Types of Tenancies and Rental Agreements
Types of tenancies and rental agreements
A tenancy or rental agreement establishes the rules between a landlord and a tenant — but the rules around tenancy agreements are also changing.
In this guide, you’ll learn:
- Why tenancy agreements are important
- The different types of tenancy agreements
- What the Renters Rights Bill means for tenancy agreements
What is a tenancy or rental agreement?
A tenancy or rental agreement is a contract between a landlord and tenant which may be written or verbal. It sets out the terms of a tenancy between the contracting parties. Tenancy agreements are very important documents because they are effectively the rules that the tenant and landlord must abide by during the tenancy. Any dispute that occurs will refer to the terms of the tenancy agreement.
As long as the rent is paid and the rules set out in the agreement are followed, by both parties, the agreement is being met.
Written vs oral tenancy agreements
Most tenancy agreements are written documents. It should be clear what the terms of the tenancy are, with no grey areas if a problem should arise. Written tenancy agreements provide clarity, detail and legal protection for both parties, and help to prevent any misunderstandings.
A tenancy agreement that is agreed verbally between the landlord and tenant, but not written down, is still legally binding. However, in the event of a dispute it becomes much harder to prove anything. You may need to use other forms of communication, like emails or text messages, as evidence.
What different tenancy periods are there and how long is a tenancy?
Fixed term tenancies
A fixed-term tenancy agreement lasts for a set amount of time, typically six or 12 months. There is no maximum length for a fixed-term tenancy but whatever is decided as the length, it must be included on the tenancy agreement, and if longer than three years, signed as a deed.
Common examples of fixed term tenancies are Assured Shorthold Tenancies, and Assured Tenancies. Less well known fixed term tenancies include non-assured shorthold tenancies, excluded tenancies, company lets and regulated tenancies.
You cannot give notice to end a fixed-term tenancy early unless there is a break clause in the agreement. Once the original term ends, the tenancy will become periodic and roll on indefinitely. All types of fixed term tenancies are due to be abolished in 2026 as part of the Renters Rights Bill, and any existing fixed term tenancies will be converted to rolling contract tenancies.
Rolling contract tenancies (also known as a periodic tenancy)
A rolling contract or periodic tenancy is one with no fixed end date unless the landlord or tenant give notice to end it. This must be done in writing. All fixed-term tenancies automatically become periodic after they end unless the tenant writes to the landlord to say that they do not want to stay in the property. The notice that needs to be given for a rolling tenancy is one month for a tenant, and two months for a landlord.
Statutory/rolling (periodic) tenancy
Should you consider a rolling contract tenancy?
Under the Renters Rights Bill, all tenancies will become rolling or periodic, so there will not be an option for a tenant or landlord to choose a different type of tenancy.
How long does a rolling tenancy agreement last?
A rolling contract or periodic tenancy lasts indefinitely. There is no fixed end date, but the tenancy can be ended by either party at any time. If the tenant gives notice, they are legally obliged to pay the agreed rent until the expiry of the notice period.
How can a rolling tenancy be ended legally?
A roll over tenancy agreement can be ended by the tenant by giving one month’s notice (if rent is paid monthly) or four weeks notice (if the rent is paid weekly). The landlord can give two months notice.
Other types of tenancies
There are some other types of tenancies that will be impacted by the Renters Rights Bill. These include:
- Starter tenancy – trial 12-month tenancies, often for new social housing tenants
- Tenancy at will – informal arrangements for short-term occupation
- Common law tenancy – a type of tenancy that derives from common law, and applies to tenancies for students or employees of the Crown, eg. members of the armed forces.
Under the Renters Rights Bill, only common law tenancies will continue to exist. Starter tenancies and tenancies at will are to be abolished.
How will the Renters Rights Bill change tenancy agreements?
The Renters Rights Bill, the most significant lettings legislation for 30 years in the UK, became law in 2025 and will come into force in May 2026. One of its key features is simplifying the types of residential tenancies that are available. Fixed term tenancies, such as 6 or 12-month assured shorthold tenancies, will be replaced by periodic or rolling contract tenancies. Tenants will have more freedom to move, and there will be lower administration costs for landlords, who will not have to renew a tenancy every year.
Rolling contract tenancies will include 2-month notice periods for landlords, with no fixed end date and it will be mandatory to have written tenancy agreements. Landlords will only be able to evict tenants using a Section 8 notice, and will need to give two months notice for a rent increase, and will only be able to do so once a year.
Which tenancy type is better and how to choose the right tenancy for landlords?
There is no type of tenancy that is better than another; some might have more favourable terms for tenants, such as assured tenancies, but this is usually a case of luck rather than judgement, and the result of past circumstances. In fact, few tenants actually get to choose what type of tenancy they are contracted to. It is up to the landlord, and now the standard has to be a periodic or rolling tenancy.
haart can help you let your property
If you are looking to let your property, or have any questions about tenancies or letting, please pop into one of our branches. We can help with a range of property management services, advice and information about the lettings process.