What Is an Assured Shorthold Tenancy? A Complete Guide for UK Landlords

If you're renting out a residential property in England or Wales, the chances are your tenancy is — or should be — an Assured Shorthold Tenancy (AST). It's by far the most common form of private-sector tenancy, and it's been the default since the Housing Act 1996 amended the original Housing Act 1988.

But what exactly is an AST, what does the law require, and what should your agreement actually say? This guide covers everything you need to know.

What is an Assured Shorthold Tenancy?

An Assured Shorthold Tenancy is a type of tenancy agreement between a private landlord and a tenant for a residential property. It gives the tenant the right to live in the property for an agreed period, while giving the landlord a guaranteed route to regain possession at the end of the tenancy (provided the correct legal process is followed).

Since 28 February 1997, any new tenancy automatically becomes an AST unless the landlord specifically creates a different type of tenancy. You don't even need a written agreement for an AST to exist — although you absolutely should have one.

When does an AST apply?

An AST applies when all of the following are true:

• The property is the tenant's main or only home
• The landlord is a private landlord (not a local authority or housing association, though some HA tenancies can be ASTs)
• The annual rent is between £250 and £100,000 (£1,000 to £100,000 in London)
• The tenant is an individual (not a company)
• The landlord does not live in the property

If any of these conditions aren't met, you may have a different type of tenancy — such as a common law tenancy, an excluded tenancy (lodger), or a regulated tenancy.

Fixed-term vs periodic tenancy

An AST can be either fixed-term or periodic.

Fixed-term

A fixed-term AST runs for a specific period — usually 6 or 12 months, though it can be any length. During the fixed term, neither the landlord nor the tenant can end the tenancy early unless:

• The agreement includes a break clause allowing early termination
• Both parties agree in writing
• The landlord has grounds for possession under Section 8 (e.g. rent arrears)

Periodic

A periodic tenancy has no fixed end date. It rolls on week by week or month by month, depending on how rent is paid. A tenancy automatically becomes periodic when a fixed term ends and the tenant stays on without signing a new agreement. This is called a statutory periodic tenancy.

Most landlords start with a 6- or 12-month fixed term, then allow the tenancy to roll into a periodic tenancy. This gives both parties flexibility.

What must an AST agreement include?

While a verbal AST is legally valid, a written agreement protects both landlord and tenant. A good AST agreement should include:

Essential information

• Names of the landlord and tenant(s)
• Address of the rental property
• Start date and length of the fixed term (if applicable)
• Rent amount, payment frequency, and payment method
• Deposit amount and which tenancy deposit protection scheme it's registered with

Key clauses

• Landlord's obligations — repairs, maintenance, insurance, compliance with safety regulations
• Tenant's obligations — paying rent on time, keeping the property clean, not causing nuisance, seeking permission for alterations
• Deposit protection — confirmation that the deposit will be protected within 30 days in a government-approved scheme
• Notice periods — how much notice each party must give to end the tenancy
• Break clause (optional) — allowing either party to end a fixed-term tenancy early, usually after a minimum period
• Restrictions — on pets, smoking, subletting, running a business from the property
• Inventory reference — linking to a separate inventory and schedule of condition
• Right of entry — the landlord's right to inspect or carry out repairs, with reasonable notice (minimum 24 hours)

Prescribed information

By law, landlords must provide tenants with:

1. A copy of the How to Rent guide (current version)
2. A valid Energy Performance Certificate (EPC) for the property
3. A current Gas Safety Certificate (if the property has gas)
4. The prescribed information about their deposit protection

Failure to provide these documents can prevent you from serving a valid Section 21 notice later.

Common mistakes landlords make

1. Not having a written agreement

Even though oral ASTs are legally valid, trying to resolve a dispute without a written agreement is a nightmare. Every term becomes "he said, she said." Always put it in writing.

2. Using an outdated template

Tenancy law changes frequently. Templates downloaded years ago may not reflect current requirements around deposit protection, the Tenant Fees Act 2019, or the Homes (Fitness for Human Habitation) Act 2018. Using an outdated agreement can leave you exposed.

3. Including unfair terms

Under the Consumer Rights Act 2015, any term in a tenancy agreement that creates a significant imbalance to the detriment of the tenant may be considered unfair and unenforceable. Common examples include excessive penalty charges, unreasonable restrictions, or clauses that try to shift the landlord's legal responsibilities onto the tenant.

4. Forgetting to protect the deposit

You must protect the tenant's deposit in a government-approved scheme within 30 days of receiving it. Failure to do so means you cannot serve a valid Section 21 notice, and the tenant can apply to court for compensation of 1 to 3 times the deposit amount.

5. Not serving prescribed information

Even if you protect the deposit, you must also serve the prescribed information to the tenant within 30 days. This includes details of the scheme, the deposit amount, and the landlord's contact information.

How long should an AST be?

There's no legal minimum for an AST (the old 6-month minimum was abolished in 1997). However, most landlords opt for either:

• 6 months — gives flexibility to reassess the tenancy relatively quickly
• 12 months — provides more stability for both parties and is preferred by most tenants

Some landlords offer longer fixed terms (2-3 years) to attract reliable tenants who want security. The right length depends on your circumstances and the local rental market.

Can you end an AST early?

Landlord ending the tenancy

During a fixed term, a landlord can only end the tenancy by:

• Using a break clause (if one exists in the agreement)
• Serving a Section 8 notice on specific legal grounds (such as at least 2 months' rent arrears)
• Reaching a mutual agreement with the tenant

After the fixed term (or during a periodic tenancy), the landlord can also serve a Section 21 notice giving a minimum of 2 months' notice. This is sometimes called a "no-fault eviction" because the landlord doesn't need to give a reason — though they must have complied with all legal requirements (deposit protection, prescribed information, EPC, gas safety, How to Rent guide).

Tenant ending the tenancy

During a fixed term, a tenant can only leave early if:

• There's a break clause in the agreement
• The landlord agrees in writing
• The landlord is in serious breach of their obligations

After the fixed term, the tenant can end a periodic tenancy by giving at least one month's notice, ending on the last day of a tenancy period.

Do you need a solicitor?

A solicitor will charge anywhere from £150 to £500+ to draft a bespoke AST. For most standard lettings, this isn't necessary — provided your agreement is up to date, comprehensive, and reflects current legislation.

The key is making sure your agreement covers all the required clauses and prescribed information, uses fair terms under the Consumer Rights Act 2015, and is tailored to your specific property and tenancy arrangement.

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