Common Assured Shorthold Tenancy Agreements In England And Wales

Sometimes, due to different types of tenancies, landlords and tenants wonder if they are using the correct tenancy agreement. At Real Estate Agents London, we understand our landlords’ concerns, which is why we explain the types and clauses of Assured Shorthold Tenancy agreements. This guide will help you understand the common tenancy arrangement mostly used in England and Wales and its notice requirements.

What is Assured Shorthold Tenancy (AST) in The UK?

AST is the most common type of tenancy agreement now, used in private residential rentals in England and Wales. These tenancies were introduced in the 1988 Housing Act, but important changes were made in the Housing Act 1996, starting from 28 February 1997.

When Should An AST Be Used?

Assured Shorthold agreements are granted if you are:

• A private landlord or housing association.
• The tenancy started on or after 15 January 1989.
• The property is your tenants’ main residence.
•  You don’t live in the property.

Tenancy will not be AST if:

• The landlord is the local council.
• It started or was granted before January 15, 1989.
• The property’s rent is higher than £100,000 a year.
• The rent of homes is less than £250 a year (or £1,000 in London buy-to-let properties)
• It’s a business tenancy, holiday let, or tenancy of licensed premises.

Types Of Assured Shorthold Tenancy

There are two types of ASTs available in the United Kingdom, each having different terms and requirements:

Fixed Term AST 

These types of tenancies run for a fixed term of months or years, for example, 6 months or 12 months. During this time, tenants are legally bound to stay in the rental property and pay rent as stated in the written AST. It provides less flexibility until a break clause is included in the written agreement because renters cannot leave before the fixed term ends.

Periodic (Rolling) AST

Unlike fixed-term tenancies, it runs indefinitely on a weekly or monthly basis. Once the fixed-term agreement ends, rolling contracts begin if both parties are willing to continue renting without renewing or ending the tenancy. Moreover, it has two types: statutory and contractual period tenancy. You can also read more about ending a periodic tenancy and notice requirements in our guide.

Are Assured Shorthold Tenancies Still Valid?

Under the Renters’ Rights Act, from 1 May 2026, there will be no fixed-term tenancies. If you have fixed the term AST now, it will be replaced with periodic contracts. This means you can rent homes with no fixed end dates and stay on a rolling weekly or monthly basis. Check how the Renters’ Rights Bill 2025 affects ASTs and the major changes the England’s private rented sectors can expect in 2026.

Common Clauses In An Assured Shorthold Tenancy

The agreements have clauses that help landlords and tenants understand their rights, responsibilities, and obligations towards each other and the property. Some important rental agreement conditions are:

Rent Review 

This rental clause confirms the date on which landlords can review the amount of rent you pay. Any changes must be in line with the Retail Price Index (RPI) or property, and a proper notice must be provided to the tenants. Check the best way to write a rent increase notice and how to submit it.

Subletting

“Right to sublet” means a tenant rents out a part of their rented property to another person (known as a subtenant). The subletting clause outlines specific conditions, including the right to rent,  time period, notice requirements, consent to sublet, and responsibilities and rights of each person involved. 

Pets

A pet clause states that the rental is pet-friendly, and the tenant agrees to be responsible for the damage caused by their pets or other animals. However, due to the new rental rules, tenants have the right to request to keep their domestic animals. If landlords are not willing to agree, they must provide a valid reason for rejection. 

Decoration

Tenants are legally obliged to leave the home in the same state it was at the time of move-in. They cannot decorate rooms, paint, or make improvements in the place without the owner’s approval. 

This is the reason the decorating term is included in the AST agreement that will specify their rights and obligations from the start. So, they should check this clause carefully before making any changes to the property.

Smoking

The written AST agreement clearly states that tenants or any other guests are not allowed to smoke inside the property without the landlord’s permission. If tenants ask you, you have the right to say no and explain the available areas outside the premises where they can smoke freely.

Garden and Shared Areas

Contracts often include a clause on garden or communal areas, which clarifies who is responsible for cleaning or trimming. Or you can expect some tools or equipment from property owners to maintain cleanliness. 

Conclusion

Assured Shorthold tenancy is a legally binding contract, and tenants are responsible for paying rent for the full fixed term. Ending this agreement is not possible unless it has a break clause or the landlord gives written permission. It also outlines obligations and rights of both through clear clauses. In addition, services like Guaranteed Rent help landlords generate a steady income without the stress of managing or collecting rent.

FAQs