What is Fixed-Term Tenancy?

Full Definition

A fixed-term tenancy is an assured shorthold tenancy granted for a specific, agreed length of time -- commonly six or twelve months, though longer terms are used too -- during which neither party can normally end the tenancy early unless the agreement contains a break clause allowing either the landlord or tenant to terminate on notice after a minimum period. During the fixed term, the rent and other terms are locked in and cannot usually be changed unilaterally, which gives both sides certainty: the tenant has security of tenure for the length of the term (subject to grounds such as rent arrears or breach of the agreement), and the landlord has a guaranteed period of let income. When a fixed term expires, if the tenant stays on without a new agreement being signed, the tenancy automatically converts into a statutory periodic tenancy on the same terms, rolling month to month (or in line with the rent period) until either party serves the correct notice to end it. Landlords typically use the end of a fixed term to review the rent, renew for a further fixed period, or serve notice under Section 21 or Section 8 if they want possession. Proposed renters' rights reforms are expected to remove fixed terms for most assured tenancies in favour of rolling periodic tenancies, so always check the current position before assuming a fixed term applies.

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