Nearly a quarter of private renters in England moved within the last year, and almost everyone who does will sign a lease agreement. I’ve been writing about UK property law for long enough to see the same confusion crop up again and again — people skim the small print, assume a fixed term means what it says, and miss the fact that the entire system is about to change. The Renters’ Rights Act 2025, which received Royal Assent on 27 October 2025, is the biggest shake-up in decades. From 1 May 2026, Section 21 no-fault evictions disappear, fixed-term tenancies become a thing of the past, and landlords face fines of up to £7,000 if they fail to provide tenants with written information about key terms before the agreement is signed. If you’re renting or planning to, the rules you think you know may not apply much longer. Here’s what you actually need to know.
That last figure — the deposit protection deadline — is one of the most commonly missed rules I come across. Your landlord must put your deposit in a government-approved scheme within 30 days of receiving it. If they don’t, you could be entitled to compensation. It’s the kind of detail that makes a real difference, and it’s exactly why you need to understand what’s in your agreement before you sign. If you’re also dealing with the logistics of moving, you might find my guide on changing your address when renting in the UK useful for getting the admin sorted quickly.
What an assured shorthold tenancy actually means now
The most common tenancy type in England and Wales has been the assured shorthold tenancy (AST). For years, that meant a fixed term — usually six or twelve months — after which the tenancy either renewed or rolled into a periodic agreement. But from May 2026, that model flips. New tenancies will be periodic from day one. There is no end date. You can stay as long as you pay rent and follow the rules. You can leave by giving two months’ notice at any time, and your landlord can only end the tenancy on specific legal grounds. That’s a fundamental shift, and it changes how you should read every clause in your agreement.
What I’d do right now is check whether your current agreement was signed before or after 1 May 2026. If it was signed before, your existing fixed term still stands until it ends — but after that, the new rules apply. If you’re signing a new agreement after that date, you won’t have a fixed term at all. That changes how you plan your move, your notice period, and even your budget. For a deeper look at what happens when you need to add or change terms later, my article on essential rental lease addendum requirements covers the specifics.
Why the May 2026 deadline matters for your deposit and your rights
The change isn’t just about evictions. It affects how your deposit is handled, how rent increases work, and what information your landlord must give you before you sign. Under the new rules, landlords must provide written information about key terms before the tenancy is agreed — not after. If they don’t, you can complain to the local council, and they could face a fine of up to £7,000. That’s a serious incentive for landlords to get it right, but it also means you have a clear right to see everything in writing upfront.
Consider this scenario: your annual rent is £20,000. Under the Tenant Fees Act 2019, your deposit is capped at 5 weeks’ rent — roughly £1,923. If your landlord asks for more, that’s illegal. But if you don’t know the cap, you might pay it anyway. That’s exactly the kind of mistake the new rules are designed to prevent. The written information your landlord must provide includes the rent amount, the deposit amount and how it’s protected, the term of the tenancy, and any service charges. If you’re renting a flat, the service charge question is especially important — clarify who pays it before you sign.
I’ve noticed that tenants often assume their deposit is automatically protected. It isn’t. Your landlord has 30 days from receiving it to put it in a government-approved scheme. If they miss that deadline, you can take them to court and potentially receive between one and three times the deposit amount as compensation. That’s not a small sum. A tenancy deposit protection guide can help you track the rules and deadlines, but the key is to check your deposit certificate as soon as you move in.
Where people go wrong with lease agreement terms
The most common mistakes I see aren’t about the big things — rent, deposit, term length. They’re about the details that seem minor until they cost you money. Here are the ones that trip people up most often.
Assuming the fixed term is the whole story
Many tenants think a 12-month fixed term means they’re locked in for a year. That’s not quite right. Even under current rules, you can usually negotiate a break clause — a point in the contract where either party can end the tenancy early. From May 2026, the fixed term disappears entirely for new tenancies, so this becomes less relevant. But if you’re signing a fixed-term agreement before that date, check whether there’s a break clause. If there isn’t, you could be liable for rent for the full term even if you need to leave early. That’s a costly oversight.
Ignoring the unfair terms trap
The Consumer Rights Act 2015 protects you against unfair contract terms. That means your landlord cannot include clauses that let them enter the property without 24 hours’ written notice, force you to pay for professional cleaning at the end of the tenancy, or charge excessive interest on late rent (capped at 3% above the Bank of England base rate). I’ve seen agreements that try to slip these in anyway. If you spot one, you can challenge it. The clause is likely unenforceable. If you’re unsure, a tenant landlord lawyer can review the agreement for you before you sign.
Overlooking the holding deposit rules
Your landlord can ask for a holding deposit to reserve the property, but it’s capped at one week’s rent. They must refund it within 15 days or put it towards your first month’s rent — unless you pull out of the tenancy or provide false information on your application. I’ve heard from tenants who paid a holding deposit and then never saw it again because the landlord claimed they changed their mind. If that happens, you have grounds to challenge it. The rules are clear, and the Tenant Fees Act 2019 backs you up.
