Tenancy Agreement UK: A Guide for Landlords & Tenants

A tenancy agreement forms the foundation of every rental relationship in the UK. It protects both landlords and tenants through clear legal terms.

This legally binding document outlines the rights, responsibilities, and expectations for both parties throughout the rental period. It is essential for anyone involved in the private rental sector.

Knowing what to include in a tenancy agreement can save time, money, and stress. Each clause, from rent to property maintenance, helps prevent disputes and ensures compliance with UK law.

First-time landlords creating a rental contract or tenants reviewing their rights both benefit from understanding these agreements. Knowing the different types of agreements and how to use them makes the rental process smoother for everyone.

What Is a Tenancy Agreement in the UK?

A tenancy agreement creates a legal framework between landlords and tenants. It defines each party’s rights and responsibilities.

The agreement covers rent payments, property occupation rights, and maintenance obligations under UK housing law.

Key Definitions and Terms

A tenancy agreement is a legal contract between a landlord and a tenant. It gives the tenant the right to live in a residential property in exchange for rent.

The agreement can be written or verbal, but written contracts offer better protection. Most agreements involve private landlords renting out residential property to individuals.

Fixed-term tenancies run for a set period, such as 12 months. Periodic tenancies continue on a rolling basis, usually week-to-week or month-to-month.

The Housing Act 1988 governs most private rental agreements in England and Wales. This law created assured shorthold tenancies (ASTs), now the standard form of residential tenancy.

The landlord owns the property, and the tenant rents it. Each party has specific legal rights and duties under the agreement.

Purpose and Importance

Tenancy agreements protect both landlords and tenants by setting clear expectations. They establish the tenant’s right to occupy the property and the landlord’s right to receive rent.

The contract outlines essential terms like rent amount, payment dates, and tenancy duration. It also covers deposit requirements, maintenance responsibilities, and house rules.

Without a proper agreement, disputes can arise over repairs, rent increases, or property damage. Written agreements provide legal evidence of what both parties agreed to.

The document helps prevent misunderstandings about utilities, pets, smoking, or guest policies. It also explains the process for ending the tenancy or making changes.

Distinguishing Tenancy from Lease and Rental Agreements

In UK law, tenancy agreements and lease agreements mean the same thing. Both grant occupation rights in exchange for rent.

Rental agreements is a broader term that can include shorter arrangements or commercial property rentals. The terminology depends on the property type and agreement length.

Residential tenancy agreements usually involve private landlords and individual tenants. Commercial property agreements use different terms and legal frameworks.

The main difference is in legal protections. Residential tenancies under the Housing Act 1988 offer specific tenant rights. Commercial leases follow different legal principles with fewer statutory protections.

Most UK residential arrangements use assured shorthold tenancies, no matter what they’re called.

Types of Tenancy Agreements

The UK has several types of tenancy agreements, each offering different levels of protection and rights. Most private rentals use assured shorthold tenancies, while commercial properties and lodging arrangements follow other rules.

Assured Shorthold Tenancy

An assured shorthold tenancy (AST) is the most common rental agreement in England and Wales. Most new tenancies automatically become ASTs under the Housing Act 1988.

An assured shorthold tenancy agreement applies when:

• The landlord is a private landlord or housing association
• The tenancy started on or after 15 January 1989
• The property serves as the tenant’s main home
• The landlord does not live in the property

ASTs cannot be used for:

• Properties with rent over £100,000 per year
• Properties with rent under £250 per year (£1,000 in London)
• Business premises or licensed properties
• Holiday lets
• Council properties

ASTs usually run for fixed terms, often six or twelve months. After the fixed term, the tenancy becomes a periodic tenancy.

Private landlords prefer ASTs because they provide clearer eviction procedures than other tenancy types.

Excluded Tenancy and Licences

Excluded tenancy applies when tenants share accommodation with their landlord. This arrangement usually happens when landlords rent out rooms in their own homes to lodgers.

