When you decide to rent a property in the UK, one of the first things you’ll encounter is the type of tenancy agreement you’ll be signing. While there are various types of tenancies, two of the most common are the Assured Shorthold Tenancy (AST) and the Assured Tenancy (AT). But what do these terms mean, and how do they differ from one another?
Understanding the difference between these two types of tenancies is important because it affects your rights as a tenant and the responsibilities of your landlord. In this article, we’ll break down these two tenancy agreements in simple terms, so you can understand what each one offers and how they might impact you during your time as a tenant.
What is an Assured Shorthold Tenancy (AST)?
An Assured Shorthold Tenancy (AST) is the most common form of tenancy in the UK, especially for those who rent from private landlords. It is generally used for residential properties and gives landlords the flexibility to manage their property. An Assured Shorthold Tenancy is typically for a fixed term of six months, although it can be longer. After the initial fixed term has passed, the landlord can choose not to renew the agreement, and in some cases, they may be able to evict you without giving any specific reason.
Key Features of an AST
- Fixed Term: Most ASTs are for a fixed term, often six months, but this can be longer. During this period, you are guaranteed to stay in the property as long as you meet the terms of your tenancy agreement.
- Notice for Eviction: If you are on an AST, after the fixed term has expired, the landlord can give you notice to leave the property. The notice period is typically two months. The landlord doesn’t need to provide a reason for the eviction, but they must follow legal procedures, such as serving you with the correct notice.
- Rent: The rent is usually agreed upon at the beginning of the tenancy, and it can only be increased if you agree to it or if there is a rent review clause included in your agreement. The clause will outline when rent increases can take place, how much notice you’ll receive, and how the rent increase is calculated.
- Deposit: You will usually be asked to pay a deposit when you start your AST. This deposit is protected in a Tenancy Deposit Protection (TDP) scheme and will be returned to you at the end of the tenancy, provided there is no damage to the property or outstanding rent.
- Repairs and Maintenance: Your landlord is required to maintain the property and carry out necessary repairs. If something goes wrong in the property, like a leaking tap or a broken boiler, your landlord is legally responsible for fixing it. However, you should make sure the issue is reported as soon as possible.
- End of the Tenancy: Once the fixed term expires, the landlord can either choose to renew the Assured Shorthold Tenancy or serve a notice to ask you to leave. If they choose not to renew the contract, they must give you at least two months’ notice.
Who Uses ASTs?
ASTs are mainly used by private landlords who want to rent their properties to individuals. Housing associations and some other landlords also use ASTs. They are the preferred option because they offer a simple way for landlords to regain possession of their property at the end of the term without needing to provide a legal reason.
What is an Assured Tenancy (AT)?
An Assured Tenancy (AT), on the other hand, is a tenancy agreement that provides greater security for tenants. With an AT, you can live in the property as long as you meet the conditions of your agreement, and you have the right to stay in the property until the landlord has grounds to evict you. The main difference between an Assured Tenancy and an Assured Shorthold Tenancy is that an Assured Tenancy gives you more security and protection.
Key Features of an AT
- Long-Term Security: With an Assured Tenancy, you have more stability because you cannot be evicted easily. As long as you meet the terms of your tenancy (such as paying your rent on time), you have the right to stay in the property.
- Eviction Process: The landlord can only evict you if they have legal grounds to do so, such as if you are in rent arrears or if there is damage to the property. The landlord must apply to the court for a possession order before they can evict you, which means the process can take longer and offers you more protection.
- Rent: Like with ASTs, the rent for an Assured Tenancy is agreed upon at the beginning of the tenancy. However, the rent cannot be increased without your consent, or unless your agreement includes a rent review clause. The landlord must also give you notice if they plan to increase the rent.
- Deposit: Just like with an AST, a deposit is usually required. This deposit is protected in a Tenancy Deposit Protection scheme and is returned to you at the end of the tenancy, unless there is damage or unpaid rent.
- Repairs and Maintenance: The landlord is still responsible for keeping the property in a good condition. They must repair any damage to the property, including issues with the structure or systems (e.g., plumbing, heating), unless you caused the damage.
- End of the Tenancy: Unlike with an AST, the landlord cannot simply end the tenancy at the end of the fixed term. The landlord must have legal grounds to regain possession of the property, which makes this type of tenancy more secure for tenants.
Who Uses ATs?
Assured Tenancies were more common before 1997 and were typically used by social landlords (such as councils or housing associations). Today, Assured Tenancies are less commonly used, and many landlords now prefer to use ASTs due to the simplicity and flexibility they offer.
Key Differences Between Assured Shorthold Tenancy and Assured Tenancy
Now that we’ve explored both types of tenancies, let’s break down the key differences between an Assured Shorthold Tenancy (AST) and an Assured Tenancy (AT).
Eviction Rights
- Assured Shorthold Tenancy: A landlord can regain possession of the property after the fixed term ends by giving you reasonable notice. The landlord doesn’t need to provide a reason for eviction.
- Assured Tenancy: A landlord cannot evict you without a valid reason. They must follow a legal process and have grounds for eviction (such as rent arrears or damage to the property). You are more secure under an AT.
Security of Tenure
- Assured Shorthold Tenancy: Provides less security for tenants because once the fixed term ends, the landlord has the right to evict you without providing a reason.
- Assured Tenancy: Offers more security because you can stay in the property until the landlord has valid grounds for eviction.
Rent Increases
- Assured Shorthold Tenancy: Rent can be increased during the tenancy, but only if you agree or if a rent review clause is included in the contract.
- Assured Tenancy: Rent increases are less common during the term of an Assured Tenancy, and any increase must be agreed upon or outlined in the agreement.
Use by Landlords
- Assured Shorthold Tenancy: More commonly used by private landlords today because it allows landlords to easily regain possession of the property once the fixed term expires.
- Assured Tenancy: Less commonly used today, as landlords prefer the flexibility of the AST. However, they provide greater tenant security.
Tenant Rights
- Assured Shorthold Tenancy: Your rights as a tenant are more limited in terms of security and eviction protections.
- Assured Tenancy: You have greater tenant rights, especially regarding security of tenure. You can remain in the property until there is a legal reason for eviction.
Conclusion
As a tenant, it’s crucial to understand the differences between an Assured Shorthold Tenancy (AST) and an Assured Tenancy (AT). While both tenancies offer protection to tenants, an Assured Shorthold Tenancy is more flexible for landlords and less secure for tenants, as they can be evicted after the fixed term ends without any reason. On the other hand, an Assured Tenancy provides greater long-term security and requires the landlord to have legal grounds to evict you.
If you’re a tenant, it’s important to know which type of tenancy you have, as it directly impacts your rights and responsibilities. If you’re unsure about your tenancy type or need assistance with your tenancy agreement, consider seeking advice from a legal expert or a tenant support organisation to ensure your rights are protected.
