Tenancy Agreement Guide — UK Assured Shorthold Tenancies Explained (2026)

Whether you are a landlord letting out a flat or a tenant moving in, a clear written tenancy agreement is the foundation of a secure letting. Without one, disputes can arise over everything from rent increases to the return of the deposit. This guide explains how residential tenancies work in England and Wales, and what your agreement should cover. It is general information, not legal advice.

What is an assured shorthold tenancy (AST)?

Most private residential lettings in England and Wales are assured shorthold tenancies under the Housing Act 1988. An AST is the default tenancy where a private landlord lets a property to a tenant who lives there as their only or main home, subject to the rules in that Act. You can choose a fixed-term AST (for example, six or twelve months) or a periodic AST that runs from one rent period to the next. When a fixed term ends and nothing else is agreed, the tenancy usually rolls on as a statutory periodic tenancy.

Do I need a written tenancy agreement?

A tenancy can exist even without anything in writing, but a written agreement is strongly recommended: a verbal arrangement is very hard to prove if a dispute arises. A written agreement records the rent, the term, who is responsible for what, and the conditions both sides have agreed — protecting landlord and tenant alike. By law a landlord must also provide certain information, including the tenant’s rights and responsibilities, at the outset.

Deposit protection

If you take a tenancy deposit for an AST, you must protect it in a government-authorised tenancy deposit scheme (such as the DPS, MyDeposits or the TDS) within 30 days of receiving it, and give the tenant the prescribed information about where it is held. Failing to protect the deposit can lead to a penalty of up to three times the deposit and can prevent you from using a Section 21 notice. Record the deposit terms clearly — a separate rent deposit deed is useful where a larger sum or a guarantor is involved.

Ending a tenancy

Landlords generally end an AST using one of two routes. A Section 21 notice (the so-called “no-fault” route) requires the correct notice period and that prescribed obligations — deposit protection, a valid gas safety certificate, an EPC and the How to Rent guide — have been met. A Section 8 notice is used where the tenant is in breach, for example serious rent arrears. The Renters’ Rights reforms are changing this area, so check the current rules before serving any notice. A tenant ending a periodic tenancy normally gives at least one rent period’s notice in writing.

What should a tenancy agreement contain?

• The parties — full names and addresses of the landlord (or agent) and every tenant
• The property — address, what is included, and any shared areas
• The term — fixed term or periodic, and the start date
• Rent — amount, when and how it is paid, and how increases are handled
• Deposit — amount (capped at five weeks’ rent where annual rent is under £50,000) and which scheme protects it
• Repairs and maintenance — the landlord’s statutory repairing obligations and the tenant’s day-to-day duties
• House rules — pets, smoking, subletting and guests
• An inventory — record the condition of the property and its contents

The main tenancy types

Fixed-term and periodic ASTs

The standard route for letting a self-contained home to a tenant or a household. Choose the fixed-term AST for a set period, or the periodic AST for a rolling arrangement.

Lodgers and rooms

If someone lives in your own home and shares facilities with you, they are usually a lodger (an excluded occupier) rather than an assured tenant — use a lodger agreement. For house-shares let room by room, the HMO room rental agreement is designed for houses in multiple occupation, and a student tenancy agreement suits student lets.

Companies, holidays and commercial

Letting to a business rather than an individual falls outside the AST regime — use a company let agreement. Short-stay lettings use a holiday let agreement, and letting business premises uses a commercial lease such as the office lease or a full FRI commercial lease. Where you need a guarantor for a tenant, add a tenancy guarantor agreement.

5 common tenancy mistakes

1. No written agreement — the most common and most damaging error.
2. Deposit not protected in time — protect it within 30 days and serve the prescribed information.
3. Missing safety documents — a gas safety certificate, EPC and the How to Rent guide are prerequisites for a valid Section 21.
4. No inventory — record the condition at move-in with a property inventory and photographs.
5. Unlawful rent or fees — the Tenant Fees Act restricts what you can charge, and the deposit cap applies.

How do I start?

Choose the right template — a fixed-term AST, a periodic AST, a lodger agreement or a commercial lease. Fill in the parties’ details and the agreed terms, and the agreement is ready to sign.