Renewing a tenancy under the new rules: what actually happens now
Renewing a tenancy under the new rules: What actually happens now For landlords who have managed properties under the assured shorthold tenancy framework for any length of time, the annual or biennial renewal conversation was a routine part of the job.
Did you want to offer a new fixed term? Would the tenant prefer to continue rolling monthly? Was this the right moment to review the rent?
That process has now changed. For most private rented sector tenancies, fixed-term renewals have been replaced by a continuing periodic tenancy structure. Understanding what has replaced the old renewal process, and what a landlord actually needs to do when a tenancy reaches what would previously have been its end date, is one of the most practical changes to understand in the post-May 2026 landscape.
What happened on 1st May 2026?
From 1 May 2026, most existing assured shorthold tenancies automatically moved into the new assured periodic tenancy framework. Tenancies where valid possession proceedings had already started may be subject to different transitional rules. For the majority of landlords, however, the change happened automatically and did not require a new tenancy agreement to be signed. The conversion did not create a new tenancy. Landlords did not need to treat the change as a new letting or automatically replace existing written tenancy agreements. Where tenants already had a written agreement, landlords generally did not need to reissue the agreement solely because of the transition.
Landlords were required to provide existing tenants with the government’s Renters’ Rights Act Information Sheet within the relevant timeframe. For written tenancies that existed before 1 May 2026, the Information Sheet explained how the new rules affected the existing tenancy.
What renewal now looks like
When a tenancy reaches the date that would previously have been its fixed-term end point, nothing automatically happens. The tenancy does not expire, and there is no requirement for either party to sign a new fixed-term agreement.
The assured periodic tenancy simply continues from one rental period to the next until it is ended through the appropriate legal process or changed by agreement between the landlord and tenant.
This means there is no traditional renewal conversation in the old sense. Landlords cannot offer a new fixed-term assured shorthold tenancy, as the previous renewal model no longer applies to most private rented sector tenancies.
Instead, landlords should focus on maintaining the tenancy correctly, ensuring compliance obligations remain up to date, and following the correct process if any changes, such as rent adjustments or possession action, are required.
What to do about rent at the point of what used to be renewal
The point at which landlords previously reviewed a tenancy was often when they considered increasing the rent. That process has changed significantly.
Rent review clauses contained in previous tenancy agreements can no longer be relied upon to increase rent after 1 May 2026. Any landlord-led rent increase must follow the statutory Section 13 process. This means clauses linked to CPI, RPI or fixed annual percentage increases no longer provide a valid route for increasing rent under the new framework.
The correct process is to use Form 4A, the prescribed government form for proposing a new rent. The notice must set out the proposed increase and give the tenant at least two months’ notice before the new rent can take effect. Rent can generally only be increased once every 12 months.
Landlords should ensure the notice is completed correctly and served in accordance with the legal requirements. A rent increase cannot simply be introduced through an informal conversation or by relying on an outdated rent review clause.
The practical shift in thinking
The biggest change is not the day-to-day relationship between landlords and tenants. It is the removal of the old renewal point from the tenancy lifecycle.
There is no automatic expiry date, no requirement to negotiate a new fixed term, and no renewal agreement to sign. Instead, the tenancy continues as a periodic arrangement, with landlords managing it through ongoing compliance, communication and the correct statutory processes when changes are needed.
Understanding this shift helps landlords avoid relying on outdated renewal practices and ensures their tenancy management approach reflects the current legal framework.
Talk to our lettings team about managing your tenancies
This article was originally published by BriefYourMarket and is reproduced here with their permission.
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