• It originally formed part of the 2019 manifesto, promising to abolish “no-fault” (Section 21) evictions
• This was preceded by a white paper in June 2022
• It reached second reading in October 2023 but stalled ahead of the 2024 election

Following the 2024 general election, the new government introduced the Renters’ Rights Act 2025, which received Royal Assent on 27 October 2025.

This Act carries forward many of the original proposals, with the first phase of reforms due to begin on 1 May 2026.

In simple terms:
This is not a sudden idea. It is a long political journey that has now reached implementation.

The end of ASTs as we know them

For decades, the AST has been the backbone of the private rented sector.

It was introduced under the Housing Act 1988, replacing the older Rent Act system, which had given tenants far greater security — often at the expense of landlord control.

The AST model restored balance:

• Landlords gained clearer possession rights
• Tenants gained regulated protection
• Section 21 provided a “no-fault” route to regain possession

That structure is now being removed.

From 1 May 2026:

• Fixed terms will no longer operate in the same way
• Tenancies will become periodic by default
• Section 21 will be abolished
• And possession will rely more heavily on grounds-based Section 8 processes

What the government is trying to achieve

At its core, the reform is about shifting the rental sector from:

“property as an asset system” → to “property as a home system”

The intention is to:

• Increase tenant security
• Reduce perceived unfair evictions
• Improve housing stability

However, this comes alongside wider pressures:

• Declining social housing availability
• Increased reliance on the private rented sector
• Rising demand and limited supply

And this is where debate begins.

Because policy ambition and operational reality are not always aligned.

Section 21 — a controversial but important tool

Section 21 has often been labelled a “no fault eviction”.

In practice, many landlords and agents view it differently:
a necessary mechanism for regaining possession without conflict where appropriate.

Used responsibly, it has provided:

• Certainty
• Efficiency
• Reduced court burden
• A non-adversarial route to possession

Without it, possession is now fully reliant on Section 8 grounds — which require proof, evidence, and ultimately court involvement.

The court system reality

This is where concern begins to sharpen.

Even today, the system is under strain:

• Around 31% of possession claims are accelerated claims, previously used for Section 21 routes
• Once abolished, this becomes an immediate increase in court hearings
• Current possession timelines in many areas (including Southampton, Bournemouth & Poole) are already 8–12 weeks to hearing
• Moving forward, realistic expectations are 12 weeks minimum, often longer

There were approximately 23,000 possession claims in the last quarter of 2025, with volumes steadily increasing by around 3–5%.

And yet:

• There is no confirmed court capacity expansion plan
• Recruiting and training a new judge can take up to 18 months!
• No confirmed reform to CPR procedures to streamline possession claims further

As one courts minister has indicated, the system is largely operating on a “business as usual” basis.

That is a significant concern when demand is rising.

Wales and Scotland — lessons already learned

England is not the first part of the UK to test stronger tenant protections.

Scotland introduced similar reforms over the last decade, replacing fixed terms with a more tenant-protective system.

The outcome has been mixed:

• The court system struggled with demand
• A new tribunal structure was introduced
• Even then, delays and backlogs became a persistent issue

Wales has also moved towards more secure occupation models, again increasing pressure on enforcement and court processes.

The key lesson?
Reform changes behaviour faster than infrastructure can adapt.

What this means for landlords

There is a growing risk of structural imbalance:

• More tenants in the system
• Fewer possession routes
• No proportional increase in court capacity
• Increased regulatory exposure

At the same time, enforcement has become more serious:

• Civil penalties: £7,000 to £40,000+
• Criminal prosecution risk for serious breaches
• Joint and several liability (landlord + agent exposure)
• Corporate and director liability
• Rent repayment orders (now typically up to 1 year, previously up to 2 years in some cases)

Even more importantly:

A landlord can be penalised even if they did not directly know about a breach — if their agent did.

That makes choosing the right agent more important than ever.

Agents now carry more responsibility than ever

This is often misunderstood.

Agents are not just intermediaries anymore — they are compliance gatekeepers.

If an agent gets something wrong:

• The landlord is still exposed
• Penalties can still apply
• Liability can extend across both parties

This is why reviewing your Terms of Business matters more now than at any point in the last decade.

Even today, there is no fully settled “Renters’ Rights Act compliant” standard form across the industry.

So landlords need to ask:

• Does my agent actually protect me?
• Or just process paperwork?

What about homelessness and housing pressure?

One of the most debated consequences of Section 21 reform is housing flow.

Current data highlights:

• Around 31% of homelessness presentations involve private rented sector loss
• The government spends over £2 billion annually on emergency accommodation
• In London, approximately 1 in 21 children are currently in temporary accommodation or homeless settings

The concern raised by many professionals is not about intent — but about capacity.

If possession routes slow down, and housing supply remains constrained, pressure does not disappear. It shifts elsewhere.

A market under strain — not collapse

It is important to stay balanced.

This is not the end of the private rented sector.

But it is a rebalancing of power, process, and responsibility.

Good landlords will still succeed.
Professional agents will still thrive.
Well-managed properties will still perform.

However:

• Margins for error are shrinking
• Compliance expectations are increasing
• Processes are becoming more legalistic

What happens next (timeline)

Key implementation milestones:

• 1 May 2026 – Abolition of Section 21 and transition to APT system begins
• 31 May 2026 – Deadline to provide updated written statements of terms to tenants
• 31 July 2026 – Final window for possession proceedings based on pre-existing Section 21 notices

After this point:

• All new cases move into the new system
• Written compliance documentation becomes mandatory
• Failure to provide correct documentation may carry penalties (up to £7,000 in some cases)

Final thoughts — where we stand

We don’t write this to alarm people.

We write it to prepare them.

Because in every period of reform, there are two types of landlords:

• Those who react late
• And those who adapt early

Our role is not to judge the direction of policy.
Our role is to help landlords operate successfully within it.

That means:

• Staying compliant
• Reducing risk
• Structuring tenancies correctly
• And choosing the right professional support

The takeaway

Fixed terms are ending.
Section 21 is going.
The system is changing permanently.

But property still works — when it is managed properly.

And in a more complex regulatory environment, the difference between success and stress will come down to one thing:

Who is advising you.