An Introduction to Assured Shorthold Tenancy Agreements
An Assured Shorthold Tenancy or AST for short, is the most usual type of tenancy agreement used in residential letting in England today.
Since 1997, all new tenancies are automatically assured shorthold tenancies.
In Wales, since December 1st 2022, they have been renamed to Standard Occupation Contracts.
In Scotland, since December 1st 2017, they have been called Private Residential Tenancies.
This article is focused on ASTs in England, so what exactly IS an Assured Shorthold Tenancy?
Below, we look at what they involve and how you can use this kind of tenancy agreement correctly for your UK property deals.
Article Updated: August 2025
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by Robert Jones, Founder of Property Investments UK
With two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
The Basic Principles of an AST
The basic principle behind an AST – and probably why it is called assured – is that it offers some security of tenure to the tenant, subject to some limitations. This means that as long as the tenant pays the rent and abides by the conditions of the tenancy they are entitled to occupy the property for the agreed period – or 'term' as it is known.
That assurance works both ways too. It means that the landlord is entitled to get their property back at the end of term with the tenant having no further rights of occupation.
When Should an AST be Used?
The law sets down when an AST can and cannot be used.
In summary, ASTs can be used:
- By private landlords if it is the tenants main accommodation
- By private landlords if they do not live at the property
- By housing associations
In summary, ASTs can't be used:
- For business tenancies
- Pubs
- Holiday lets
- Lodgers living in your home
- For homes where the rent is less than £250 a year (or £1,000 in London buy to let properties)
- For homes where the rent is more than £100,00 a year
How Long is an AST?
The word ‘shorthold’ is slightly misleading here. ASTs are not necessarily short. New ASTs are mostly granted for fixed terms of 6 or 12 months.
When the fixed term period expires the landlord can either grant the tenant another fixed term AST (assuming they wish to) or allow the tenancy to continue on a month-by-month basis. In this case, it becomes a periodic tenancy.
A new change to the law is going through the House of Commons with Government and will soon change how ASTs work including periodic tenancies. For the latest updates on the progress of the Renters Rights Bill see here.
Assured Shorthold Tenancy Agreement Template
There is no single, official wording for what an AST should include. Different ASTs, used by different landlords, can vary. But rather than trying to create your own it can save time and hassle to use a ready-made template AST from a reliable source.
- The official UK Government site provides a free suggested model agreement for an AST here.
- The NRLA (National Residential Landlords Association)provides templates for ASTs and other tenancy documents to paying members here.
What Responsibilities Do You Have as a Landlord
As a landlord, when you enter into an agreement with a tenant, there are a number of things you are legally obligated to do, in addition to making sure you have provided a healthy home and considered tenants health and safety, and a number of things, while not legally required which are, nonetheless, best practice.
Here we will run through a number of them, but please note that this is not an exhaustive list.
1. Taking References
Although there is no legal requirement to do so, it is a good idea to take references when using an AST. This is to ensure that the person who will be named in the AST is who they say they are. It is also an opportunity to check their credit history, employment status and income.
2. Right to Rent
Right to Rent means you must carry out a check to ensure that your tenant is legally entitled to be resident in the UK and to rent property here. All tenants of adult age must be checked. It is illegal to carry out the checks only on those whom you know or suspect are from abroad or are non-British citizens.
3. Tenancy Deposit Protection
Assuming that you are taking a deposit from your tenant, it must be protected in a Government-approved tenancy deposit scheme. If it is not, you will not be able to evict the tenant should it be necessary.
This Government site gives details of tenancy deposit protection schemes which you can use.
There are also other options instead of upfront deposits, like a deposit-free renting insurance scheme. This can provide a lower-cost option for tenants who are looking for ways to reduce the high costs of moving home.
4. Safety Certificates and Energy Performance Certificates (EPCs)
To ensure the home is safe, landlords need to provide:
- An annual Gas safety certificate if you have a gas boiler
- An electrical installation condition report every 5 years
- An EPC every 10 years to ensure the property meets the upcoming EPC C rating requirements
5. Inventories
Although there is no legal requirement to do so, it is sensible to make an inventory of the contents and a report of the condition of a property before it is handed over to a tenant. Indeed, many standard AST documents refer to an inventory in the wording and allow for this to be attached as an appendix.
6. The 'How to Rent' Guide
Landlords must now give new tenants a copy of the latest version of the Government’s official How To Rent Guide. If the tenant does not receive this guide, it may be difficult to evict the tenant should it be necessary.
Periodic tenancies
Historically when an AST reaches the end of its term, rather than being renewed for another fixed term of, say, 6 or 12 months, assuming no notice has been given by either party, the tenancy will continue as a periodic tenancy, usually by the mutual agreement of both parties, which is simply a rolling month to month agreement.
When the Renters Rights Bill comes into law, periodic tenancies will be the normal length for ASTs. Full details are here on how the Renters Rights Bill affects periodic tenancies and removes the fixed term.
This is a major change to housing in England and includes a number of improvements to the way in which ASTs operate.
Housing laws continue to evolve in the UK to help improve housing and homes for landlords and tenants, these could impact leaseholders like the landlord and tenant covenants act 1995, social housing like the decent homes standard and property owners with squatters rights. As the landscape is constantly changing it is important to keep up to date and regularly speak with your letting agent on any changes you need to implement to stay ahead and keep compliant with your Assured Shorthold Tenancy agreements.