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Everything you need to know about ASTs in England — from the Housing Act 1988 to the Renters' Rights Act 2025 and beyond.
The assured shorthold tenancy — commonly known as an AST — is the most common type of residential tenancy in England. If you are a private landlord letting a property to an individual who will live there as their home, your tenancy is almost certainly an AST.
ASTs have been the default tenancy type since February 1997, and the overwhelming majority of England's estimated 4.6 million private rented homes are let on this basis. Understanding what an AST is, what obligations it places on you as a landlord, and how recent legislation has changed the rules is essential for staying compliant and avoiding costly mistakes.
This guide covers everything you need to know in 2026 — from the original statutory framework under the Housing Act 1988, through the fundamental changes introduced by the Renters' Rights Act 2025, to the practical steps you must take to create a compliant tenancy agreement, protect deposits, increase rent, and end a tenancy lawfully.
An assured shorthold tenancy is a type of residential tenancy created by the Housing Act 1988. It was originally introduced alongside the assured tenancy as part of the deregulation of the private rented sector. The AST gave landlords a relatively straightforward way to let residential property while retaining the ability to recover possession at the end of the tenancy.
Since 28 February 1997, when the Housing Act 1996 came into force, every new private residential tenancy in England is automatically an AST unless it specifically falls into one of the excluded categories. You do not need to do anything special to create an AST — it arises by default whenever the statutory conditions are met.
The key statutory conditions for an AST are:
If all these conditions are met, the tenancy is an AST regardless of what the tenancy agreement says — or even if there is no written agreement at all. For a deeper explanation, see our article on what an assured shorthold tenancy is.
Any private landlord can grant an AST, whether they own one property or a portfolio of hundreds. The landlord can be an individual, a group of joint owners, or a corporate entity — the restriction on legal entities applies only to the tenant, not the landlord.
However, the tenancy will only qualify as an AST if the following requirements are satisfied:
The tenant — or at least one of the joint tenants — must be a natural person, not a company. If a property is let to a company for use by its employees, the tenancy is a company let and falls outside the AST regime entirely. Company lets do not benefit from the statutory protections of the Housing Act 1988, including deposit protection requirements.
The annual rent must be at least £250 (or £1,000 in Greater London) and no more than £100,000. If the rent falls outside these thresholds, the tenancy cannot be an AST. In practice, the vast majority of private lettings in England fall within these limits. The lower threshold excludes nominal or token rents, and the upper threshold excludes very high-end luxury lettings.
The tenant must occupy the property as their only or principal home. This means the property must be where they actually live — not a second home, holiday property, or business premises. If the tenant stops living at the property as their principal home, the AST may cease to be an assured tenancy, which could affect the landlord's ability to use the Section 8 possession procedure.
Certain types of letting are excluded from the AST regime:
An AST carries specific statutory rights and obligations for both the landlord and the tenant. These apply regardless of what the tenancy agreement says — statute overrides any contrary contractual terms.
Under the Renters' Rights Act 2025, all ASTs are now periodic tenancies from the outset. The tenant has the right to remain in the property indefinitely, for as long as they continue to pay rent and comply with the tenancy terms. The landlord can only recover possession by establishing one of the statutory grounds under Section 8 of the Housing Act 1988 and obtaining a court order.
If the landlord takes a deposit, it must be protected in one of the three government-approved tenancy deposit schemes within 30 days of receipt. The landlord must also provide the tenant with prescribed information about the deposit within the same timeframe. Failure to comply can result in a court-ordered penalty of between one and three times the deposit amount. For more detail, see the deposits guide.
Under Section 11 of the Landlord and Tenant Act 1985, the landlord is responsible for keeping in repair the structure and exterior of the property, and for maintaining the installations for water, gas, electricity, sanitation, and heating. These obligations cannot be contracted out of. From 2026, the Decent Homes Standard also applies to the private rented sector, setting minimum standards for the condition, safety, and facilities of rented homes.
