Are Fixed-Term Tenancies Dead? What the New Renters’ Rights Act Means for Every Preston Landlord

Thursday, 2 July 2026

The landscape for landlords in Preston changed forever on 1 May 2026. If you own a rental property, the rules you have followed for decades regarding 6-month or 12-month tenancies are now obsolete. The Renters’ Rights Act has officially abolished fixed-term assured tenancies, replacing them with a single system of rolling periodic tenancies.

At Reid & Co Property Group, we are seeing many landlords across Lancashire feel uncertain about what this means for their security and cash flow. This guide breaks down exactly what happened, why "no-fault" evictions are a thing of the past, and how you must adapt your property management strategy to stay compliant and profitable.

The End of the Fixed Term: What Just Happened?

As of 1 May 2026, the traditional Assured Shorthold Tenancy (AST) is gone. In its place, every new and existing tenancy in England has automatically converted into an assured periodic tenancy.

What this means for your current tenants:

• Existing contracts are nullified: Even if you signed a 12-month agreement last December, the "fixed" end date is no longer legally binding.
• The rolling cycle begins: Your tenancies now run on a month-to-month or week-to-week basis, depending on how frequently rent is paid.
• No new fixed terms allowed: Attempting to issue a new contract with a fixed end date is now illegal. Doing so can result in local authority enforcement and fines of up to £7,000.

For many letting agents in Preston, this is the biggest shift in a generation. You can no longer bank on a tenant being locked in for a full year.

Goodbye Section 21: The New Eviction Rules

The headline change of the Renters’ Rights Act is the total abolition of Section 21 "no-fault" evictions. You can no longer ask a tenant to leave simply because their contract ended or because you want a fresh start.

How you recover possession now:

To regain control of your property, you must now rely exclusively on Section 8 grounds. The Act has updated these grounds to ensure landlords still have a path to possession in legitimate circumstances:

1. Selling the property: If you intend to sell, you can now use a mandatory ground to regain possession. However, you generally cannot use this ground within the first few months of a new tenancy.
2. Moving back in: If you or a close family member needs to live in the property, this remains a valid reason to end the tenancy.
3. Rent arrears: This remains a mandatory ground, but the threshold has increased. You must now show at least three months of arrears (up from two) and provide the tenant with four weeks' notice before starting court proceedings.
4. Serious breach of contract: Anti-social behavior or significant damage to the property still allows for eviction, though the evidentiary bar remains high.

Navigate these changes carefully. Without a valid Section 8 ground, a tenant has the right to stay in your property indefinitely. This makes professional property management in Preston more critical than ever to ensure all notices are served correctly and grounds are documented thoroughly.

Notice Periods: The Power Shifts to the Tenant

Under the new rolling system, tenants have gained significant flexibility.

The 2-Month Rule

A tenant can now give you notice to leave at any time. They are no longer "locked in" until the end of a six-month term.

• Tenant Notice: Tenants must provide at least two months' written notice.
• No "Minimum Term": A tenant could technically move in on the 1st of the month and give notice on the 2nd.

This change means your vacancy rates could fluctuate more than they used to. To combat this, you must ensure your property is finished to a high standard to encourage long-term stays, even without a legal lock-in period.

Rent Increases and Financial Changes

The Act doesn't just change how tenancies end; it changes how they are paid for.

• Rent Frequency: Rent periods cannot exceed one calendar month. You can no longer ask for six months' rent in advance to secure a "deal."
• Rent Increases: You are limited to one rent increase per year. This must be done via a formal Section 13 notice. The days of "market rent" clauses in contracts are over; any increase must reflect the actual market value, or the tenant can challenge it at a tribunal.
• Information Sheets: By 31 May 2026, you should have provided every tenant with the official Renters’ Rights Act Information Sheet. If you haven't done this yet, do it today.

Immediate Action Plan for Preston Landlords

Do not wait for a dispute to happen before you update your processes. Follow these steps to protect your investment:

1. Audit your paperwork: Review every active tenancy. Ensure you are no longer using old AST templates for new renewals.
2. Issue the Written Statement of Terms: While you don't need a "new" contract for existing tenants, you should provide a written statement that confirms the new periodic terms.
3. Check your insurance: Some landlord insurance policies were built around fixed-term ASTs. Call your provider to ensure your cover remains valid under the new assured periodic system.
4. Review your arrears process: Since the mandatory ground for arrears has moved to three months, you need a more proactive rent collection system. Waiting until month two to start a conversation is now too late.

How Reid & Co Property Group Navigates the Change

Managing a rental property in Preston is no longer a "set and forget" task. The legal risks of getting a notice wrong or using the wrong contract template are now too high for most casual landlords to manage alone.

At Reid & Co, we have overhauled our entire management suite to align with the Renters’ Rights Act. We provide:

• Compliant Documentation: We use the latest rolling periodic agreements that protect your rights under the new Section 8 grounds.
• Proactive Tenant Relations: Because tenants can leave with two months' notice, we focus on high-touch communication to identify "flight risks" before they give notice.
• Expert Possession Handling: If you need to sell or move back in, we manage the transition and ensure all statutory notices are served with 100% accuracy.

If you are worried about how these changes affect your portfolio, read our deeper dive into the Renters' Rights Act or contact us today for a portfolio review.

Secure your investment today

Don't let the end of fixed-term tenancies catch you off guard. The Preston market is still thriving, but only for those who play by the new rules.

Call Reid & Co Property Group on 01772 284606 or visit our Landlords page to see how we can take the stress out of the new legislation.