An Assured Shorthold Tenancy (AST) Agreement is the most common form of residential tenancy used in the private rented sector in England and Wales. Introduced by the Housing Act 1988 and made the default tenancy type by the Housing Act 1996, the AST gives landlords the right to recover possession of their property at the end of the agreed term while providing tenants with a minimum level of statutory security of tenure during that term. 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 and Wales will automatically be an AST unless it falls within one of the statutory exceptions — for example, where the annual rent exceeds £100,000, where the tenant is a company, or where the dwelling is not the tenant's only or principal home.

An AST must have a minimum fixed term of six months under the Housing Act 1988, though landlords and tenants frequently agree on 12-month or longer initial terms. After the fixed term expires, the tenancy automatically becomes a statutory periodic tenancy under section 5 of the 1988 Act unless the parties agree a new fixed term or either party serves a valid notice to end the tenancy. During the periodic phase the tenancy runs from month to month (or week to week, depending on how rent is paid) on the same terms as the original agreement.

The AST is distinct from a licence to occupy (which does not confer the same statutory protections) and from a regulated or "protected" tenancy (which applied to most private lettings created before 15 January 1989 and carries much stronger tenant security of tenure). Landlords and tenants in England and Wales should be aware that the law governing private residential tenancies has been subject to significant reform in recent years, including the Deregulation Act 2015, the Tenant Fees Act 2019, and ongoing legislative proposals under the Renters (Reform) Bill.

A written Assured Shorthold Tenancy Agreement should be used whenever a private landlord in England or Wales lets a residential property to an individual tenant as their main home, regardless of whether the landlord is an individual or a company. Although a written agreement is not strictly required by law for an AST of fewer than three years (section 52 of the Law of Property Act 1925 exempts short leases from the formal requirement for a deed), a written agreement is strongly recommended in practice for all tenancies because it clearly records the rights and obligations of both parties and significantly reduces the risk of disputes.

A formal AST is particularly important where: the monthly rent is substantial; the landlord requires a deposit (which must not exceed five weeks' rent under the Tenant Fees Act 2019 where annual rent is below £50,000); there are specific rules about pets, alterations, or subletting; or the landlord wishes to rely on a break clause or guarantor arrangement. Without a written agreement setting out these matters clearly, a landlord may find it much more difficult to enforce obligations or recover possession lawfully.

Landlords must remember that, before the tenancy commences, they are required by law to provide the tenant with: 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) pursuant to the Gas Safety (Installation and Use) Regulations 1998; an Electrical Installation Condition Report (EICR) pursuant to the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020; and the government's "How to Rent" checklist for England pursuant to the Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015. Failure to provide any of these documents prevents the landlord from serving a valid section 21 notice during the tenancy.

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 (or the landlord's managing agent) and all adult tenants who will be jointly and severally liable under the agreement, together with the full address and description of the rental property.

2. Term: The start date and end date of the fixed term, which must be at least six months. The agreement should also address what happens at the end of the fixed term — i.e., whether the parties intend the tenancy to continue as a statutory periodic tenancy or to be renewed.

3. Rent: The monthly rent amount in pounds sterling, the day of the month on which it is due, and the payment method. Under the Tenant Fees Act 2019, landlords are prohibited from charging any fees other than rent, the tenancy deposit, a holding deposit of no more than one week's rent, and certain default fees (such as interest on late rent at a rate not exceeding 3% above the Bank of England base rate, or reasonable costs for replacing lost keys).

4. Deposit: The amount of the tenancy deposit (capped at five weeks' rent where annual rent is below £50,000, or six weeks' rent where annual rent is £50,000 or more under the Tenant Fees Act 2019), the name of the government-approved scheme in which it will be protected (Deposit Protection Service, MyDeposits, or Tenancy Deposit Scheme), and the procedure for deductions at the end of the tenancy. The landlord must protect the deposit within 30 calendar days of receipt and provide the tenant with the prescribed information required by the Housing (Tenancy Deposits) (Prescribed Information) Order 2007.

5. Landlord's obligations: Statutory repairing obligations under section 11 of the Landlord and Tenant Act 1985, the obligation to keep the property fit for human habitation under the Homes (Fitness for Human Habitation) Act 2018, gas safety obligations under the Gas Safety (Installation and Use) Regulations 1998, electrical safety obligations under the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, the smoke and carbon monoxide alarm requirements under the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022, and the obligation to provide prescribed documents before the tenancy commences.

6. Tenant's obligations: Payment of rent on time, maintenance of the property in a clean and tidy condition, prohibition on subletting or alterations without consent, obligation to permit landlord access on 24 hours' notice, compliance with Right to Rent checks under the Immigration Act 2014, and notification of disrepair.

7. Ending the tenancy: Notice procedures for both parties, including the requirements for a valid section 21 notice (Form 6A) under the Deregulation Act 2015 and the grounds for a section 8 notice under Schedule 2 to the Housing Act 1988, including mandatory Ground 8 (two months' rent arrears) and discretionary grounds.

8. Optional provisions: Break clause, guarantor, pet permission, garden maintenance responsibility, and inventory procedures.

This template complies with the requirements of the Housing Act 1988 (as amended), the Housing Act 1996, the Deregulation Act 2015, the Tenant Fees Act 2019, and the Homes (Fitness for Human Habitation) Act 2018, as applicable in England and Wales.