Key features include:

• Shared living spaces like kitchens or bathrooms
• Landlord lives in the same property
• Limited protection from eviction
• Shorter notice periods for termination

Excluded tenants have fewer rights than AST tenants. Landlords can end these arrangements with minimal notice, often just the rental period length.

This type of agreement suits landlords who want flexibility and control over their living arrangements. It also applies when tenants share facilities with the landlord’s family members.

Assured and Non-Assured Tenancies

Assured tenancies offer stronger protection than ASTs but are less common for new agreements. These tenancies started between 15 January 1989 and 27 February 1997.

Assured tenancies provide:

• Greater protection from eviction
• Stricter grounds required for possession
• Potential rent control mechanisms

Regulated tenancies apply to agreements starting before 15 January 1989. These offer the strongest tenant protection and allow applications for “fair rent” determinations.

Non-assured tenancies include arrangements that don’t meet assured tenancy criteria, such as:

• High-value properties exceeding rent thresholds
• Properties where landlords are resident
• Temporary or holiday accommodations

Most new private rental agreements cannot be assured tenancies because current legislation favours ASTs.

Commercial Property Tenancies

Commercial property tenancies govern business premises and follow different rules from residential agreements. These arrangements typically involve shops, offices, warehouses, and industrial units.

Key differences include:

• Business Tenancy Act 1954 protection for qualifying tenancies
• Longer lease terms, often 5-25 years
• Rent review clauses and indexation
• Repairing obligations usually fall on tenants

Commercial tenants often have security of tenure, meaning automatic right to lease renewal unless landlords prove specific grounds for possession.

Common commercial arrangements:

• Full Repairing and Insuring (FRI) – tenant handles all maintenance and insurance
• Internal Repairing – tenant maintains interior only
• Gross lease – landlord covers most property costs

Commercial property agreements require more complex negotiations than residential tenancies. Both parties usually need professional legal advice.

Core Clauses and Legal Requirements

Every tenancy agreement must include specific legal requirements to protect both landlords and tenants under the Housing Act 1988. These core clauses set clear rules for rent payments, property details, tenancy terms, and deposit protection schemes.

Names of Parties and Property Details

The tenancy agreement must clearly identify all parties in the rental arrangement. This includes the full legal names of every tenant living in the property.

The landlord’s details must include:

• Full name or company name
• Contact address
• Phone number and email address

Tenant information should contain:

• Full names of all adults living in the property
• Current contact details
• Emergency contact information

The property address must be written in full. Include the house or flat number, street name, area, city, and complete postcode.

Any shared areas or facilities should be clearly described. This might include gardens, parking spaces, or communal rooms that tenants can access.

Term and Break Clause

The tenancy term shows how long the rental agreement will last. Most assured shorthold tenancies start with a fixed term of six or twelve months.

Key term details include:

• Start date of the tenancy
• End date of the fixed term
• What happens when the fixed term ends

A break clause allows either party to end the tenancy early. This clause must state when it can be used and how much notice is required.

The break clause usually cannot be used in the first six months of an assured shorthold tenancy. After this period, tenants normally need to give one month’s written notice.

Landlords generally need to provide at least two months’ notice to end a tenancy. The exact requirements depend on the tenancy type and situation.

Rent and Payment Terms

The agreement must clearly state the rent amount and payment schedule. This prevents confusion and helps both parties plan their finances.

Essential rent details:

• Total monthly or weekly rent amount
• Payment due date each period
• Accepted payment methods
• Late payment penalties

The agreement should explain what the rent covers. Some landlords include utilities like water or internet in the rent price.

Rent payment methods might include bank transfer, standing order, or direct debit. The landlord’s bank details should be provided if needed.

If rent payments are late, the agreement should explain any charges or consequences. These might include late fees or steps towards eviction.

Deposit and Deposit Protection

Most tenancy agreements require tenants to pay a security deposit before moving in. This deposit protects the landlord against unpaid rent or property damage.

The deposit amount is usually equal to one to six weeks’ rent. The exact sum must be clearly stated in the agreement.