Missing the rent review clause
From May 2026, rent review clauses that allow arbitrary increases mid-tenancy are banned. Rent can only go up once per year, and your landlord must serve a formal Section 13 notice giving at least two months’ warning. But if you’re on an existing fixed-term agreement signed before that date, your contract might still contain a rent review clause. Read it carefully. If it allows increases without proper notice, it may be unenforceable under the new rules. Don’t assume your landlord knows the law — check it yourself.
→ Scroll right to see all columns
| Requirement | Before May 2026 | From May 2026 |
|---|---|---|
| Tenancy type | Fixed-term AST (6 or 12 months typical) | Periodic (rolling) from day one |
| Eviction grounds | Section 21 (no-fault) allowed | Section 21 abolished; must use Section 8 grounds |
| Written key terms | Not legally required before signing | Must be provided before tenancy agreed; fine up to £7,000 if not |
| Rent increases | Could be included in contract as review clause | Limited to once per year; must use Section 13 notice with 2 months’ warning |
Writing about topics like this takes real time and research. If you buy something through an Amazon link on this page, I may earn a small commission — at no extra cost to you. It’s one of the things that makes it possible to keep BritWealth free to read. I only link to products that are genuinely relevant to the article.
How to read and negotiate your lease agreement terms
You don’t need to be a lawyer to understand your tenancy agreement. You just need to know what to look for and what questions to ask. Here’s a practical guide to the key sections.
Check the term and break clause first
If you’re signing a fixed-term agreement before May 2026, the most important line is the end date. But don’t stop there. Look for a break clause — it’s usually buried in the middle of the contract. A break clause lets you end the tenancy early, typically after six months, with two months’ notice. If there isn’t one, ask your landlord to add it. Many will agree, especially if you’re signing a 12-month term. If they won’t, consider whether you’re comfortable being locked in for the full period. For agreements signed after May 2026, the term is periodic by default, so this step is simpler — but you still need to confirm the notice period (standard is two months).
Verify the deposit protection details
Your agreement must state the deposit amount and confirm which government-approved scheme will protect it. The three schemes in England and Wales are the Deposit Protection Service, MyDeposits, and the Tenancy Deposit Scheme. Your landlord must give you the prescribed information — including the scheme’s name, your deposit reference number, and how to get your deposit back — within 30 days of receiving it. If that information isn’t in the agreement, ask for it in writing before you pay anything. A deposit protection information booklet can help you understand your rights, but the key is to get the certificate itself.
Understand the financial obligations beyond rent
Your agreement should list exactly what you’re responsible for paying. That includes rent, utilities (gas, electricity, water), council tax, and any service charges if you’re in a flat. The Tenant Fees Act 2019 bans most other fees, so if you see charges for referencing, administration, or check-in inventories, challenge them. The only permitted payments are rent, a refundable tenancy deposit (capped at 5 weeks’ rent), a refundable holding deposit (capped at 1 week’s rent), and default fees for lost keys or late rent (only if rent is 14+ days overdue). If your agreement includes anything else, it’s likely unenforceable.
Know what happens when the tenancy ends
Under the new rules, there’s no fixed end date — the tenancy continues until you give notice or your landlord gets a court order. But if you’re on an existing fixed term, the agreement should explain what happens at the end. Most ASTs say the tenancy becomes periodic automatically if neither party gives notice. That means you can stay on the same terms, month to month, without signing a new contract. Your rent stays the same unless your landlord serves a valid Section 13 notice. If you want to leave, you need to give notice in line with your agreement — usually one month if you’re on a periodic tenancy, or two months under the new rules. For a complete checklist of what you need to have ready, my guide on essential apartment lease required paperwork walks through every document you should keep on file.
Prepare for the furnished vs unfurnished question
Your agreement should state whether the property is furnished, unfurnished, or part-furnished. This matters because it affects your rent — furnished properties typically cost more — and your responsibility at the end of the tenancy. If the property is furnished, the landlord must provide a inventory listing every item and its condition. Check it carefully when you move in. If something is missing or damaged, photograph it and note it on the inventory. Otherwise, you could be charged for it when you leave. If you’re unsure which option suits you best, my comparison of furnished vs unfurnished rentals breaks down the trade-offs.
Frequently asked questions about lease agreement terms
Can my landlord increase the rent during a fixed term? ▾
What happens if my landlord doesn’t protect my deposit? ▾
Can I be evicted without a reason after May 2026? ▾
What information must my landlord give me before I sign? ▾
Can I leave a periodic tenancy at any time? ▾
What counts as an unfair term in a tenancy agreement? ▾
The biggest shift in UK rental law in decades is just months away. From May 2026, fixed terms disappear, no-fault evictions end, and landlords must put key terms in writing before you sign. That changes everything about how you should read your lease agreement. My advice is simple: check your deposit protection certificate, look for unfair terms, and know your notice period. If you’re signing a new agreement after the deadline, you’re entering a system where you have more security but also more responsibility to understand the rules. If this was useful, you might also want to read how to spot good all-inclusive rent deals in the UK.
Sources and Further Reading
Understanding electronic signature rules for lease contracts — If you’re signing your tenancy agreement digitally, this explains what’s legally valid and what isn’t.
Tenancy agreements: written information for your tenant. GOV.UK, 2026.
United Kingdom lease agreements guide. Expat Focus, 2025.
UK rental agreement rules 2026 guide. GlobeU, 2026.
