Tenancy Agreements
An Assured Shorthold Tenancy, also referred to as an ‘AST’ or a ‘Shorthold Tenancy’, is the most frequently used tenancy agreement in the letting of residential properties. We ensure that our agreements meet all current legislative requirements and these are constantly updated and ammended.
Assured Shorthold Tenancy Agreements are normally agreed for six months, but longer periods can be arranged and agreements are often set for up to twelve months.
All tenancies that started on or after 28th February 1997 are now automatically Assured Shorthold Tenancies, unless the required steps were followed to set up an Assured Tenancy or the circumstances are such that an Assured Shorthold Tenancy cannot be used. These circumstances include:
the property is to be let to a company,
the property is to be let as a holiday home,
the rent exceeds £25,000 per annum
The main requirement with this type of agreement is that the landlord and tenant agree on the minimum term and amount of rent. An Assured Shorthold Tenancy ensures that the tenant is protected in terms of the sum of rent. This means that the tenant has the right to challenge excessively high rent or changes in the agreed rent.
In an AST the landlord has the right to guaranteed possession after the initial six month period in accordance with the Housing Act 1988.
The Housing Act 1988 defines several main criteria for an Assured Shorthold Tenancy to be set up:
The property must be let as separate accommodation
The property must be the tenant’s main or principal home
The tenant should be an individual
However, there are some circumstances in which a shorthold tenancy cannot be used. For example, when a property is:
Being let for a very high rent (more than £25,000 per year)
Being let for a very low rent/at no cost
Being let as a holiday home
Being let to a tenant while the landlord is residing in the same property
Being let with more than two acres of agricultural land or an agricultural tenancy
Being let under a tenancy which began prior to the 15 January 1989, or which was formerly a protected tenancy
Being let to a private limited company
Owned by the Crown or a government department
Since the introduction of the Assured Shorthold Tenancy in 1997, it has become the main type of tenancy agreement used by most landlords to let residential properties.
All tenancies which started on or after 28th February 1997 are now automatically Assured Shorthold Tenancies, unless the required steps were followed to set up an Assured Tenancy.
The Housing Act 1988, revised in 1996, aimed to improve the rights of both landlord and tenant and to make letting property more appealing. The Assured Shorthold Tenancy was introduced and is now the most commonly used type of tenancy agreement.
The Housing Act 1996 gave tenants the right to question excessively high or increasing rates of rent, which resulted in a higher number of people choosing to rent properties.
Renting is now viewed by some as a more feasible and practical option, compatible with society’s increasingly flexible lifestyle choices.