When it comes to residential lettings in 2025, landlords across London and the UK are increasingly questioning whether a fixed-term tenancy or a rolling tenancy (periodic tenancy) offers the best value and control in the current legal and market landscape.
As a trusted estate agency with in-depth knowledge of landlord-tenant law and a proven track record of protecting landlord interests, we’re here to help you choose the proper tenancy structure for your investment.
Below, we explore the pros and cons of both tenancy types and share key insights tailored to the UK rental market in 2025.
What Is a Fixed-Term Tenancy Agreement?
A fixed-term tenancy is a rental agreement that runs for a specified period—commonly 6 or 12 months.
Once signed, both landlord and tenant are legally bound to the terms until the end date unless a break clause is included.
Advantages of Fixed-Term Tenancies for Landlords
- Guaranteed Income: Locking tenants in for a set term ensures you have stable rental income for the agreed period.
- Easier Planning: You can plan mortgage payments, maintenance schedules, and future sales with certainty.
- Control over Rent Reviews: Rent can only be increased during the fixed term if a rent review clause is built into the agreement or a new fixed term is signed after expiry.
- Tenant Commitment: Fixed-term tenants are less likely to leave unexpectedly, reducing void periods and marketing costs.
Potential Drawbacks
- Less Flexibility: If your circumstances change, you can’t regain possession until the term ends—unless there’s a break clause or tenant breach.
- Challenging Tenants: You’re stuck with problematic tenants unless they violate the terms of the tenancy.
What Is a Rolling (Periodic) Tenancy Agreement?
A rolling tenancy, often called a periodic tenancy, continues month to month or week to week once a fixed term ends, or it can be set up from the start as periodic.
Advantages of Rolling Tenancies for Landlords
- Greater Flexibility: You can regain possession faster with just two months’ notice via Section 21 (as of current legislation).
- Short-Term Coverage: Ideal if you plan to sell, renovate, or move back into the property soon.
- Rental Increases: You can serve a Section 13 notice to increase rent annually in line with the market, which gives you agility.
Potential Disadvantages
- Unpredictable Income: Tenants only need to give 1 month’s notice, which can lead to void periods.
- Harder to Plan Long-Term: Without a fixed term, it’s harder to schedule future plans confidently.
- Reduced Tenant Stability: Tenants may feel less committed, affecting how well they maintain the property.
Key Legal Considerations for 2025
Changes to rental legislation in 2025 may impact the security and notice periods associated with both tenancy types.
Landlords must remain aware of updates to:
- Section 21 reforms
- Renters Reform Bill
- Energy performance requirements (EPC standards)
- Council licensing schemes
As these changes roll out, fixed-term agreements may offer more legal predictability,
while rolling tenancies may become riskier unless landlords have strong tenant screening procedures in place.
We at London Estate Agency offer comprehensive tenant vetting and rent protection services to safeguard your income—regardless of tenancy type.
Should I Choose Fixed-Term or Rolling Tenancy in 2025?
Choose Fixed-Term If You:
- Want stable income for 6-12 months.
- Are you letting a property for the first time?
- Have recently refurbished the property and want to secure a longer-term occupant.
- Plan to review the rent or tenancy on a scheduled basis.
- Need time before deciding whether to sell or refinance.
Choose Rolling Tenancy If You:
- Need flexibility to reclaim the property soon.
- Are you unsure of your long-term plans?
- We are letting trusted, long-term tenants who prefer periodic terms.
- Are confident in low void risk and tenant reliability.
How We Help Landlords Decide
At London Estate Agency, we provide personalised guidance on tenancy agreements based on the following:
- Your property type and location
- Tenant profile
- Investment goals
- The current rental market in your area
We also offer rent collection, tenant screening, and legal compliance services,
ensuring you stay protected whether you opt for fixed-term or rolling tenancies.
FAQs Landlords Ask About Tenancy Agreements
Can I increase the rent during a fixed-term tenancy?
Yes, but only if your agreement includes a rent review clause or the tenant agrees. Otherwise, wait until renewal.
Do I need to serve notice at the end of a fixed term?
No, if the tenant leaves as agreed.
If they stay, the tenancy either renews or rolls into a periodic tenancy unless otherwise specified.
How do I regain possession under a rolling tenancy?
You can use a Section 21 notice, provided all compliance measures (EPC, gas cert, deposit protection) are met. We manage this for landlords seamlessly.
Can tenants leave a fixed term early?
Only if the agreement has a break clause or if both parties mutually agree. Otherwise, the tenant remains liable for the rent.
What’s better for tax or mortgage purposes?
Fixed terms often work better for mortgage affordability assessments, while rolling tenancies may raise lender concerns. Speak to our team for property finance referrals.
Partner With Us for Peace of Mind
At London Estate Agency, we do more than just draft tenancy agreements. We offer a turnkey lettings solution:
- Drafting compliant tenancy agreements
- Rent protection insurance
- Eviction support
- Tenant referencing
- EPCs and licensing compliance
- Rent review and increase support
Let us help you make the right choice for your rental property and ensure legal compliance, income protection, and professional tenant management in 2025.