The tenant has the right to live in the property without interference from the landlord. This means the landlord must not enter the property without giving proper notice (typically at least 24 hours), must not harass the tenant, and must not do anything that substantially interferes with the tenant's use and enjoyment of the property. Breach of quiet enjoyment can result in claims for damages and, in serious cases, prosecution under the Protection from Eviction Act 1977.
Landlords must provide tenants with specific documents and information, including an Energy Performance Certificate (EPC), gas safety certificate, electrical safety report (EICR), and the government-produced "How to Rent" guide (now replaced by the Renters' Rights Act information sheet). Failure to provide these documents can prevent the landlord from relying on certain grounds for possession.
Not every residential letting is an AST. Understanding the differences is important because different tenancy types carry different rights, obligations, and procedures for recovery of possession.
An assured tenancy (without the "shorthold") gives the tenant significantly greater security of tenure. Assured tenancies were the default before February 1997 and are now relatively rare in the private sector. The key difference historically was that an AST allowed the landlord to use Section 21 to recover possession without a reason, whereas an assured tenancy did not. Since Section 21 is now abolished, the practical differences between the two types have narrowed considerably. However, some procedural differences remain, particularly around succession rights and the grounds available for possession.
Regulated tenancies pre-date the Housing Act 1988 and provide tenants with the highest level of security. They are governed by the Rent Act 1977, which gives tenants lifetime security of tenure and the right to a "fair rent" set by a rent officer. Very few regulated tenancies still exist, and no new ones can be created. If you inherit a property with a regulated tenant, you must comply with the Rent Act 1977 rather than the Housing Act 1988.
A company let is a tenancy where the tenant is a company rather than an individual. Because the Housing Act 1988 only applies to individuals, company lets fall outside the AST regime entirely. This means no deposit protection is required, no Section 8 procedure applies, and the tenancy is governed by common law and the specific terms of the agreement. Company lets can be ended by following the contractual notice provisions and, if necessary, forfeiture proceedings.
A licence gives someone permission to occupy property without granting them exclusive possession. The distinction between a tenancy and a licence is one of substance, not labelling — calling something a licence does not make it one. If the occupier has exclusive possession, pays rent, and lives in the property as their home, the arrangement is almost certainly a tenancy regardless of what the agreement says. The landmark case of Street v Mountford (1985) established this principle.
A lodger is someone who lives in the landlord's own home and shares living accommodation with the landlord. A lodger does not have a tenancy — they have a licence. This means the Housing Act 1988 does not apply, deposit protection is not required, and the landlord can ask the lodger to leave by giving reasonable notice without a court order. This is one of the few situations where a landlord can recover possession without going to court. For more, see our article on lodger vs tenant rights.
The Renters' Rights Act 2025, which received Royal Assent on 27 October 2025 with key provisions commencing on 1 May 2026, is the most significant reform to the private rented sector since the Housing Act 1988. It fundamentally changes how ASTs work. Here are the key changes every landlord must understand.
From 1 May 2026, it is no longer possible to create a fixed-term AST. All new ASTs are periodic from day one, rolling on a monthly or weekly basis with no end date. Existing fixed-term ASTs automatically convert to periodic tenancies on the commencement date. This applies regardless of what the tenancy agreement says — any fixed-term provision ceases to have effect. For a detailed explanation, see our article on what happens to fixed-term tenancies under the RRA.
Section 21 no-fault evictions are abolished. Any Section 21 notice served before commencement that has not yet led to a court order ceases to have effect. From 1 May 2026, the only way to recover possession is through Section 8 of the Housing Act 1988, using one of the statutory grounds. This means every eviction now requires a valid reason, evidence, and a court order. See our eviction process guide for the full step-by-step procedure.
Tenants have the right to request permission to keep a pet. The landlord must respond within 42 days and can only refuse on reasonable grounds. If the landlord does not respond, consent is deemed granted. Landlords can require the tenant to take out pet damage insurance. Blanket "no pets" clauses in tenancy agreements are no longer enforceable, though landlords can still refuse individual requests where there is a genuine reason — for example, where the lease of the building prohibits pets.