Landlords must protect deposits using a government-approved scheme:

• Deposit Protection Service (DPS)
• MyDeposits
• Tenancy Deposit Scheme (TDS)

Landlords have 30 days from receiving the deposit to place it in a protection scheme. They must also give the tenant specific information about which scheme holds the deposit.

The agreement should explain when deductions might be made from the deposit. Common reasons include unpaid rent, excessive cleaning costs, or damage beyond normal wear and tear.

At the end of the tenancy, the deposit protection scheme helps resolve any disputes about returning the money.

Rights and Obligations

Each tenancy agreement creates legal duties for both parties. Landlords must ensure property safety and maintenance, while tenants must pay rent and look after the property.

Understanding notice periods and termination procedures protects both parties when ending the tenancy.

Landlord Legal Obligations

Landlords must meet several legal requirements before and during a tenancy. They must provide paperwork like the How to Rent guide, gas safety certificates, Energy Performance Certificates, and deposit protection scheme details.

Safety obligations include:

• Installing smoke alarms on every floor
• Fitting carbon monoxide alarms in rooms with solid fuel appliances
• Annual gas safety checks by Gas Safe registered engineers
• Electrical safety inspections every five years

Landlords must maintain the property’s structure and exterior. They handle repairs to heating, plumbing, and electrical systems.

Any appliances or furniture provided must be kept in working order. The property must meet fitness for habitation standards under the Homes (Fitness for Human Habitation) Act 2018.

Landlords cannot enter the property without giving 24 hours’ notice, except in emergencies.

Repair responsibilities cover:

• Structural defects
• Heating system failures
• Water supply issues
• Electrical problems

Tenant Obligations and Responsibilities

Tenants must pay rent on time, usually in advance. Late payments can lead to eviction.

Tenants are responsible for utility bills unless the tenancy agreement says otherwise.

They must use the property in a “tenant-like manner.” This means keeping it clean and disposing of rubbish properly.

Tenants should report repairs promptly. They handle minor maintenance like changing light bulbs and testing smoke alarms each month.

Key responsibilities include:

• Paying rent punctually
• Reporting maintenance issues in writing
• Allowing access for repairs with proper notice
• Maintaining reasonable cleanliness standards

Subletting or taking lodgers requires landlord permission. Tenants must not cause damage beyond fair wear and tear.

Normal wear includes minor scuff marks and carpet indentations from furniture.

Anti-social behaviour towards neighbours can result in eviction. Tenants should know how to operate appliances and locate stopcocks and fuse boxes.

Notice Periods and Termination

Fixed-term tenancies end automatically on the specified date unless renewed. If neither party serves notice, the tenancy becomes periodic and continues monthly or weekly.

Landlords must give at least two months’ notice using Section 21 for standard possession. They need court orders for eviction and cannot force tenants out without legal process.

Notice requirements:

• Tenant notice: Usually one month for periodic tenancies
• Landlord notice: Minimum two months for Section 21
• Fixed term: Ends on agreement date unless renewed

Tenants can give one month’s notice during periodic tenancies unless the agreement says otherwise. Early termination of fixed terms needs mutual agreement or a break clause.

Landlords return deposits within 10 days of tenancy end, minus deductions for damage beyond fair wear and tear. Tenancy deposit schemes handle disputes.

How to Create or Use a Tenancy Agreement Template

A tenancy agreement template saves time and helps meet legal requirements. Choose the right template, customise it for your property, and use digital resources for convenience.

Choosing the Right Template

Choose a template that follows current UK housing law. Look for templates mentioning the Housing Act 1988 and Tenant Fees Act 2019.

Assured shorthold tenancy agreement templates suit most private rentals in England and Wales. These cover fixed-term and periodic tenancies.

Check that the template includes essential sections:

• Rent amount and payment terms
• Deposit protection requirements
• Landlord and tenant responsibilities
• Notice periods for ending the tenancy
• Property maintenance obligations

Avoid outdated templates. Use templates updated with recent legal changes.

For HMOs or commercial lettings, use specialist templates instead of standard residential ones.

