An Assured Shorthold Tenancy (AST) is the most common type of rental agreement in the UK, governing the relationship between landlords and tenants. It outlines the rights and responsibilities of both parties and offers legal protections on both sides. Understanding how ASTs work is essential for anyone renting or letting out a property in the UK, as it influences the duration of the tenancy, notice periods, rent payments, and eviction processes.
An Assured Shorthold Tenancy (AST) is a fixed-term tenancy where the tenant has the right to live in a property for a specified period, usually a minimum of six months. This agreement is commonly used for residential rental properties and provides protection to both landlords and tenants.
Under an AST, the tenant is entitled to live in the property for the duration of the agreed term, provided they meet their responsibilities, such as paying rent and maintaining the property. Meanwhile, the landlord retains the right to regain possession of the property at the end of the tenancy, provided the correct legal procedures are followed.
Fixed-Term or Periodic Tenancy:
Rent Payments: Rent is agreed upon at the start of the tenancy and must be paid on time. While rent can be reviewed after the initial fixed term, any increase must be fair and in line with market conditions. Both parties should clearly understand the rent due dates and any penalties for late payments.
Deposits and Deposit Protection:
Landlord’s Responsibilities:
Tenant’s Responsibilities:
Right to Possession: At the end of the tenancy, the landlord has the right to regain possession of the property, provided they follow the correct legal process. However, they must give proper notice, usually a Section 21 notice or Section 8 notice (explained below).
Tenants in an AST agreement are granted several important rights:
Right to Live Peacefully: As long as the tenant abides by the terms of the tenancy, they have the right to live in the property without disturbance from the landlord.
Protection from Unfair Eviction: Tenants cannot be evicted without following the proper legal process. Landlords must provide sufficient notice before terminating the tenancy.
Deposit Protection: The tenant's deposit must be protected in an approved scheme, and at the end of the tenancy, the deposit should be returned in full unless there are valid reasons for deductions, such as unpaid rent or damages.
Notice Periods: If the landlord wants to end the tenancy, they must give the tenant appropriate notice. For example, a Section 21 notice (for no-fault evictions) must provide at least two months' notice, while a Section 8 notice (used when the tenant has breached the terms of the tenancy) requires varying notice depending on the severity of the breach.
Landlords also enjoy certain rights under an AST, including:
Right to Rent: Landlords are entitled to receive rent as outlined in the tenancy agreement. If the tenant fails to pay, the landlord can take legal action to recover unpaid rent or, in severe cases, pursue eviction through a Section 8 notice.
Right to Repossess: After the fixed term ends, landlords can issue a Section 21 notice to repossess the property without giving a specific reason, provided they give the correct amount of notice and follow legal procedures.
Right to Property Maintenance: While tenants have the right to live peacefully, landlords are allowed to inspect the property, provided they give adequate notice (usually 24 hours), to ensure the property is being maintained.
There are two main types of notice that landlords can serve under an AST agreement if they wish to regain possession of their property:
Section 21 Notice (No-Fault Eviction): This allows landlords to evict tenants at the end of the fixed term or during a periodic tenancy without providing a specific reason. However, the landlord must give at least two months’ notice. No-fault evictions cannot be issued during the fixed-term tenancy, and there are certain restrictions, such as failing to protect the tenant’s deposit.
Section 8 Notice (Fault-Based Eviction): If the tenant breaches the terms of the tenancy, such as by failing to pay rent or causing damage to the property, the landlord can serve a Section 8 notice. The notice period can range from 2 weeks to 2 months, depending on the nature of the breach. The landlord must also prove the breach in court if the tenant disputes the eviction.
At Fraser Bond, we offer expert property management and advisory services to help both tenants and landlords navigate the complexities of Assured Shorthold Tenancies. Our services include:
Tenancy Agreement Drafting: We ensure that all AST agreements are clear, legally sound, and protect the rights of both landlords and tenants.
Tenant Sourcing and Screening: For landlords, we provide a comprehensive tenant sourcing and screening process to find reliable tenants who will meet the terms of the AST agreement.
Deposit Protection and Dispute Resolution: We guide landlords in protecting deposits and assist in resolving any disputes that arise at the end of the tenancy.
Legal Support and Eviction Advice: For landlords needing to serve notices or handle evictions, we offer legal advice and support to ensure all procedures are followed correctly.
The Assured Shorthold Tenancy (AST) is the cornerstone of rental agreements in the UK, providing a structured framework for both landlords and tenants. Understanding the terms of an AST, from deposit protection to notice periods, is essential to ensuring a smooth tenancy. Whether you’re renting for the first time or letting out a property, Fraser Bond can provide the guidance you need to manage your rental agreements effectively.