The Decent Homes Standard, which previously applied only to social housing, is extended to the private rented sector. This sets minimum standards for the condition, age, and state of repair of rented homes, including requirements around thermal comfort, modern facilities, and freedom from serious hazards under the Housing Health and Safety Rating System (HHSRS). Landlords must ensure their properties meet these standards, and local authorities will have enforcement powers.
Rent can only be increased using the Section 13 procedure. The landlord must serve a Section 13 notice giving at least two months' notice. Increases are limited to once per year and must be to the market rent. Contractual rent review clauses are no longer valid — even if your tenancy agreement contains one, it has no effect. If the tenant considers the proposed increase excessive, they can refer it to the First-tier Tribunal, which will determine the appropriate market rent. Importantly, the Tribunal can only set the rent at or below the market rate — it cannot increase it above what the landlord proposed.
The Act introduces a new Private Rented Sector Database that all landlords must register with, and a new Private Rented Sector Ombudsman that all landlords must join. The Ombudsman will provide a free, binding dispute resolution service for tenants as an alternative to court proceedings. Registration with the database and membership of the Ombudsman scheme will be requirements for lawfully letting a property.
Whether you are letting a property for the first time or updating an existing agreement, your tenancy agreement must reflect the current law. Using an outdated template from before the Renters' Rights Act 2025 is one of the most common — and most dangerous — mistakes landlords make. For guidance on whether you need a new agreement, see our article on whether you need a new tenancy agreement for the RRA.
Under the Renters' Rights Act, landlords must provide tenants with a government-produced information sheet explaining the tenant's rights and the landlord's obligations. This replaces the previous "How to Rent" guide. The information sheet must be provided before the tenancy begins, and failure to provide it may affect the landlord's ability to serve notice.
If you take a deposit, you must provide the tenant with the prescribed information within 30 days. This includes details of the deposit scheme, the amount protected, the landlord's and tenant's contact details, the property address, information about the scheme's dispute resolution procedure, and circumstances under which deductions may be made. The prescribed information must be served in writing with a signed copy from both parties.
To generate a fully compliant tenancy agreement that covers all these requirements, use our document creation tool. It produces a comprehensive periodic tenancy agreement tailored to your property in minutes.
How an AST ends depends on whether it is the tenant or the landlord who wants to bring the tenancy to an end.
Under the Renters' Rights Act 2025, a tenant can end an AST at any time by giving at least two months' notice in writing. There is no requirement to give a reason. The notice must expire on the last day of a period of the tenancy (i.e. if rent is paid monthly, the notice must expire at the end of a monthly period). Once valid notice is given, the tenant must leave by the notice expiry date, and the tenancy ends automatically without the need for a court order.
A landlord cannot simply give notice and ask the tenant to leave. The landlord must serve a Section 8 notice specifying one or more grounds for possession, wait for the notice period to expire, then apply to the county court for a possession order. The court will only grant the order if the ground is proved (and, for discretionary grounds, if it is reasonable to do so).
The most commonly used grounds include:
For the full list of all available grounds, see our grounds for possession guide or the Section 8 grounds reference table.
Both parties can agree to end the tenancy at any time by mutual consent. This is known as surrender. It does not require a court order. However, the surrender must be genuine — the landlord must not pressure or coerce the tenant into agreeing. If there is any suggestion of undue pressure, the surrender may be challenged. It is good practice to record the surrender in writing, signed by both parties, including the date the tenant will vacate and arrangements for the return of the deposit.
Deposit protection is one of the most strictly enforced areas of landlord law in England. The rules are clear, the penalties for non-compliance are severe, and there is no discretion — if you fail to comply, the court must order a penalty.
The Tenant Fees Act 2019 caps the deposit at:
Use our deposit cap calculator to quickly calculate the maximum deposit for your property.
