For England and Wales, an assured shorthold tenancy (AST) is the most common type of tenancy agreement for the private rental sector. It sets out the terms and conditions between a landlord and tenant. Plus, it provides security for both parties while giving landlords the flexibility to regain possession under specific conditions. In this article, we'll explore what an assured shorthold tenancy is, how it works and how to navigate one effectively.
Assured shorthold tenancy meaning
An assured shorthold tenancy (AST) is a legally binding agreement between a landlord and a tenant. It allows the tenant to occupy a rental property for a fixed term or on a rolling basis. Unless stated otherwise, a tenancy agreement made after 28 February 1997 will automatically be an AST agreement.
Key criteria for an AST agreement
The rented property is the tenant’s main residence
The landlord doesn't live at the property or with the tenant
Tenants have exclusive use of the property
The tenancy starts on or after 15th January 1989
When is a tenancy not an AST?
Not all rental agreements qualify as assured shorthold tenancies. Here are some instances when a tenancy might not be an AST:
High rent or low rent: If the annual rent exceeds £100,000 or is less than £1,000 per year.
Company lets: When the tenant is a business rather than an individual.
Resident landlords: If the landlord lives in the same property as the tenant.
Short-term holiday lets: Temporary arrangements for holiday accommodations do not qualify as ASTs.
Tenancies that started before 15 January 1989: These may fall under older tenancy laws, such as regulated tenancies.
Note: This criteria may vary, always check your local housing regulations for updates or changes.
Common clauses in an AST
An assured shorthold tenancy (AST) agreement is a key document for landlords and tenants, outlining the terms and responsibilities of both parties. Here are some of the most common clauses you’re likely to encounter.
Common landlord clauses | Common tenant clauses |
|---|---|
Making sure property is fit for living | Payment of rent |
Review rent charges | Payment of bills like Council tax or utilities |
Deposit protections | Expected behaviour |
Checking smoker alarms and carbon monoxide detectors | General care and maintenance of property |
Annual gas safety checks |
Rent payment terms
This clause outlines the tenant’s financial obligation and gives landlords certain options if rent is not paid on time. It usually specifies the following details about rent:
Amount: The agreed-upon rent figure.
Due date: When the rent is expected to be paid
Payment method: Whether payments are made via bank transfer, standing order or another method.
Late payments: Any penalties for overdue rent, such as interest charges or additional fees.
Deposit details and protection
A deposit clause is legally required and protects tenants against unfair deductions. It also gives landlords security against potential losses.
Deposit amount: The sum required as a security deposit, typically equivalent to 4-5 weeks’ rent.
Deposit scheme: Confirmation that the deposit will be protected in a government-approved scheme (like a Tenancy Deposit Scheme or Deposit Protection Service).
Deductions: Circumstances under which the deposit can be partially or fully withheld, such as damage to the property or unpaid rent.
Return process: How and when the deposit will be returned at the end of the tenancy.
💡 Editor's insight: "For ASTs, the maximum deposit is capped at five weeks of rent payments (if the annual rent amount is less than £50,000). Landlords must legally comply with this rule."
Length of tenancy
A clear length-of-tenancy clause helps both parties plan for the future and avoid disputes about when the agreement ends.
Fixed-term tenancy: The exact duration of the initial tenancy period.
Periodic tenancy: What happens after the fixed term ends.
Renewal terms: Details about renewing or extending the tenancy beyond the fixed period.
Repair and maintenance responsibilities
This clause defines who is responsible for maintaining the property and addressing issues:
Landlord responsibilities: Typically this can cover structural repairs, plumbing, heating systems and ensuring the property complies with health and safety standards.
Tenant responsibilities: This can include keeping the property clean, disposing of rubbish and reporting maintenance issues promptly.
Use of the property
This clause sets rules for how the tenant can use the property, such as:
Residential use only: Prohibiting the property from being used as a business premises.
Subletting restrictions: Preventing tenants from subletting rooms or the entire property without the landlord’s written permission.
Occupancy limits: Specifying how many people are allowed to live in the property.
