Assured Shorthold Tenancy Agreements

Assured shorthold tenancy agreements (ASTs) are the most common type of tenancy between a landlord and a tenant. This sets out the terms that the tenant needs to comply with in respect of their occupation of the property and the landlord’s obligations in relation to repair, maintenance, insurance and securing the tenants deposit.

The main clauses of the agreement surround the term, deposit, rent payable by the tenant and the rent payment dates. If there is a deposit, it must be protected under a tenant deposit scheme.

What is an Assured Shorthold Tenancy Agreement?

An Assured Shorthold Tenancy Agreement (AST) is a type of tenancy agreement that is used in England and Wales. It is a legal agreement between a landlord and a tenant, which sets out the terms of the tenancy. ASTs are often used for private rented accommodation, such as houses or flats.

The Basic Requirements of an AST

There are some basic requirements that must be met in order for a tenancy agreement to be considered an AST:

• The tenant must be an individual and not a company.
• The property must be the tenant’s main residence.
• The rent must be below £100,000 per year.
• The tenancy must be for a fixed term of at least 6 months.

Are all tenancies assured shorthold tenancy agreements?

All tenancies granted after 28 February 1997 automatically become an assured shorthold tenancy unless notice has been provided to the tenant from the landlord. The term of these agreements usually range from 6 to 12 months and can be renewable.

Why have a tenancy agreement?

The key reason a landlord will seek to have an assured shorthold tenancy agreement in place, is that they can terminate the agreement under a section 21 notice where they do not need to provide any reasoning to the tenant.

They can also terminate under a section 8 notice if the tenant has breached one of the relevant grounds which are usually breaches of the agreement, failure to pay rent or the tenant causing a nuisance. However, the correct amount of notice needs to be provided to the tenant.

How Do Assured Shorthold Tenancies Work?

Fixed Term and Rolling Contracts

An Assured Shorthold Tenancy Agreement will usually last for a fixed term, which is typically 6 or 12 months. At the end of this fixed term, the agreement will either come to an end or be renewed for another fixed term.

If the agreement is not renewed for another fixed term, it will become a rolling contract. This means that the tenant will continue to live in the property on a month-to-month basis, until either the tenant or the landlord gives notice to end the tenancy.

Deposits

When renting a property, a landlord may ask for a deposit. This deposit is usually equal to one month’s rent (unless otherwise specified) and is held by a third-party deposit scheme for the duration of the tenancy.

At the end of the tenancy, the deposit will be returned to the tenant, provided that the property is left in a satisfactory condition and that all rent and bills have been paid.

Rent Increases

If a landlord wants to increase the rent during the fixed term of an Assured Shorthold Tenancy Agreements, they can only do so if the tenancy agreement allows for it. If the agreement does not allow for rent increases, the landlord will have to wait until the end of the fixed term before increasing the rent.

Eviction

If a tenant breaks the terms of an Assured Shorthold Tenancy Agreements, the landlord may be able to evict them. However, the landlord must follow a strict legal process in order to do so.

This process involves serving the tenant with a notice to quit, followed by a possession order from the court. If the tenant still refuses to leave the property, the landlord can apply for a warrant for eviction, which allows bailiffs to physically remove the tenant from the property.

What is the Eviction Process in the UK?

This process is assuming that the tenancy is an Assured Shorthold Tenancy agreement.
References: https://www.gov.uk/evicting-tenants

Notice

The UK Government states you must:

“Give your tenants a Section 21 notice if you want the property back after a fixed term ends. Give them a Section 8 notice if they’ve broken the terms of the tenancy.”
Find out how to give Section 21 and Section 8 notices.

Standard Possession Order

If the tenants do not leave by the date specified on the notice and they have rent arrears you can then apply for a standard possession order.

If no rent is owed and you’re not claiming for any rent arrears, then you can apply for an accelerated possession order.

Warrant for possession

If your tenants will still not leave – applying for a warrant for possession means bailiffs can remove the tenants from your property.

What do landlords need to adhere to under an AST?

There are relevant documents such as a gas safety certificate, EPC, and a electrical safety certificate that needs to be in place and served on the tenant before a landlord can serve a notice, otherwise the notice will be rendered invalid. Notice will also be invalid if it is not set out in the prescribed form or there are mistakes on the notice.

FAQs

1. Can a landlord evict a tenant without a court order?

No, a landlord must follow a strict legal process in order to evict a tenant, which involves obtaining a court order.

2. Can a tenant be evicted during the fixed term of an AST?

A tenant can only be evicted during the fixed term of an AST if they have breached the terms of the agreement.

3. What happens to the deposit at the end of the tenancy?

The deposit should be returned to the tenant, provided that the property is left in a satisfactory condition and that all rent and bills have been paid.

4. Can a landlord increase the rent during the fixed term of an AST?

A landlord can only increase the rent during the fixed term of an AST if the tenancy agreement allows for it.

5. What should I do if I have a dispute with my landlord or tenant?

The first step is to try to resolve the dispute through mediation or alternative dispute resolution. If this is unsuccessful, court action may be necessary.

To Wrap Up

Assured shorthold tenancy agreements are a common form of tenancy in the UK. It is important for both landlords and tenants to be aware of the terms of the agreement and their rights and responsibilities under it. By following the guidelines set out in this guide, both landlords and tenants can help to ensure a successful and trouble-free tenancy.

If you have any queries regarding the above, please feel free to call us on 023 8023 5979 or book a Free Consultation now.

Written by – Owen White – Trainee Solicitor

After achieving a First Class LLB Law degree at Solent University, Owen joined Lawdit and is currently supporting fee earners in the intellectual property department. Owen is also undertaking an LPC LLM at the University of Law.

When he is not working Owen spends his time playing guitar, listening to music and playing video games.

References for Assured Shorthold Tenancy Agreements

Here is a list of References we used for this article about Assured Shorthold Tenancy Agreements.

• Assured shorthold tenancy agreements (Lawdit.CO.UK)
• Tenant deposit scheme (Wikipedia.ORG)
• Assured shorthold tenancy agreement
• Section 8 notice (Wikipedia.ORG)
• Third-party deposit scheme (Wikipedia.ORG)
• https://www.gov.uk/evicting-tenants (GOV.UK)
• Notice to quit (Wikipedia.ORG)
• Standard possession order (GOV.UK)
• Find out how to give Section 21 and Section 8 notices (GOV.UK)
• Standard possession order (GOV.UK)
• Accelerated possession order (GOV.UK)
• Warrant for possession (GOV.UK)

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