A Landlord’s Guide to Assured Shorthold Tenancy (AST) – And What Comes Next
An assured shorthold tenancy—commonly referred to as an AST—is the most widespread rental agreement type in England and Wales. However, major changes are on the horizon. As part of the upcoming Renters’ Rights Bill, ASTs are being phased out. All new tenancies will soon become periodic by default, offering greater flexibility and protection for tenants and landlords alike.
This guide covers what you need to know about ASTs now—while they’re still in place—and how to prepare for the shift to periodic tenancies.
Download our Full Landlord’s Guide to ASTs
What Is an Assured Shorthold Tenancy?
An assured shorthold tenancy (AST) is a legally binding agreement between you (the landlord) and your tenant. It sets out the rights and responsibilities of both parties, covering rent amounts, tenancy length, and conditions for ending or renewing the contract. ASTs are governed by the Housing Act 1988, which remains the primary legislation for rental agreements in the private sector.
To qualify as an AST:
- The tenant must be an individual.
- The property must be their primary residence.
- The landlord must not live in the property.
- The tenancy started on or after 15 January 1989
- The annual rent must fall between £250 and £100,000.
Most current AST rentals start with a fixed-term agreement (typically 6 or 12 months) and become periodic if renewed informally. However, under the new legislation, all new tenancies will start as periodic, with no fixed term.
What’s Included in an AST Agreement?
Whether you’re creating an agreement yourself or using a letting agent, every AST contract must include:
- Full names of all parties involved
- Property address
- Start and end dates of tenancy
- Monthly rent amount, due date, and how it is paid
- Security deposit details and how it’s protected
- Obligations of both tenant and landlord
- Responsibilities for bills and utilities
- Notice periods for ending the tenancy
It may also include information on:
- Whether the tenancy can be ended early and the process for doing so
- Who is responsible for minor repairs (excluding those the landlord is legally obliged to handle)
- Whether the property can be sublet or lodgers allowed
This information ensures clarity for both parties and reduces legal risks. If you’re wondering “what’s an AST supposed to include?”—these are the non-negotiables.
Tenancy Deposits & Protection
For any AST rental, a security deposit (usually capped at 5 weeks’ rent) may be collected at the start of the tenancy. You must protect this deposit using one of three government-approved tenancy deposit schemes within 30 days:
- MyDeposits
- Tenancy Deposit Scheme (TDS)
- Deposit Protection Service (DPS)
You must also issue ‘prescribed information’ to the tenant—explaining where and how the deposit is held.
Failure to comply may lead to fines and restrict your ability to serve an eviction notice under Section 21.
Ending or Renewing a Tenancy
Once the fixed term ends, your assured shorthold tenancy automatically converts into a periodic tenancy unless a new contract is signed. You can:
- Renew the AST for another fixed term
- Allow it to roll into a monthly periodic tenancy
To end the tenancy, landlords can issue a Section 21 notice (no fault) or a Section 8 notice (with grounds such as unpaid rent).
However, under the proposed Renters’ Rights Bill, fixed-term ASTs will be eliminated and replaced with open-ended periodic tenancies. Section 21 ‘no fault’ evictions will also be abolished. To stay compliant, read our full Renters’ Reform summary.
Legal Responsibilities for Landlords
With an assured shorthold tenancy—or any private tenancy—you must ensure:
- Annual gas safety checks are completed
- The tenant receives a valid Energy Performance Certificate (EPC)
- Electrical safety checks are performed every 5 years
- The tenant receives the government-issued ‘How to Rent’ guide
Neglecting these obligations can invalidate your right to regain possession of the property and may result in legal action.
AST vs Short Assured Tenancy
It’s common to confuse assured shorthold tenancy with short assured tenancy. However, the latter only applied in Scotland and was replaced by the Private Residential Tenancy (PRT) in December 2017. In England, ASTs have been the standard tenancy agreement for private rentals—but that is now changing under the Renters’ Rights Bill.
If you’ve been researching tenancy types, make sure you’re referring to the correct legal jurisdiction.
Assured Shorthold Tenancy – FAQs
What type of tenancy is an AST?
An AST is a type of assured tenancy designed for residential lettings where the tenant has exclusive use of the property. It has been the most common form of tenancy agreement in the private rental sector in England and Wales. However, this is now being phased out in favour of periodic tenancies under the new Renters’ Rights Bill.
What is the purpose of an AST?
The purpose of an AST is to provide a clear, legally binding agreement that outlines both the landlord’s and tenant’s rights and obligations. It offers flexibility for landlords to regain possession while ensuring tenants have security during the fixed term. These agreements are now being replaced by periodic tenancies as part of reforms aimed at improving renters’ rights.
What’s an AST (Assured Shorthold Tenancy)?
An AST (Assured Shorthold Tenancy) is a legal agreement used by private landlords in England and Wales. It grants tenants the right to occupy a property for a fixed or periodic term. Under upcoming reforms, ASTs will no longer be used for new tenancies.
Is a short assured tenancy the same as an AST?
No, a short assured tenancy was a tenancy type specific to Scotland and was phased out in 2017. It has been replaced by the Private Residential Tenancy in Scotland. ASTs are now also being phased out in England.
What happens when an AST rental ends?
Once the fixed term ends, the tenancy usually becomes a statutory periodic tenancy if no new contract is signed. This means the tenancy continues on a rolling monthly basis with the same terms. Under the new legislation, all new tenancies will begin as periodic from the start.
Can I increase rent during a fixed term?
Rent can only be increased during a fixed term if the tenancy agreement includes a rent review clause. If not, any rent change must wait until the fixed term expires. In periodic tenancies, landlords can increase rent with at least one month’s written notice.
Do I need to protect the deposit for an Assured Shorthold Tenancy?
Yes, landlords are legally required to place the deposit into a government-approved tenancy deposit scheme within 30 days. You must also provide tenants with the scheme’s prescribed information. This requirement continues under the new tenancy rules.
What notice must a landlord give to end an AST?
A landlord must give a minimum of 2 months’ notice using a Section 21 notice, assuming all legal requirements have been met. Alternatively, they can issue a Section 8 notice if there are specific grounds such as rent arrears. Be aware that upcoming reforms will abolish Section 21 altogether.
Download the Full Guide
Want everything in one place? Our comprehensive PDF guide offers deeper insight into assured short term tenancy agreements, legal compliance, and your rights as a landlord.
Need Expert Advice?
Need advice tailored to your property or portfolio? Get in touch with SevenLiving for expert guidance on transitioning from AST rentals and staying ahead of legal changes.