The assured shorthold tenancy has been the default form of residential tenancy in England for nearly three decades. If you have ever let a property, the chances are your tenancy agreement created an AST. But with the Renters' Rights Act 2025 coming into force on 1 May 2026, the AST as you know it is changing fundamentally. This guide explains what an AST is, how it works, and what is happening to it.
A Brief History
The assured shorthold tenancy was introduced by the Housing Act 1988 as part of the deregulation of the private rented sector. Before 1988, residential tenancies were typically regulated tenancies under the Rent Act 1977, which gave tenants extensive security of tenure and restricted rent. The 1988 Act created two new types of tenancy: the assured tenancy (with security of tenure but market rent) and the assured shorthold tenancy (with limited security and the landlord's ability to regain possession using Section 21).
The Housing Act 1996 made the AST the default. From 28 February 1997, any new residential tenancy was automatically an AST unless the landlord specifically created an assured tenancy.
Key Features of the AST
The traditional AST has several defining features:
- A fixed term, typically six or twelve months, followed by a periodic tenancy if neither party takes action
- The landlord can serve a Section 21 notice to end the tenancy after the fixed term, without giving any reason
- The deposit must be protected in a government-approved scheme under the Housing Act 2004
- The tenant must be given the prescribed information about the deposit and the How to Rent guide
- Rent is set at market levels but can only be increased using Section 13 during the periodic phase
Section 21 was the feature that made the AST attractive to landlords. It provided a straightforward, guaranteed route to possession without proving grounds at court. This certainty encouraged investment in the private rented sector.
What the Renters' Rights Act Changes
The Renters' Rights Act 2025 (c. 26) fundamentally alters the AST model:
- Section 21 is abolished. All possession claims must use Section 8 grounds.
- Fixed terms are abolished. All tenancies become periodic from day one. Existing ASTs automatically convert on 1 May 2026.
- New possession grounds are introduced, including Ground 1A (intention to sell).
- Rent increases are restricted to the Section 13 process, once per year with two months' notice.
- Tenants can give two months' notice to leave at any time.
Does the Term AST Still Matter?
Yes, but in a different way. The term "assured shorthold tenancy" does not disappear from the statute books. Existing ASTs convert to periodic assured tenancies, but the underlying framework remains the Housing Act 1988 as amended. Understanding the AST helps you understand the current law, because the RRA amends the 1988 Act rather than replacing it.
The key sections you need to know are Section 8 (possession grounds), Section 13 (rent increases), and the new provisions on written statements, pet consent, and the PRS database.
What About Existing AST Agreements?
If you have tenants on AST agreements signed before 1 May 2026, those agreements continue to apply. However, terms incompatible with the RRA cease to have effect. Fixed-term provisions, break clauses, and references to Section 21 all become meaningless. The remaining terms continue to govern the tenancy.
While your existing agreement will technically work, it will contain obsolete provisions and may lack provisions required by the new law. A properly drafted RRA-compliant periodic tenancy agreement gives you clearer protection.
Common Misconceptions
Some landlords believe that existing ASTs are exempt from the RRA. They are not. The Act applies to all assured tenancies, whether granted before or after commencement. Others believe the government will issue a new standard form of agreement. While the government will prescribe a written statement of terms, this is an information document, not a full tenancy agreement. You are still responsible for having a proper agreement.
Take Action
Get ahead of the changes with a properly drafted periodic tenancy agreement. Generate your complete document pack — 14 RRA-compliant documents for £29.99, pre-filled with your details.
For the full picture on what is changing, read our Plain English Guide to the Renters' Rights Act 2025 or check your readiness with our free RRA Compliance Checker.