Assured Shorthold Tenancy (AST) Explained

Assured Shorthold Tenancies (ASTs) are the most common type of tenancy agreement used in the UK. Most residential tenancies will be ASTs, but what exactly are they? In this blog, I will explain everything you need to know about ASTs in detail including the rights and responsibilities of tenants and landlords under ASTs, the difference between ASTs and other types of tenancy agreements, and more.

Table of Contents

What is an Assured Shorthold Tenancy?
What Does an Assured Shorthold Tenancy Agreement Include?
What Kinds of Tenancy Cannot be ASTs?
What’s the Difference Between an Assured Tenancy and an AST?
Benefits of Assured Shorthold Tenancies for Landlords and Tenants

What is an Assured Shorthold Tenancy?

The Assured Shorthold Tenancy was introduced by the Housing Act 1998 and further amended by the Housing Act 1996. Before the 1988 Act, tenants could pass their tenancies down to relatives and could stay in a landlord’s property almost indefinitely. This made it difficult for landlords to evict tenants. Landlords also had fewer responsibilities towards the maintenance of the property and rental amounts were not regulated as much.

An AST is an agreement between a landlord and their tenants that offers ‘limited security of tenure’. It allows the landlord to let out their property while retaining the right to repossess their property at the end of the tenancy term. An AST usually sets out the length of the tenancy agreement, which is often 6 months. After this time, the tenancy agreement can continue on a rolling basis, or be extended by a new agreement between the landlord and tenants.

What Does an Assured Shorthold Tenancy Agreement Include?

An AST agreement is usually a written contract (they can be verbal, although I do not recommend this) signed by both tenants and the landlord of a property. It can include:

All property details, i.e. full address
The start and end date of the tenancy
The notice period for ending the tenancy
The amount owed in rent and when it should be paid
Deposit amount and details of the deposit protection scheme
Contact details of both the tenants and the landlord
Responsibilities of the landlord and tenants
Any rules of the property, e.g. no smoking

Both parties must sign and keep a copy of the AST agreement.

What Kinds of Tenancy Cannot be ASTs?

Some tenancies cannot be ASTs – there are several exceptions listed in the Housing Act 1988. See below for a list of types of tenancy that can’t be ASTs:

The tenancy started before 15th January 1989
The landlord also lives in the rented property
The rented property is not the tenant’s main residence
The landlord is a local authority
The property is provided by a local association or trust as social housing
The rent on the property is more than £100,000 per year or less than £250 per year (or £1000 per year in London)
The property is being let to a business
The property is an agricultural holding or within the terms of the Agricultural Holdings Act 1986
The property is a holiday let

This is subject to change depending on your local authority – check with them for more details about regulations that apply to ASTs in your area.

What’s the Difference Between an Assured Tenancy and an AST?

An AST offers landlords the automatic right to regain possession of their property after the initial fixed term of the agreement, as long as they give at least two month’s notice to the tenants. This is a Section 21 eviction and the landlord need not offer any reason for the eviction. (Note – this is subject to change due to the upcoming Renters’ Rights Bill).

Assured tenancies were also introduced by the Housing Act 1988. An assured tenancy offers greater security to tenants as the rental period is not fixed. There are more regulations around rent increases and the landlord does not have the automatic right to regain possession of the property. Instead, they must show proof of a condition in the contract the tenants are not meeting to begin eviction proceedings, such as non-payment of rent. Rent is also more highly regulated in assured tenancies and rent increases are subject to a challenge before a rent assessment committee. Most housing association properties are assured tenancies.

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Benefits of Assured Shorthold Tenancies for Landlords and Tenants

AST agreements provide security for both landlords and tenants by clearly stating the rights and responsibilities of each party. ASTs can also continue to run after the initial fixed term and offer each party the same rights and protections. Here are some benefits of ASTs for landlords and tenants:

Benefits of ASTs for Landlords

They provide a legal framework for renting out their properties
They give landlords the right to regain possession of their property once the tenancy ends
They can include break clauses giving either party the right to terminate the tenancy early
They state the responsibilities of the tenant and the rules of the property that must be adhered to for the tenancy agreement to remain valid
They provide a source of reliable income

Benefits of ASTs for Tenants

They offer security of tenure for the fixed term stated in the AST agreement
They provide protection against unfair eviction
Rent cannot be increased during the fixed term
The maximum deposit for ASTs is set at the equivalent of 5 weeks’ rent
They offer tenants the ability to challenge rent increases through the courts

ASTs can offer strong legal protections to both landlords and tenants and are a useful tool for property investors wishing to rent their properties to tenants. When creating an AST agreement, always use a standard contract template created by a legal professional, e.g. a solicitor who specialises in property law. You should read it thoroughly before using it to make sure you understand it fully and direct any questions you have to a solicitor or other professional. A tailored AST agreement can also be created for you by a legal professional for a fee.

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