Deciding on the length of tenancy

For private rentals in England, the most common tenancy type is an Assured Shorthold Tenancy (AST). These typically start as fixed-term agreements, where the duration is agreed upfront, usually between 6 months and 3 years but can be up to 7 years if both landlord and tenant agree.

An AST can end at the fixed term or via a break clause included in the agreement. To regain possession, a landlord must serve a Section 21 Notice and may need a court order. Currently, landlords must give tenants at least two months’ notice, which cannot be served until after the first four months of the tenancy and only in line with a break clause or at the end of the fixed term. If a tenant breaches the agreement (e.g., rent arrears), the landlord can apply for possession under the Grounds for Possession in the Housing Act 1988.

Periodic tenancies

When a fixed term ends, the tenancy may:

Renew for another fixed term
End with tenants moving out
Convert to a periodic tenancy, continuing month-to-month until ended by either party

Ending a periodic tenancy still requires serving a Section 21 Notice or a notice under the Grounds for Possession.

Fixed-term tenancies

Fixed terms can be any length up to seven years. Longer tenancies offer:

Landlords: Stability, reduced void periods, and consistent rental income.
Tenants: Security and time to settle

Consider your target tenant when deciding the term. Families often prefer longer agreements. Tenancies over three years must be signed as a Deed.

Rent increases

Rent cannot increase during a fixed term unless agreed in the tenancy agreement. At renewal, a letting agent can negotiate rent increases, usually starting discussions three months before the term ends. This gives tenants time to decide and landlords time to find new tenants if needed.

Short let rentals

Short lets (a few weeks to six months) often command higher rents and suit tenants needing temporary accommodation. They can be lucrative but involve: