Three tenants share a house. One gets a job in another city and hands in notice. The other two want to stay. Under the old fixed-term world this was usually handled with a deed of assignment or a quiet swap. Under the Renters' Rights Act the position is much blunter, and a lot of landlords are getting it wrong.
The reason this scenario is suddenly everywhere: section 1 of the Renters' Rights Act 2025 inserts a new section 4A into the Housing Act 1988 providing that “terms of an assured tenancy are of no effect so far as they provide for a tenancy to be a fixed term tenancy”. Every assured tenancy is now periodic from day one — there is no fixed term standing between a sharer's change of mind and the rule below.
Tenants can end a tenancy that runs from one rent period to the next — a periodic assured tenancy — by giving up to two months' notice (a shorter period can be agreed in the tenancy agreement, but not a longer one imposed on them). Gov.uk's own guidance confirms both halves of this: a tenant can end their tenancy by giving 2 months' notice, and “the end date of the tenancy will need to align with the end of a rent period” — so if rent falls due on the 5th of each month, the notice has to end on the 4th, not on some random date the tenant picks.
A notice that expires on the wrong date is not automatically fatal, and in practice most landlords accept it. But you are entitled to insist on a correctly-dated notice instead. Either way, the tenants owe rent until the tenancy actually ends.
This is the part that causes arguments. When the tenancy ends, the tenants who wanted to stay have no legal entitlement to continue. If you want them to stay, you are granting a brand new tenancy, and you are entitled to refuse.
Treat it exactly as a new letting, because that is what it is:
Same answer: it is a new tenancy with all three named, referenced and signed up, plus a fresh deposit. Resist the temptation to just add a name to the existing agreement by hand — you end up with a document nobody can enforce cleanly and a deposit protected in the wrong names.
You cannot charge the remaining tenants a fee for issuing the new agreement — the Tenant Fees Act restrictions still apply. You also cannot require a payment to "release" the leaving tenant: a tenant who has served valid notice does not need releasing. You can, of course, hold everyone to the rent until the tenancy properly ends.

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