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Tenancy Contracts & Renewals

Your tenancy agreement is a contract between you and your Landlord allowing you to live in the property as long as you pay your rent and follow the rules. 

Assured Shorthold Tenancy (AST)

The most common form of tenancy agreement is an Assured Shorthold Tenancy (AST).  

A tenancy can be an AST if the following applies: 

  • The property being rented is private
  • The tenancy started on or after 15 January 1989
  • The property is the Tenant's main accommodation 
  • The Landlord doesn’t live in the property 

A tenancy can’t be an AST if:

  • It began or was agreed before 15 January 1989
  • The rent is more than £100,000 a year 
  • The rent is less than £250 a year (less than £1,000 in London) 
  • It’s a business tenancy or tenancy of licensed premises
  • The property is a holiday let
  • The Landlord is a local council 

An AST should include the following information:

  • The names of all people involved
  • The rental price and how it’s paid
  • Information on how and when the rent will be reviewed
  • The deposit amount and how it will be protected
  • Details of when the deposit can be fully or partly withheld (for example to repair any damage caused)
  • The property address
  • The start and end date of the tenancy
  • Any Tenant or Landlord obligations 
  • An outline of bills the Tenant is responsible for 

Renewal Options

The initial tenancy agreement (AST) will be for a fixed term, typically between 6 months to 3 years. At the end of this initial fixed term the option is to renew the agreement for another fixed term, or to let the tenancy naturally become a ‘periodic tenancy’ (one that runs, usually from month to month, on the same terms and conditions as before). 

Benefits of a Periodic Tenancy

A periodic tenancy gives more flexibility to both Tenant and Landlord. 

The Tenant need only give one month’s notice to the Landlord and the Landlord two months notice to the Tenant. 

Benefits of Fixed Term Tenancies 

A fixed term tenancy gives more security to both parties in that the tenancy will run for a fixed period of time on the same conditions. For example, the Landlord will not be able to increase the rent midway through a fixed term tenancy.