Assured shorthold tenancy (AST) explained: What UK renters and landlords should know

Key transfer during a signing transaction at a table

If you’re renting a property or letting one out in the UK, chances are you’ve come across the term assured shorthold tenancy, or AST. It’s the most common type of rental agreement, but that doesn’t mean everyone fully understands how it works. 

Let’s walk through what ASTs really mean, what’s changed in 2025, and what both renters and landlords should know to stay informed and confident. 

What is an assured shorthold tenancy (AST)? 

An assured shorthold tenancy is the standard tenancy agreement in the UK for most privately rented properties. Introduced under the Housing Act 1988, it’s typically used when: 

  • The tenant is renting the property as their main home 
  • The landlord does not live in the same property 
  • The tenancy started after 28 February 1997 
  • The annual rent is less than £100,000 

The AST agreement outlines the key terms of the tenancy, such as rent, length of stay, notice periods, and what’s expected from both parties. It provides structure and protection for tenants and landlords alike. 

Related: The impact of inflation on UK rental prices in 2025 

Key features of an AST 

Most ASTs start with a fixed term tenancy, commonly six or twelve months. After this, if no new contract is signed, it often becomes a periodic tenancy, which rolls on a weekly or monthly basis depending on how rent is paid. 

Some ASTs include a break clause tenancy option, allowing either the tenant or landlord to end the agreement early, typically after a certain period. 

Other important features include: 

  • Clearly defined rent amount and payment dates 
  • Clauses for rent reviews or increases 
  • Rules about pets, subletting, or smoking 
  • Deposit terms, including protection under a government-approved deposit protection scheme 

Having a written agreement is always best, even if the tenancy is straightforward. It helps prevent misunderstandings down the line. 

Landlord and tenant rights and responsibilities 

Knowing where you stand is crucial in any tenancy. Tenant rights in the UK include the right to: 

  • Live in a safe, well-maintained home 
  • Have your deposit protected in a registered scheme 
  • Receive proper notice before eviction 
  • Challenge unfair rent or charges 

Landlord responsibilities in the UK include: 

  • Ensuring the property meets safety and repair standards 
  • Providing key documents, such as the EPC and How to Rent guide 
  • Protecting the tenant’s deposit correctly 
  • Carrying out necessary repairs and maintenance 

Clear communication, written records, and mutual respect go a long way in making the rental experience smoother for everyone involved. 

Related: What is subletting? A complete guide for landlords’ sand tenants  

Changes to ASTs  

This year has brought some big changes to the private rental sector. One of the most talked-about reforms is the removal of the Section 21 notice. Often called the “no-fault eviction,” Section 21 allowed landlords to end a tenancy without giving a reason, once the fixed term ended. 

From 2025, this type of notice is being phased out as part of broader rental reforms. The goal is to provide more security for tenants while still protecting the rights of landlords. 

Other updates include: 

  • Stricter minimum standards for rental property conditions 
  • Faster resolution of disputes through an independent ombudsman 
  • Greater emphasis on fair tenancy agreement terms and clarity around rent increases 

These changes mean that both landlords and tenants need to stay up to date with how the law affects AST agreements in the UK. 

Common misunderstandings 

Even with a written agreement, some things can still cause confusion. Here are a few common misconceptions: 

  • If your fixed term ends but you remain in the property, you’re not overstaying. You’re now likely in a periodic tenancy, which is still legal and protected. 
  • All deposits, even for verbal agreements, must be placed in a deposit protection scheme within 30 days of receipt. 
  • You can’t simply leave a tenancy early unless your contract includes a break clause, or your landlord agrees to an early surrender. 

Misunderstandings like these often lead to unnecessary tension, so it’s worth checking your agreement or seeking advice before making decisions. 

Tips for landlords and tenants 

For tenants: 

  • Read the agreement carefully before signing 
  • Keep proof of rent payments and communications 
  • Report repairs or maintenance issues early 

For landlords: 

  • Use a clear and legally sound AST agreement 
  • Make sure deposits are protected in a recognised scheme 
  • Stay informed about legal changes, especially around Section 21 and property standards 

Good preparation helps prevent problems and sets up a smoother tenancy for everyone. 

Related: How to prepare for a rental credit check 

Know your agreement, enjoy your tenancy 

An assured shorthold tenancy is the backbone of most rental arrangements in the UK. It outlines what’s expected, offers protection for both sides, and plays a vital role in keeping the rental market fair and stable. 

Whether you’re a landlord preparing to let a property or a tenant moving into your next home, understanding your AST agreement helps you make better decisions and avoid unnecessary stress.  

Need tailored support? Why not contact your local Martin & Co branch today? 

Stay in the loop

Subscribe to our newsletter to receive regular property updates.

Do you have a property to Sell or Let?

Book a free sales or lettings valuation with your local agent

May also interest you...

Are you ready to sell or let your property?

Book a free sales or lettings valuation with your local agent, and they will use their local knowledge and expertise to give you the most accurate sales or lettings valuation.