(Article updated July 2025)

Assured Shorthold Tenancy Agreements, or ASTs for short, represent the most common type of tenancy in the private rented sector in England and Wales. It was established under the Housing Act 1988 and improved under the Housing Act 1996. This agreement serves as the legal framework, defining the rights, responsibilities, and processes involved between the landlord and tenant.

In this article, you’ll discover the basics of an Assured Shorthold Tenancy (AST) agreement and what role it plays in protecting the rights of both landlords and tenants. You’ll receive an update on ASTs and how these are likely to change in response to the constantly evolving regulations in the London private rental market.

What is an Assured Shorthold Tenancy?

An Assured Shorthold Tenancy agreement (formerly known as an Assured Shorthold Tenancy or AST) allows a landlord to rent out their property to a tenant while retaining the legal right to reclaim possession of the property. This repossession typically occurs after a fixed-term tenancy ends or following proper notice.

Tenancy agreements are only considered as ASTs if they meet the following conditions:

• The amount of rent ranges from £250 (or £ 1,000 in Greater London) to £100,000 yearly
• The tenants are individuals (not corporations or organisations, e.g. companies).
• The property will serve as the tenant’s primary residence.
• The landlord does not live in the rented property.

Assured shorthold tenancies are considered a legally binding contract between landlords (or letting agents) and tenants. This agreement outlines the tenant’s right to live in the property. It also details the respective responsibilities of the landlord and the tenant in maintaining the property. It ensures fairness, deposit protection, safety measures and legal routes in the event of disputes.

ASTs are essential because they provide tenants, landlords, and letting agents with peace of mind regarding the tenancy agreement. It’s not just a legal foundation that will protect both sides, specifically when it comes to rent increases and evictions. ASTs also assure tenants of their rights and identify important clauses that will reduce misunderstandings or future disputes.

Key Features of an AST

Assured Shorthold Tenancy Agreements are only effective if they have the correct details. You can’t enforce your rights if it’s not specified in the AST. To ensure the complete protection of your rights (and the tenant’s, as well), make sure the agreement has the following features:

Tenant and landlord data

Clearly state the names and addresses of both landlord and tenant as the principal signatories in the AST.

Fixed periodic terms

ASTs are periodic tenancy agreements, typically covering a period of 6 months to a year. The term tenancy should specify the start and end dates of the fixed-term tenancies. After the term ends, the landlord and tenant can choose to renew their tenancy agreement.

Rent details

This includes the rent amount, due date, late payment penalties, and other relevant information. Ensure this aligns with current regulations (e.g., the Renters’ Rights Bill). The AST should also include a clause for rent reviews. This means landlords can exercise their right to change the rental fee as long as it’s within reason (e.g., an average rental price increase).

Deposit protection

The law requires landlords to register the tenant’s deposit in a tenancy deposit protection (TDP) scheme. The amount is capped at 5-6 weeks’ worth of rent. This should be done within 30 days to ensure compliance. The details of the TDP scheme should be included in the AST.

Compliance information

Landlords have numerous legal obligations, including gas and electrical safety, EPCs, and more. These should be included in the AST, specifically the validity of the checks and certificates. You can also include the latest housing legislation laws so the tenant will see how compliant the property is.

Notice periods

This refers to Section 21 (no-fault eviction) or Section 8 (once the Renters’ Rights Bill is passed into law). These should be detailed so tenants will know when notices of eviction can be issued. It should also indicate the notice period that tenants must follow if they decide to terminate the agreement.

Include in the AST the process by which tenants can move in after their tenancy started or move out after it ended.

Depending on specific circumstances, the AST may include clauses for subletting, pet ownership, decorating, and shared areas, among others. Ensure that these are clearly stated and legally accurate, leaving no room for misunderstanding.

FAQs About Assured Shorthold Tenancy Agreements

Here are common questions asked about Assured Shorthold Tenancy Agreements.

How does an Assured Shorthold Tenancy differ from other types of rental agreements?

An AST is made directly between a landlord and an individual, unlike rent-to-rent agreements or corporate lets. The agreement is usually for six months or more. These specify legal obligations that include the provision of safety certificates, proof of deposit protection schemes and eviction notice procedures.

Are ASTs legally required in London?

Yes, they are legally required. All private landlords and letting agents in London should use an Assured Shorthold Tenancy Agreement as the standard for the tenancy. When the AST is written correctly, it ensures both the landlord and the tenants understand their rights and responsibilities. It also offers legal protection and a clear structure that will avoid costly misunderstandings in the event of a dispute.

Can I include rent increases in an Assured Shorthold Tenancy Agreement?

Yes, this can be under the rent review clause. This outlines how and when a landlord can review the rent and decide to increase it. This clause must comply carefully with current legislation and specify the frequency of the increase. It should also state what would happen in case the tenant does not want to accept the rent increase, such as the length of the notice period, so that they can find alternative accommodations.

How do I protect the tenant’s deposit under an AST in England?

As the law requires, landlords must protect tenants’ deposits through a government-approved Tenancy Deposit Protection scheme. This should be accomplished within 30 days of receipt. This applies to all ASTs across England, including London. The type of TDP scheme (insured or custodial) should be specified in the AST, including where the deposit is held.

Can I deduct from the deposit at the end of the AST?

Yes, but it should only be for a valid reason, such as property damage (beyond normal wear and tear), unpaid rent, etc. These deductions must be documented and backed by an inventory report. The tenant has the right to dispute these deductions, so make sure there’s proof. Use the free dispute resolution service of the TDP scheme to settle the issue.

Need Help with Your Property’s AST Agreement?

Assured Shorthold Tenancy Agreements offer a legal framework that protects landlords and tenants. Ensure your AST is fully compliant with the latest regulations to ensure it’s legally binding and will work in your favour in the event of a dispute.

If you’re unsure of how to create AST agreements for your rental property, get in touch with a professional property management company.

At City Relay, we handle drafting contractual agreements, including ASTs. We use our Goodlord portal to create contracts, ensuring they are automatically and regularly updated with new regulations and legislation.

Let us worry about compliance with the latest rules and take the stress out of managing your rental property. Get a free rental income estimate and know more about our service offers.