Assured Shorthold Tenancies are one of the key agreements you’re likely to encounter when relocating to the UK. Understanding the rental landscape is just as important as adjusting to a new workplace, and ASTs form the backbone of most private rentals in England and Wales. They provide a structured way for landlords and tenants to manage their rights and responsibilities. For HR teams handling employee relocations, knowing how ASTs work helps ensure a smooth transition into housing, reducing potential headaches for both the employee and the organisation.
Whether you’re an employee moving into your new UK home or an HR professional overseeing relocations, understanding Assured Shorthold Tenancies is essential to making informed decisions about rental agreements. ASTs offer tenants significant security: landlords can only end the tenancy during the fixed term under specific circumstances, such as rent arrears or breach of contract, which highlights the stability these agreements provide. So, let’s break it down, from key rights like security of tenure to the protections ASTs offer.
Definition of an AST
An Assured Shorthold Tenancy is a type of tenancy agreement where the tenant rents a property from a landlord for a specified period, typically a minimum of six months but often for one or two years.
Key features of an AST include:
- Security of Tenure: Tenants have the right to remain in the property until the landlord serves notice to end the tenancy, provided they have adhered to the terms of the tenancy. Landlords must follow legal procedures to evict tenants, which includes providing the correct notice and, if necessary, obtaining a court order if the tenant does not leave voluntarily.
- Rent Control: The landlord cannot increase the rent during the initial fixed term unless stated in the agreement.
- Notice Period: Both parties must provide a notice period before the tenancy can be terminated. This period is usually one or two months, depending on the terms of the tenancy agreement.
- Deposit Protection: Landlords are legally required to protect a tenant’s deposit in a government-approved scheme and provide details of this within 30 days of receiving the deposit. This ensures the tenant’s deposit is safeguarded and can help resolve disputes at the end of the tenancy.
Tenant Responsibilities
Tenants also have key responsibilities under an AST. These include paying rent on time, keeping the property in good condition, and adhering to any other specific terms outlined in the agreement. Failing to meet these responsibilities could affect a tenant’s rights and security within the tenancy.
Periodic Tenancies
If no new agreement is signed at the end of the fixed term, the tenancy will often automatically convert into a ‘periodic tenancy,’ where it continues on a month-to-month basis. In this case, tenants still have the same protections as before, but both parties will need to give notice if they want to end the tenancy.
When is a Tenancy Not an Assured Shorthold Tenancy?
Not all tenancies qualify as Assured Shorthold Tenancies. A tenancy is not an AST if:
- It began before January 15, 1989.
- The annual rent exceeds £100,000 or is less than £250 (£1,000 in London).
- It’s a business tenancy or for licenced premises.
- The property is a holiday let.
- The landlord is a local council.
- The landlord lives in the same property as the tenant (subject to certain conditions).
Common Law Tenancies: These tenancies apply when a tenancy agreement doesn’t meet the criteria for an AST. Common law tenancies are not governed by the Housing Act 1988, meaning tenants have fewer protections regarding eviction and deposit protection.
Comparison with Other Tenancy Types
- Assured Tenancy: This type offers more security to tenants. Unlike ASTs, landlords cannot automatically regain possession at the end of the fixed term. These were common between 1989 and 1997 but are now primarily used by housing associations.
- Excluded Tenancy: This applies when a tenant shares living space with their landlord. Tenants have fewer rights, and eviction processes are simpler for landlords.
- Regulated Tenancy: Used before 1989, these offer strong tenant protections, including the right to a “fair rent” set by the Valuation Office Agency.
- Company Lets: In a company let, a business rents the property rather than an individual. This type of agreement does not qualify as an AST because the tenant is not occupying the property as their principal home. Instead, it’s often used to provide accommodation for employees. Since this is a commercial arrangement, tenants in company lets do not have the same rights and protections under the Housing Act 1988 as those in an AST.
Final Thoughts on Assured Shorthold Tenancies
Assured Shorthold Tenancies are the most common choice for private rentals in England and Wales, offering a balance of flexibility and security for tenants. For employees relocating to the UK and HR teams supporting the move, understanding the rights and protections provided by ASTs is essential for ensuring a smooth and secure transition into housing. If there’s any uncertainty about tenancy agreements or specific circumstances, seeking advice from a legal professional or housing expert can help clarify the best approach for your situation.
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