Notice periods for termination
This clause outlines the process for ending the tenancy, including:
Tenant notice: How much notice tenants must give if they wish to leave.
Landlord notice: The notice period landlords must give to regain possession (it may also include possession orders).
Break clauses: Allowing either party to terminate the agreement early under specific conditions, such as after six months in a twelve-month tenancy.
Utility bills and council tax
This clause clarifies responsibility for bills such as:
Electricity, gas, and water
Internet or phone services
Council tax
Typically, tenants are responsible for these costs unless the landlord specifies otherwise in the agreement.
Access to the property
This clause explains the landlord’s right to access the property, including:
Notice requirements (for example, 24-48 hours notice for non-emergency visits)
Permitted reasons for access, such as inspections, repairs, or showing the property to prospective tenants.
End-of-tenancy obligations
This clause outlines the tenant’s responsibilities when leaving the property, such as:
Cleaning the property to a specified standard
Returning all keys to the landlord
Addressing any damages or outstanding rent
What happens if you leave an AST early?
Leaving an AST tenancy early can have financial and legal implications. Tenants should always check their AST agreement to understand their obligations before deciding to leave early. Here’s what to consider:
Break clauses: Some ASTs include a break clause, allowing either party to end the tenancy early under specific conditions, such as giving two months' notice after six months of tenancy.
Negotiation with the landlord: If there’s no break clause, tenants can negotiate an early exit with the landlord. The landlord may agree if they can quickly re-let the property.
Financial liabilities: Tenants who leave without the landlord’s agreement or without a valid break clause may still be responsible for rent payments until the tenancy ends or a new tenant is found.
Damage or deposit deductions: Leaving early may result in deposit deductions if the property is damaged or insufficient notice is provided.
What’s the difference between an assured shorthold tenancy and an assured tenancy?
Although they sound similar, assured tenancies and assured shorthold tenancies differ significantly in terms of tenant and landlord rights:
Feature | Assured shorthold tenancy | Assured tenancy |
|---|---|---|
Security of tenure | Tenants can be evicted at the end of the fixed term with proper notice | Tenants have long-term security and can only be evicted under specific legal grounds |
Rent setting | Market-based rent set by the landlord | Tenants can challenge rent levels through rent assessment tribunals |
Common use | Most private rentals | Rare; typically housing associations or social housing |
Recap: The key things to know about an AST
An assured shorthold tenancy (AST) is the most common rental agreement for private landlords in England and Wales.
ASTs provide a balance of tenant security and landlord flexibility, with fixed-term and periodic options.
Some arrangements, such as company lets or resident landlords, do not qualify as ASTs.
Understanding your agreement’s clauses, notice periods, and rights can help you avoid disputes and financial issues.
FAQs
Can a landlord change an AST tenancy agreement during the term?
Only if both parties agree. Changes to terms like rent or rules must be mutually accepted.
Do AST agreements have to be in writing?
While verbal agreements can technically be ASTs, a written agreement is highly recommended for clarity and legal protection.
How much notice does a landlord need to give to end an AST?
Landlords must give at least two months’ notice using a Section 21 notice, provided the tenancy has reached its fixed term or is periodic.
Can tenants stay after an AST ends?
Yes, if neither party ends the agreement, it usually rolls over into a periodic tenancy.
What documents must a landlord provide for an AST?
Landlords must give tenants the following:
The government’s How to Rent guide
A copy of the Energy Performance Certificate (EPC)
A Gas Safety Certificate (if applicable)
Confirmation of deposit protection details
Final thoughts
An assured shorthold tenancy is the cornerstone of private renting in England and Wales. Understanding the terms of an AST, including its clauses, rights and exceptions, ensures both landlords and tenants can manage their arrangements effectively. Whether you’re drafting an agreement or signing one, being informed about ASTs can help you navigate the rental process with confidence.
Looking for help or legal support with an AST? Get a free quote and see how our landlord solicitors can help.
References
House Act 1966, AST
Model agreement for a shorthold assured tenancy from Gov.UK
Tenancy agreements: a guide for landlords from Gov.UK