Section 1 inserts a new section 4A before section 5 of the Housing Act 1988. This section provides that all assured tenancies will be periodic and can no longer have fixed terms.
	Subsections (1) and (2) provide that any terms of an assured tenancy that try to create a fixed term will have no legal effect. Terms of an assured tenancy providing for the duration of the periodic tenancy to be different to the rent period will also have no legal effect. Where such terms exist, the tenancy will instead be periodic, and the tenancy’s periods will be the same duration as the period for which rent is paid.
	Subsections (3) to (8) limit the length of the rent period of an assured tenancy. Subsection (3) provides that rent periods must be either monthly or no more than 28 days long. Assured tenancy terms which try to create any other length of period will be of no legal effect. Instead, the tenancy has effect as if it provided for monthly periods with the rent payable monthly on the first day of each period. Subsection (4) allows for rent periods to vary in length at different times during the tenancy, however the length of each rent period must be permitted by subsection (3). Subsection (5) provides that the rent will remain at the same level as agreed between the parties initially but will instead be paid monthly on a pro-rata basis in accordance with subsection (6). Subsection (7) clarifies that the new section 4A does not restrict landlords and tenants agreeing different terms, but any terms cannot contravene subsections (1) and (3).
Part 1: Tenancy reform Chapter 1: Assured Tenancies Section 1: Assured tenancies to be periodic with rent period not exceeding a month Effect