Understanding Assured Shorthold Tenancies (AST) for Landlords in the UK

When renting out a property in the UK, one of the most common types of tenancy agreements is the Assured Shorthold Tenancy (AST). For landlords, it’s important to fully understand what an AST is, how it works, and the rights and responsibilities that come with it. In this blog, we’ll break down what an AST is, its key features, and how landlords can ensure they are compliant when managing this type of tenancy.

What is an Assured Shorthold Tenancy?

An Assured Shorthold Tenancy (AST) is the default type of tenancy agreement between a landlord and tenant in the UK, unless stated otherwise. It is the most common type of agreement used for private rented accommodation, and it offers landlords a balance between security and flexibility.

The AST gives tenants the right to live in the property for an agreed period of time, and it also outlines the landlord’s ability to regain possession of the property if necessary. An AST is typically used for residential tenancies and must meet specific criteria outlined by the government.

Key Features of an Assured Shorthold Tenancy

1. Duration of the Tenancy The tenancy agreement will specify the duration of the tenancy, which is usually 6 or 12 months, although other durations are possible. An AST can be a fixed-term (meaning the tenant has a set period in which they can stay) or a periodic tenancy (where the agreement automatically continues after the initial term, usually on a rolling monthly basis, if no one terminates it).

2. Security of Tenure One of the distinguishing features of an AST is that it provides tenants with some degree of security. During the term of the agreement, the tenant has the right to stay in the property, provided they meet the conditions of the tenancy. However, after the fixed term ends, the landlord may decide whether to renew the tenancy or regain possession of the property.

3. Notice Periods If either party (landlord or tenant) wishes to end the tenancy, specific notice periods must be followed:

   • For landlords: If the tenancy is periodic or the fixed term has ended, the landlord can issue a Section 21 notice to request possession of the property. The notice must give at least two months’ notice before taking further action.
   • For tenants: Tenants must give notice (usually one month) if they wish to leave the property before the fixed term ends, provided no rent arrears or other issues are present.

4. Rent Payment The rent amount and frequency are clearly stated in the AST. Rent is typically paid monthly, but it can also be agreed to be paid weekly or quarterly. If rent is not paid on time, landlords have the right to take action to recover the arrears.

5. Deposit Protection Landlords must protect the tenant’s deposit in a government-approved tenancy deposit scheme (TDP). This protects the tenant’s deposit and ensures the landlord’s ability to make deductions for damages or unpaid rent is fair and transparent.

6. Eviction Process In the event that the tenant does not adhere to the terms of the agreement (such as not paying rent or causing damage to the property), landlords can use the Section 8 notice for eviction. However, landlords must follow the legal eviction process, and a court order may be required if the tenant refuses to leave after being given notice.

Rights and Responsibilities of Landlords Under an AST

1. Maintenance and Repairs Landlords are responsible for keeping the property in good condition, ensuring that essential services (e.g., heating, water, and electricity) are safe and working. They must also address repair requests within a reasonable time frame, ensuring compliance with health and safety regulations.

2. Providing a Written Agreement Landlords should provide tenants with a written AST, which outlines the rights and responsibilities of both parties. This should include details of the rent, deposit, tenancy duration, and rules regarding the property’s use.

3. Right to Enter the Property Landlords are entitled to access the property, but they must provide at least 24 hours' notice to the tenant if they need to enter for inspections or repairs. This ensures tenants' privacy is respected while allowing landlords to maintain their property.

4. Gas Safety Certificates and EPC Landlords must ensure that all gas appliances are checked annually by a qualified engineer and a valid Gas Safety Certificate is in place. They are also required to provide tenants with an Energy Performance Certificate (EPC) at the start of the tenancy.

5. No Discrimination Under the Equality Act 2010, landlords must not discriminate against tenants based on protected characteristics such as race, gender, or disability. A tenancy agreement must be fair and equal for all tenants.

Advantages of an Assured Shorthold Tenancy for Landlords

1. Flexibility One of the major advantages of an AST for landlords is its flexibility. After the fixed term ends, the landlord has the option to either renew the tenancy, adjust the rent, or ask the tenant to leave. This allows landlords to adjust to changing circumstances.

2. Possession Rights If the tenant fails to meet the terms of the tenancy or if the landlord wishes to regain possession, the landlord has clear legal rights to serve a Section 21 notice and recover the property. This process can be faster and more straightforward than other tenancy types.

3. Security of Rent Payments Since rent is usually agreed at the beginning of the tenancy, landlords have a level of security regarding rental income for the fixed period. Additionally, the deposit protection requirement ensures that tenants can’t leave without settling any outstanding rent or damage costs.

4. Legal Protection The AST provides landlords with a legal framework for managing tenancies, offering protection for both the landlord and tenant. By complying with the rules set out in the agreement, landlords can avoid disputes and legal complications.

Things to Be Aware of

1. Section 21 Limitations The use of a Section 21 notice is sometimes subject to restrictions. For example, if the landlord has failed to provide the correct documentation (such as the gas safety certificate or EPC) at the start of the tenancy, they may not be able to use a Section 21 notice to evict the tenant.

2. Periodic Tenancies After the fixed term ends, if the tenant continues to stay in the property without renewing the lease, the tenancy automatically becomes periodic (month-to-month). Landlords must understand how to handle periodic tenancies, as eviction may require additional notice.

3. Rent Arrears If tenants fall behind on rent, landlords have legal recourse, but they must follow the correct process to resolve the situation. This can involve sending reminder notices, pursuing rent arrears through the court, or eventually seeking possession of the property.

Conclusion

An Assured Shorthold Tenancy (AST) is the most common form of tenancy agreement in the UK and offers a practical balance of protection and flexibility for both landlords and tenants. For landlords, understanding the terms and conditions of an AST is essential to ensure that they are complying with legal requirements and protecting their investment.

By providing tenants with a clear, fair agreement and adhering to their legal responsibilities, landlords can foster a positive relationship with their tenants while maintaining control over their rental properties.

If you’re a landlord considering using an AST or need more information about managing tenancies, it’s always a good idea to seek professional advice or legal support to ensure you are fully compliant with the law.

Would you like further details on tenant management or more information about other tenancy types in the UK?