An Assured Shorthold Tenancy (AST) Agreement is the most common form of residential tenancy in England and Wales. Introduced by the Housing Act 1988 and made the default tenancy type for private lettings by the Housing Act 1996, the AST has become the legal framework underpinning the vast majority of private rented sector agreements in England and Wales. Our template is drafted to comply with all current legislation, including the landmark Renters' Rights Act 2025.

Under section 19A of the Housing Act 1988 (as inserted by section 96 of the Housing Act 1996), any new residential tenancy granted by a private landlord in England or Wales will automatically be an Assured Shorthold Tenancy unless it falls within one of the narrow statutory exceptions — for example, where the annual rent exceeds £100,000 per year, where the tenant is a company, or where the dwelling is not the tenant's only or principal home. This automatic classification means that understanding the legal framework governing ASTs is essential for every private landlord and tenant in England and Wales.

The AST grants the tenant a right to remain in the property for the duration of the agreed fixed term, typically six or twelve months. During this period, the landlord can only recover possession if the tenant is in breach of the agreement or one of the statutory grounds for possession is made out under Schedule 2 to the Housing Act 1988. Once the fixed term expires, the tenancy automatically becomes a statutory periodic tenancy running from month to month on the same terms as the original agreement, unless a new fixed term is agreed or the tenancy is brought to an end by lawful notice.

The legal landscape for ASTs has changed significantly in recent years. The Deregulation Act 2015 introduced new pre-conditions for the service of valid section 21 possession notices, including requirements to provide prescribed documents (EPC, Gas Safety Certificate, How to Rent guide, and EICR). The Tenant Fees Act 2019 prohibited all tenant fees except rent, the tenancy deposit (capped at five or six weeks' rent), a holding deposit (capped at one week's rent), and limited default charges. Most recently, the Renters' Rights Act 2025, which received Royal Assent on 27 October 2025, has fundamentally reformed the law by abolishing section 21 'no-fault' evictions from 1 May 2026, converting all existing fixed-term ASTs to periodic tenancies on abolition day, and strengthening tenant protections in a number of other respects.

A written Assured Shorthold Tenancy Agreement should be used whenever a private landlord in England or Wales lets a residential property to an individual as their only or principal home, regardless of whether the landlord is an individual, a company, or a trust. Although a written agreement is not technically required for a short residential tenancy under section 52 of the Law of Property Act 1925 (which exempts leases of three years or fewer created at full market rent from the requirement for a deed), a written agreement is strongly recommended in every case as it records the rights and obligations of both parties clearly and is essential for resolving disputes.

A formal AST is particularly important in the following circumstances: where a significant tenancy deposit is being taken, since the landlord must comply with deposit protection legislation and the deposit cap under the Tenant Fees Act 2019; where there are specific rules about pets, alterations, subletting, or use of the property; where a guarantor arrangement is required; where a break clause is to be included; or where the landlord needs to demonstrate compliance with the prescribed document requirements for the purposes of the Renters' Rights Act 2025.

Landlords should be aware that before the tenancy commences they are legally required to provide the tenant with several prescribed documents. These include: a valid Energy Performance Certificate (EPC) with a minimum rating of E under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015; a current Gas Safety Certificate (CP12) signed by a Gas Safe registered engineer under the Gas Safety (Installation and Use) Regulations 1998 (where the property has a gas supply); an Electrical Installation Condition Report (EICR) from a qualified electrician under the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020; and the government's 'How to Rent' checklist under the Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015.

Under the Renters' Rights Act 2025, landlords will be required to provide a written tenancy agreement to every tenant at the start of the tenancy. Failure to comply with the new obligations introduced by that Act may give rise to civil penalties, a landlord's inability to serve valid possession notices, and inclusion on the new Landlord Ombudsman's database.

A properly drafted Assured Shorthold Tenancy Agreement for England and Wales should include the following key elements:

1. Parties and property: The full legal names and addresses of the landlord (and any managing agent) and all adult tenants who will be jointly and severally liable, together with the full address and a description of the rental property. All tenants must be identified because joint and several liability means each tenant is responsible for the full amount of the rent and all other obligations.

2. Term: The start date and end date of the fixed term, which must be at least six months. Under the Renters' Rights Act 2025, fixed-term tenancies will eventually be abolished and replaced with periodic tenancies, though the transitional arrangements mean that well-drafted fixed-term agreements remain useful for the immediate future.

3. Rent and permitted charges: The monthly rent amount, the due date, and the payment method. The Tenant Fees Act 2019 imposes strict limits on what a landlord may charge — only rent, the tenancy deposit, a holding deposit, and limited default charges are permitted.

4. Tenancy deposit: The amount (capped at five weeks' rent where annual rent is below £50,000, or six weeks' rent where annual rent is £50,000 or more), the name of the government-approved deposit protection scheme, and the circumstances in which deductions may be made. The landlord must protect the deposit within 30 days.

5. Landlord's obligations: Statutory repairing obligations under section 11 of the Landlord and Tenant Act 1985, fitness for human habitation under the Homes (Fitness for Human Habitation) Act 2018, gas safety obligations, electrical safety obligations, smoke and carbon monoxide alarm requirements under the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022, and the obligation to provide prescribed documents.

6. Tenant's obligations: Payment of rent, maintenance of the property, prohibition on subletting or assignment without consent, nuisance obligations, Right to Rent compliance, and obligations to notify the landlord of disrepair.

7. Access: The landlord's right of entry on at least 24 hours' written notice for inspections and repairs, and the right of emergency access without notice.

8. Pets and smoking: Clear provisions reflecting the new obligation under the Renters' Rights Act 2025 not to unreasonably refuse a tenant's written request to keep a pet.

9. Ending the tenancy: The position on possession notices following the Renters' Rights Act 2025, including the abolition of section 21 from 1 May 2026 and the grounds under which a section 8 notice may be served.

10. Governing law: England and Wales, with exclusive jurisdiction of the courts of England and Wales.