You might be surprised to learn that a verbal tenancy agreement is perfectly valid and legally binding in England. If you agree to let someone live in your property in exchange for rent, and they move in and start paying, a tenancy exists — whether or not anything was written down. But just because it is legal does not mean it is wise. Here is everything landlords need to know about verbal tenancies and why you should always have a written agreement.
Yes, Verbal Agreements Create Tenancies
Under English law, a tenancy can be created orally. There is no legal requirement for a tenancy of less than three years to be in writing. If you verbally agree the key terms — the property, the rent, who the tenant is, and when the tenancy starts — then a legally binding tenancy exists. The tenant has all the same statutory rights as a tenant with a written agreement, including security of tenure, the right to have their deposit protected, and protection from unlawful eviction under the Protection from Eviction Act 1977.
For tenancies of three years or more, Section 52 of the Law of Property Act 1925 requires the agreement to be made by deed. But since most residential lettings are for shorter periods, this rarely applies in practice.
The Problem with Verbal Agreements
While a verbal tenancy is legally valid, it creates enormous practical problems. The biggest issue is proof. If there is a dispute about the terms — what the rent is, when it is due, who is responsible for repairs, whether the tenant can keep pets — there is no document to refer to. It becomes your word against the tenant's.
This is particularly dangerous in possession proceedings. If you need to go to court to regain possession, you will need to demonstrate the terms of the tenancy to the judge. Without a written agreement, this becomes extremely difficult. Judges are likely to interpret any ambiguity in the tenant's favour.
Deposit Protection Still Applies
Even with a verbal agreement, you are still legally required to protect the tenant's deposit in a government-approved scheme within 30 days of receiving it, and you must serve the prescribed information on the tenant. If you fail to protect the deposit or serve the prescribed information, the tenant can claim compensation of between one and three times the deposit amount.
Without a written agreement, it becomes harder to demonstrate that prescribed information was served, what the deposit amount was, and what deductions were agreed.
The RRA Changes Things Further
The Renters' Rights Act 2025 (c. 26) introduces a requirement for landlords to provide tenants with a written statement of tenancy terms. For existing tenancies, this must be provided by 31 May 2026. For new tenancies starting on or after 1 May 2026, it must be given at the outset.
This new requirement effectively makes it much harder to rely on a purely verbal arrangement. While the written statement is not the same as a full tenancy agreement, it means the key terms must be recorded in writing. Failure to provide it could affect your ability to serve valid notices.
What Terms Are Implied by Law?
When there is no written agreement, certain terms are implied by statute. The landlord is responsible for keeping the structure and exterior of the property in repair under Section 11 of the Landlord and Tenant Act 1985. The tenant has the right to quiet enjoyment. The tenancy will be treated as an assured shorthold tenancy (or, from May 2026, a periodic tenancy under the RRA). Rent is payable at the agreed amount and frequency.
Why Written Is Always Better
A written tenancy agreement protects both parties. It sets out clearly:
- The rent amount, payment date, and method
- The deposit amount and which scheme protects it
- The landlord's and tenant's obligations
- Rules on pets, subletting, and alterations
- The process for ending the tenancy
Having these terms in writing avoids disputes and demonstrates to any tribunal or judge that both parties understood the terms from the outset.
Take Action
Do not rely on verbal agreements. Generate a comprehensive, RRA-compliant tenancy agreement and 13 other essential documents for £29.99.
Check whether your current arrangements meet the new requirements with our free RRA Compliance Checker, or read more about the new written statement requirement in our Renters' Rights Act FAQ.