You must protect the deposit in one of the three government-approved schemes within 30 days of receiving it. The three schemes are:
You must also serve the prescribed information on the tenant within the same 30-day period.
If you fail to protect the deposit or fail to serve the prescribed information within 30 days, the tenant can apply to the county court. The court must order the landlord to either repay the deposit or protect it in a scheme, and must order a penalty of between one and three times the deposit amount. There is no discretion — the penalty is mandatory. On a typical deposit of £1,500, this means a potential penalty of up to £4,500 on top of returning the deposit itself.
For comprehensive guidance, see our deposit protection guide.
The Renters' Rights Act 2025 has simplified rent increases but also restricted how they work. Landlords must follow the statutory procedure precisely — there is no room for informal arrangements.
Rent can only be increased using a Section 13 notice. This is the only lawful method — contractual rent review clauses, even if included in the tenancy agreement, have no effect. The procedure requires:
If the tenant considers the proposed increase to be above market rent, they can refer it to the First-tier Tribunal (Property Chamber) before the increase takes effect. The Tribunal will determine the market rent based on comparable properties in the area. The Tribunal's determination is binding on both parties. Importantly, the Tribunal can set the rent at or below the landlord's proposed amount — it cannot increase it above what the landlord asked for.
To check how much you can increase the rent and generate the correct notice, use our rent increase calculator.
Many landlords fall foul of the rules not through bad faith but through lack of awareness. Here are the most common mistakes we see, and how to avoid them.
This is by far the most common and most expensive mistake. The 30-day deadline is strict — protecting the deposit on day 31 is too late. The penalty is between one and three times the deposit, and the court has no discretion to waive it. Many landlords have lost thousands of pounds because they were a few days late or forgot to serve the prescribed information.
Tenancy agreement templates from before the Renters' Rights Act 2025 contain provisions that are now invalid or unenforceable — fixed-term clauses, Section 21 references, blanket pet bans, and contractual rent review clauses. Using an outdated agreement does not just look unprofessional — it can create legal uncertainty and may affect your ability to rely on certain grounds for possession.
Section 21 is abolished. Any notice served under Section 21 after the commencement date is invalid and has no legal effect. Some landlords who are unaware of the change continue to serve Section 21 notices, wasting time and creating false expectations. All possession claims must now be made under Section 8 using one of the statutory grounds.
The extension of the Decent Homes Standard to the private rented sector means landlords must ensure their properties meet minimum standards for condition, safety, thermal comfort, and modern facilities. Properties that would have been acceptable a few years ago may now fall below the standard. Local authorities have enforcement powers, and failure to meet the standard can result in improvement notices and civil penalties.
Landlords must provide tenants with an EPC, gas safety certificate, EICR, and the government information sheet. Failure to provide these documents can prevent the landlord from serving a valid possession notice and may result in financial penalties. Keep copies of everything you provide, with the date provided, as evidence of compliance.
Under the Renters' Rights Act, landlords cannot refuse a pet request without a reasonable ground for refusal. Failing to respond within 42 days means consent is deemed given. Landlords should have a clear process for handling pet requests and should document their reasons if they need to refuse. Simply stating "no pets" is no longer sufficient.
For a complete compliance checklist covering all your obligations, see our landlord compliance checklist for 2026.
An assured shorthold tenancy (AST) is a type of tenancy agreement — it is the specific legal category that applies to most private residential lettings in England. The tenancy agreement is the contract document that records the terms. Almost all private tenancy agreements in England create an AST by default, whether or not the document explicitly says so. The legal rights and obligations come from statute (the Housing Act 1988 and the Renters' Rights Act 2025), not just the written agreement.
An AST can technically exist without a written agreement — a verbal agreement is legally valid. However, from a practical standpoint, a written agreement is essential. The Renters' Rights Act 2025 requires landlords to provide tenants with a written statement of terms and a government-produced information sheet. Without a written agreement, it is extremely difficult to enforce specific tenancy terms, prove the rent amount, or rely on breach-related grounds for possession. Every landlord should have a comprehensive written agreement.
