Explore Tenancy Types

Types of Tenancy Agreement in the UK

1. Assured Shorthold Tenancy (AST) — Most Common

The AST is the standard form of private tenancy in England and Wales, covering the vast majority of private rented homes. Under the Renters' Rights Act 2025, for new tenancies:

• There are no more fixed terms — all new ASTs are periodic (rolling) from day one
• The tenancy continues indefinitely until the tenant gives notice or the landlord obtains possession through Section 8
• Rent reviews can only happen once per year via the Section 13 notice procedure
• Section 21 no-fault eviction is abolished — possession requires a Section 8 ground

An AST must meet these criteria: the landlord is not a resident landlord, the property is let as the tenant's only or principal home, and annual rent is below £100,000.

2. Assured Tenancy

Assured Tenancies give tenants greater security of tenure than ASTs. They are less common in the private sector and more associated with housing associations. A landlord can only recover possession using the Section 8 grounds listed in the Housing Act 1988. Unlike ASTs, there are no mandatory grounds specific to Assured Tenancies that allow landlords to recover possession at will (such as selling the property).

3. Regulated Tenancy (Pre-1989)

Regulated tenancies were created before 15 January 1989 (when the Housing Act 1988 came into force). These tenants have very strong security of tenure under the Rent Act 1977, the right to a fair rent registered by the Rent Service, and the right to pass the tenancy on to certain family members. Very few regulated tenancies remain, but they still provide some of the strongest tenant protections in UK law.

4. Licence / Lodger Agreement

A licence is not a tenancy — it is a permission to occupy. It arises where the occupier shares the property with a resident landlord (the owner lives in the property). Lodgers have fewer rights than tenants: the landlord can typically ask them to leave with reasonable notice (as specified in the licence agreement) without needing a court order. The Tenant Fees Act 2019 and tenancy deposit protection rules do not apply to licences.

Joint Tenancies vs Individual Tenancies

In a joint tenancy, all tenants sign one agreement and are jointly and severally liable for the entire rent. If one tenant cannot pay or leaves, the remaining tenants must make up the shortfall. The tenancy can only end if all joint tenants give notice (or a court order is obtained). In an individual tenancy (common in HMOs — Houses in Multiple Occupation), each tenant has a separate agreement for their room only and is only responsible for their own rent and obligations.

Renters' Rights Act 2025: Key Changes to Tenancy Agreements

Tenants Giving Notice

Under the new periodic tenancy system, tenants can end a tenancy at any time by giving the required notice — typically 2 months in writing. The tenancy agreement should specify the notice period, but this must be reasonable. Tenants are not locked in for a minimum period under the new rules.

Landlords Ending a Tenancy

Landlords must use a Section 8 ground and serve the correct notice. After the notice period, if the tenant remains, the landlord must apply to court. The main grounds are set out in our Section 21 and Eviction Guide. There is no "guaranteed" end date for a tenancy — landlords must have a legitimate reason.

Deposit Rules: What Landlords and Tenants Need to Know

Deposit Deductions: What Is and Is Not Allowed

At the end of a tenancy, a landlord can make deductions from a deposit for: unpaid rent, damage beyond fair wear and tear, cleaning required to restore the property to its original condition, and any items on the inventory that are missing or damaged. A landlord cannot deduct for: fair wear and tear (normal use of carpets, paint, furniture over time), pre-existing damage documented in the check-in inventory, or issues that are the landlord's responsibility to repair.

A detailed check-in inventory with photographs protects both landlord and tenant by providing a clear baseline for comparison at the end of the tenancy. Disputes about deposit deductions are decided by the free adjudication service provided by the protection scheme used.

Key Clauses in Every UK Tenancy Agreement

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  Rent Amount and Due DateThe monthly or weekly rent, when it is due, how it should be paid (bank transfer is standard), and the consequences of late payment.
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  Deposit Amount and SchemeThe deposit amount (maximum 5 weeks' rent), the protection scheme used, and the circumstances in which deductions may be made.
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  Permitted UseThe property is to be used as a private residential dwelling only — not for business purposes without consent, and not for subletting without landlord approval.
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  Repair ResponsibilitiesLandlord: structure, exterior, heating, plumbing, electrical installations. Tenant: minor maintenance (changing light bulbs, keeping property clean and well-ventilated to prevent condensation).
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  Pets ClauseUnder the Renters Rights Act 2025, landlords can no longer include a blanket no-pets clause. Tenants have the right to request a pet, and landlords can only refuse on reasonable grounds (e.g. the property is unsuitable, the landlord's own leasehold prohibits pets).
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  Utilities and Council TaxStates which party is responsible for utilities (gas, electricity, water) and council tax. In most private lets, the tenant pays.
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  Notice RequirementsHow much notice either party must give to end the tenancy, and the form in which notice must be given (usually in writing).

What Is Implied Into Every Tenancy

Regardless of what the written tenancy agreement says, certain rights and obligations are implied by law into every tenancy:

• Right to quiet enjoyment: The tenant has the right to live in the property without unreasonable interference from the landlord. A landlord cannot enter without giving at least 24 hours' notice (except in emergencies).
• Landlord's duty to maintain structure and exterior under Section 11 of the Landlord and Tenant Act 1985
• Fitness for human habitation under the Homes (Fitness for Human Habitation) Act 2018
• No harassment or illegal eviction — the Protection from Eviction Act 1977 makes it a criminal offence

Unfair Terms

The Consumer Rights Act 2015 requires that terms in consumer contracts (including tenancy agreements) are fair. An unfair term is one that creates a significant imbalance between landlord and tenant to the detriment of the tenant. Common examples of potentially unfair terms include: penalty charges for late payment that exceed a genuine estimate of the landlord's loss, restrictions on who can visit the tenant, and requirements to redecorate or deep clean at end of tenancy regardless of condition. The Competition and Markets Authority (CMA) can investigate and challenge unfair terms.

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