New Periodic Tenancy Agreement Issued by Propertymark

Why It Matters

The shift to periodic tenancies reshapes landlord‑tenant relationships, demanding immediate compliance from agents and altering revenue and eviction strategies across the residential rental market.

Key Takeaways

• Fixed-term ASTs replaced by rolling periodic tenancies
• Tenants can end tenancy with two months’ notice
• Section 21 no‑fault evictions eliminated
• Rent increases limited to once per year

Pulse Analysis

The Renters’ Rights Act represents the most significant overhaul of England’s private rental sector in decades, moving away from the traditional fixed‑term Assured Shorthold Tenancy toward a continuous, periodic framework. By mandating a rolling tenancy model, the law aims to enhance tenant flexibility while standardising contractual expectations. This transition reflects broader policy goals of stabilising the rental market, reducing turnover costs for landlords, and aligning tenancy practices with modern mobility trends among renters.

For letting agents, the introduction of Propertymark’s Assured Periodic Tenancy agreement is both a compliance tool and a strategic imperative. The new template embeds mandatory clauses such as the two‑month termination notice, the prohibition of Section 21 no‑fault evictions, and the annual cap on rent hikes, thereby shielding agents from potential legal challenges. Additionally, agents must now provide written key‑term statements and information sheets by 31 May, and limit advance rent collections to a single month. These operational adjustments require updates to onboarding processes, staff training, and document management systems, prompting firms to invest in compliance technology and legal counsel.

Industry‑wide, the Act is poised to shift power dynamics, granting tenants greater exit flexibility while compelling landlords to adopt more transparent rent‑setting practices. The ban on rent bidding and the cap on annual increases could temper rent inflation in high‑demand areas, potentially moderating price growth for new entrants. Over the longer term, the periodic tenancy model may encourage longer‑term occupancy, reducing vacancy cycles and fostering more stable cash flows for property owners. Stakeholders who adapt swiftly—leveraging tools like Propertymark’s APT agreement—are likely to gain a competitive edge in a market that is rapidly redefining its legal and economic foundations.