What is the difference between a fixed term and a periodic tenancy?
Whether the tenancy runs for a defined period or continues indefinitely, rolling from period to period — and the difference affects how it can be ended by either side.
Fixed term. The tenancy is granted for a stated period — commonly six or twelve months.
During the fixed term:
The tenant is committed for the whole period. Leaving early does not end the liability for rent unless the landlord agrees to a surrender or a break clause applies. This is the point tenants most often misunderstand — giving notice during a fixed term does not end it.
The landlord cannot generally end it early either, other than on specified grounds.
Periodic tenancy. Runs from period to period — usually month to month — continuing until ended by notice.
A statutory periodic tenancy arises automatically when a fixed-term assured shorthold tenancy ends and the tenant remains, with no need to sign anything. A contractual periodic tenancy is one agreed as periodic from the start.
How each is ended by the tenant:
Fixed term — at the end of the term, or under a break clause, or by agreement.
Periodic — by notice to quit, generally at least one period and expiring at the end of a period, with specific requirements depending on the tenancy.
Break clauses. A term allowing either or both parties to end a fixed term early, usually after a minimum period and on defined notice. The requirements must be followed exactly — timing, form and to whom notice is given — and break notices fail on technicalities regularly.
Which is better for a tenant. A fixed term gives security — you cannot be asked to leave during it, subject to grounds — at the cost of flexibility. A periodic tenancy gives flexibility to leave on short notice, and correspondingly less security.
Joint tenancies complicate it considerably. Where tenants are jointly and severally liable, notice by one joint tenant on a periodic tenancy can end it for everyone — a genuinely serious trap that surprises sharers, and one worth understanding before anyone serves anything.
Renewal versus continuation. Signing a new fixed term is not required, and letting a tenancy become periodic is frequently in the tenant's interest — though agents may present renewal as automatic and charge for it.
Reform has been legislated to move toward periodic tenancies as standard; check the current position.
General information, not legal advice.