Rent Increase Wales: Fixed Term to Periodic — When Can You First Increase?

Fixed-Term Contracts and Section 123

Section 123 of the Renting Homes (Wales) Act 2016 does not operate during an active fixed term. If you granted a 12-month fixed-term standard contract, any rent adjustment during that period must come from an express rent-review clause in the written statement. Without such a clause, the rent stays fixed for the duration.

Once the fixed term expires and the contract-holder remains in occupation, a periodic standard contract arises automatically under Section 184 of the Act. From that point, Section 123 is the only statutory mechanism for unilateral rent increases.

Calculating the First Increase

The 12-month interval depends on whether the rent was changed during the fixed term:

Scenario 1: No increase during the fixed term. The 12-month clock runs from the original occupation date — the day the contract started. If the fixed term began on 1 March 2025 and expired on 28 February 2026 with no rent change, the earliest effective date for a Section 123 increase is 1 March 2026. Because you need two months' notice, you could serve Form RHW12 by 31 December 2025 (specifying 1 March 2026 as the effective date).

Scenario 2: Rent was increased during the fixed term. If an express rent-review clause allowed an increase during the fixed term, the 12-month interval runs from the date that in-term increase took effect. If the fixed-term increase took effect on 1 September 2025, the earliest Section 123 effective date on the periodic contract is 1 September 2026.

Can You Serve the Notice Before the Fixed Term Ends?

Yes. There is no prohibition on serving Form RHW12 during the final months of a fixed term, provided the effective date falls within the periodic phase and satisfies both the two-month and 12-month rules. This lets you line up the first increase to take effect immediately or shortly after the periodic contract begins.

Converted Fixed-Term Contracts

If the fixed-term tenancy was created before 1 December 2022 (under the old Housing Act 1988) and has since converted to a periodic standard contract, the same Section 123 rules apply. Any rent variation that took effect under the old regime — whether during the fixed term or after it became periodic under the old rules — counts toward the 12-month calculation.

On a converted contract, the contract-holder also retains the right to refer your proposed rent to the Rent Assessment Committee using Form RAC4 within two months of receiving the notice.

Practical Timing

The transition from fixed term to periodic is the moment many landlords adjust rent to reflect current market levels, especially if the original fixed-term rent was set one or two years earlier. The key is starting the calendar calculation early enough to ensure the effective date is valid and the notice period does not slip.

The Wales Rent Increase Guide includes a date calculation worksheet for fixed-term-to-periodic transitions, the full Form RHW12 walkthrough and the contract classification checklist.

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