Tenancy Agreement Guide — Letting a Home in England and Wales (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 reflects the law as it stands after the Renters’ Rights Act, which changed private renting substantially on 1 May 2026. It is general information, not legal advice.

What kind of tenancy will it be?

Almost every private residential letting in England is now an assured periodic tenancy. The assured shorthold tenancy (AST) that governed private renting for decades was abolished for new lettings on 1 May 2026 by the Renters’ Rights Act.

In practice this means a tenancy runs from one rent period to the next with no fixed end date, and continues until the tenant or the landlord brings it to an end. Fixed terms can no longer be created. Tenancies signed before 1 May 2026 converted to periodic tenancies automatically on that date, and any fixed term in them simply fell away. Our guide to the Renters’ Rights Act covers the transition in detail.

Do I need a written tenancy agreement?

A tenancy can exist 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, who is responsible for what, and the conditions both sides have agreed — protecting landlord and tenant alike.

Landlords must also give the tenant a written statement of the tenancy terms. This is not optional paperwork: failing to provide it on time can attract a civil penalty running to thousands of pounds, and considerably more for a repeat breach.

Deposit protection

If you take a tenancy deposit 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.

The deposit is capped at five weeks’ rent where the annual rent is under £50,000, and six weeks’ rent at or above that figure. Record the terms clearly — a separate rent deposit deed is useful where a larger sum or a guarantor is involved.

Rent increases

Rent on a periodic assured tenancy can only be increased by serving a Section 13 notice. At least two months’ notice must be given, the rent can generally only be raised once a year, and the new rent must be no higher than the open market rent for the property. A tenant who thinks the proposed rent is above market rate can challenge it at the First-tier Tribunal.

This catches out a lot of older paperwork. A clause that raises the rent automatically, or that lets the landlord review the rent without a Section 13 notice, has no effect. If your agreement contains one, it is still printed on the page but it no longer does anything.

Pets

Tenants now have a right to request permission to keep a pet. The request should be made in writing with a description of the pet, and the landlord must reply in writing within 28 days and must not unreasonably refuse. Asking for more information about the pet can extend that period.

A landlord can still say no, but the refusal has to be reasonable and supported by a practical reason — and a tenant who believes it was unreasonable can take the matter further. A blanket “no pets” clause is no longer the whole answer, so make sure your agreement sets out how a request will be handled.

Ending a tenancy

Since Section 21 was abolished, a landlord can no longer end a tenancy without giving a reason. Every possession claim now needs a ground under Section 8 of the Housing Act 1988 — for example serious rent arrears, breach of the tenancy, anti-social behaviour, or a landlord who genuinely needs to sell or move into the property. Each ground has its own notice period, and some are discretionary, meaning the court decides whether it is reasonable to make an order.

No eviction can take place without a court order. A tenant ending a periodic tenancy gives written notice in accordance with the statutory minimum notice period. Because possession is now ground-based, contemporaneous records — a signed agreement, a completed inventory, dated correspondence and an accurate rent account — matter far more than they used to.

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 — the start date, and that the tenancy runs on a periodic basis
• Rent — amount, when and how it is paid, and that increases follow the Section 13 process
• 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 — smoking, subletting and guests, and how a pet request will be handled
• An inventory — record the condition of the property and its contents

The main tenancy types

Letting a whole home

The standard route for letting a self-contained home to a tenant or a household is the periodic tenancy agreement, which runs on a rolling basis until either side gives notice.

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 assured tenancy 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.

6 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 valid gas safety certificate and an EPC are obligations in their own right, not box-ticking.
4. Raising the rent the old way — an automatic rent review clause has no effect. Use a Section 13 notice.
5. No inventory — record the condition at move-in with a property inventory and photographs. This matters more now that possession is ground-based.
6. 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 periodic tenancy agreement, a lodger agreement or a commercial lease. Fill in the parties’ details and the agreed terms, and the agreement is ready to sign.