An Assured Shorthold Tenancy (AST) is the most common type of rental agreement used by landlords and tenants in the UK. Introduced by the Housing Act 1988, an AST provides a framework that offers both landlords and tenants a balance of rights and responsibilities. Typically lasting for a fixed term of 6 to 12 months, this type of tenancy agreement is favored for its flexibility and the legal protections it offers to both parties.
Key Features of an AST
An AST can be set up for any property where the landlord does not reside, and the tenant occupies the property as their main home. There are several defining features of an AST:
- Fixed Term and Rolling Contracts: An AST usually starts with a fixed term, commonly 6 or 12 months. After this period, the tenancy can either be renewed for another fixed term or it can roll over into a periodic tenancy, which continues on a month-to-month basis.
- Rent and Deposit: The rent amount and payment terms are clearly outlined in the AST. A security deposit, usually equivalent to 4 to 5 weeks' rent, is also collected and must be protected in a government-approved Tenancy Deposit Scheme (TDS) throughout the tenancy.
- Possession Rights: Landlords have the right to regain possession of the property at the end of the fixed term by serving a Section 21 notice, provided they follow the correct legal procedures. However, they cannot evict tenants without a court order before the fixed term ends unless there is a breach of the tenancy agreement.
- Tenant Rights: Tenants under an AST have the right to occupy the property peacefully and without harassment. They are also entitled to know who their landlord is, to live in a property that is safe and in good repair, and to have their deposit returned at the end of the tenancy if there are no breaches of the tenancy agreement.
Get a copy of the governments model agreement for a shorthold assured tenancy.
Setting Up an AST
To set up an AST, the landlord and tenant must agree on the terms of the tenancy, including the rent amount, deposit, duration, and any specific conditions. The agreement should be documented in writing, although verbal agreements can also be legally binding, written agreements are strongly recommended for clarity and legal protection.
The tenancy agreement should also include information about:
- Property Maintenance: The landlord’s obligations to maintain the property in a habitable condition, and the tenant’s responsibilities for minor repairs and general upkeep.
- Utilities and Bills: Who is responsible for paying utilities and other bills such as council tax.
- Landlord’s Right of Access: The conditions under which the landlord can enter the property, typically requiring at least 24 hours’ notice and consent from the tenant.
Once the terms are agreed upon, the landlord is required to provide the tenant with certain documents, including the Energy Performance Certificate (EPC), a gas safety certificate (if applicable), and the government’s “How to Rent” guide.
Rights and Responsibilities of Landlords and Tenants
Landlord Responsibilities
- Repair Obligations: The landlord must ensure the property is safe, habitable, and well-maintained. This includes repairs to the structure, exterior, and installations for utilities such as gas, electricity, and water.
- Deposit Protection: Any deposit taken must be protected in a government-authorized tenancy deposit scheme, and the tenant must be informed of where it is held within 30 days.
- Notice Requirements: To end the tenancy, the landlord must provide the tenant with a Section 21 notice for a no-fault eviction or a Section 8 notice if the tenant has breached the agreement.
Tenant Responsibilities
- Rent Payment: The tenant must pay rent on time as per the agreement.
- Property Care: Tenants are responsible for keeping the property clean and not causing damage beyond normal wear and tear.
- Obeying Terms of the Agreement: This includes not subletting the property without permission and respecting any other conditions set out in the AST.
Ending an AST
An AST can be ended in several ways:
- At the End of the Fixed Term: The tenancy naturally ends unless renewed. The landlord can regain possession by serving a Section 21 notice, giving the tenant at least two months' notice.
- During the Tenancy: A Section 8 notice can be served if the tenant breaches the agreement, such as by failing to pay rent. The notice period for a Section 8 notice varies depending on the breach.
- Mutual Agreement: Both parties can agree to end the tenancy early, known as a surrender.
Assured Shorthold Tenancy: Conclusion
An Assured Shorthold Tenancy (AST) is the most widely used type of rental agreement in the UK, offering a structured, flexible arrangement for both landlords and tenants. It clearly outlines the rights and responsibilities of both parties, providing legal protections that help ensure a fair and balanced rental experience. Understanding the terms and conditions of an AST is crucial for both landlords and tenants to avoid disputes and ensure compliance with legal requirements.