No. An AST can only be granted to an individual (or individuals) who occupy the property as their only or principal home. If the tenant is a company, the tenancy cannot be an AST — it would be a common-law tenancy or a contractual tenancy, sometimes called a company let. Company lets are not covered by the Housing Act 1988 and do not carry the same statutory protections, including deposit protection requirements.
All existing fixed-term ASTs automatically convert to periodic tenancies on 1 May 2026 when the Renters' Rights Act 2025 comes into force. From that date, it is no longer possible to grant a new fixed-term AST. All ASTs become periodic from day one, meaning they roll on a month-by-month (or week-by-week) basis with no end date. The tenant can end the tenancy at any time by giving two months' notice.
Yes, but only by using the Section 13 procedure. You can increase the rent once per year by serving a Section 13 notice giving at least two months' notice. The increase must be to the market rent for the property. Contractual rent review clauses are no longer valid under the Renters' Rights Act 2025. If the tenant considers the increase excessive, they can challenge it at the First-tier Tribunal (Property Chamber), which will determine the market rent.
The Tenant Fees Act 2019 caps the deposit at five weeks' rent where the annual rent is under £50,000, or six weeks' rent where the annual rent is £50,000 or more. The deposit must be protected in a government-approved scheme within 30 days of receipt, and you must provide the tenant with the prescribed information about the scheme. Failure to protect the deposit or provide prescribed information can result in a penalty of up to three times the deposit amount.
No. Since the Renters' Rights Act 2025 abolished Section 21 no-fault evictions, landlords can only end an AST by using one of the grounds for possession under Section 8 of the Housing Act 1988. Each ground requires a specific reason — such as rent arrears, the landlord wanting to sell the property, or the landlord needing to move back in — and the landlord must follow the correct notice period and court process.
No. Assured shorthold tenancies only exist in England. In Wales, private residential tenancies are now governed by the Renting Homes (Wales) Act 2016, which creates standard occupation contracts. In Scotland, private tenancies are governed by the Private Housing (Tenancies) (Scotland) Act 2016, which creates private residential tenancies. If your rental property is in Wales or Scotland, you must follow the legislation specific to that jurisdiction.
If you fail to protect the deposit in a government-approved scheme within 30 days, or fail to provide the prescribed information, the tenant can apply to the county court for a penalty of between one and three times the deposit amount. The court must order the penalty — there is no discretion. In addition, you will be unable to rely on certain grounds for possession until the deposit issue is resolved. This is one of the most common and most costly mistakes landlords make.
Under the Renters' Rights Act 2025, tenants have the right to request permission to keep a pet. The landlord must respond within 42 days and can only refuse on reasonable grounds. If the landlord does not respond within 42 days, consent is deemed to have been given. The landlord can require the tenant to take out pet damage insurance to cover any potential damage. Blanket "no pets" clauses in tenancy agreements are no longer enforceable.
A concise explainer covering the basics of ASTs and how they work in practice.
How existing fixed-term ASTs convert to periodic tenancies from May 2026.
Are verbal tenancy agreements valid? What are the risks for landlords?
Whether your existing agreement needs updating for the Renters' Rights Act 2025.
Generate a fully compliant periodic tenancy agreement in minutes.
Calculate the maximum deposit you can charge under the Tenant Fees Act 2019.
Every legal requirement you must meet as a landlord in England, all in one checklist.
Quick-reference table of all grounds, notice periods, and whether they are mandatory or discretionary.
Generate your complete document pack in minutes — a fully compliant periodic tenancy agreement, deposit prescribed information, and all the forms you need, tailored to your property.
This article is for general information only and does not constitute legal advice. While we make every effort to ensure accuracy, the law may change and individual circumstances vary. You should always seek independent legal advice before taking action based on the content of this guide. TenancyPack is not regulated by the Solicitors Regulation Authority.