Customising and Completing the Agreement

Fill in basic details like names, addresses, and contact information for all parties. Include the full property address and any parking or storage areas.

Set clear rent terms, including:

• Monthly rental amount
• Payment due date
• Accepted payment methods
• Late payment consequences

State who pays for utilities, council tax, and internet. This prevents disputes.

Add property rules about pets, smoking, or alterations. Keep restrictions reasonable and legal.

Include an inventory with photographs showing the property’s condition at move-in. Both parties should sign this document.

Do not leave blank sections in the agreement. Mark unused sections as “not applicable.”

Digital and Free Agreement Options

Many organisations offer free tenancy agreement template downloads in Word and PDF formats. The National Residential Landlords Association and British Landlords Association provide member templates.

Digital templates allow easy customisation. Word documents let landlords change clauses while keeping the legal structure.

PDF templates work well for standard situations but are less flexible. Use them when you need minimal changes.

Online platforms like Rocket Lawyer UK offer interactive templates with helpful explanations for legal terms.

Always download templates from reputable sources. Free templates can be high quality, but check they meet current legal requirements.

Store completed agreements digitally with backup copies. Both landlords and tenants should get identical signed versions.

Additional Considerations for Landlords and Tenants

Beyond basic tenancy terms, pay attention to subletting, extra occupants, utility payments, property maintenance, and renewal or ending procedures.

Subletting and Occupants

Most tenancy agreements restrict subletting without written landlord permission. Private landlords usually include clauses to prevent tenants from renting rooms or the whole property to others.

The agreement should name who can live in the property. This includes tenants and approved occupants like partners or children.

Key subletting rules:

• Tenants must get written consent before subletting
• Unauthorised subletting can lead to eviction
• Some agreements allow lodgers with landlord approval

Landlords should specify the maximum number of occupants. This prevents overcrowding and keeps the property safe.

Tenants who want to add new occupants must discuss this with the landlord. Most landlords require background checks for new residents.

Utilities, Bills, and Property Maintenance

The tenancy agreement should state who pays for utilities and bills. This avoids disputes and clarifies financial responsibilities.

Common utility arrangements:

• Tenant responsibility: Gas, electricity, water, council tax
• Sometimes included: Internet, TV licence
• Landlord responsibility: Buildings insurance, major repairs

Define property maintenance duties clearly. Landlords handle major repairs and structural issues by law.

Tenants usually handle minor maintenance like changing light bulbs and cleaning. The agreement should explain what counts as “minor” and “major” repairs.

Maintenance breakdown:

• Landlord: Boiler repairs, roof leaks, structural damage
• Tenant: Garden upkeep, cleaning, small fixture replacements

Renewal, Extensions, and Ending the Tenancy

Tenancy agreements should explain how to renew or extend the tenancy. Many landlords offer periodic tenancies that continue monthly after the fixed term ends.

State notice periods for both parties. Landlords usually need to give at least two months’ notice to end an assured shorthold tenancy.

Standard notice periods:

• Landlord to tenant: 2 months (Section 21 notice)
• Tenant to landlord: 1 month (periodic tenancy)

The agreement should say if early termination is allowed and under what conditions. Some landlords include break clauses.

Outline renewal procedures, including possible rent increases. This helps tenants plan ahead.

Conclusion

A tenancy agreement forms the foundation of a successful rental relationship in the UK. Clear agreements help both landlords and tenants understand their rights and responsibilities.

Proper documentation protects all parties and reduces disputes.

Understanding tenancy agreements means knowing current UK housing law and regulations. Legal changes can affect agreements and future rentals.

Professional advice helps ensure legal compliance and avoids costly mistakes.

For expert help with tenancy agreements and property matters, contact JF Property Partners. Our experienced team supports landlords and tenants across the UK. 

Get professional help today by emailing info@jfpropertypartners.com, calling +44 7457 427143, or filling out our contact form.

Frequently Asked Questions

Tenants and landlords often have questions about tenancy agreements. Knowing the legal requirements, common types, and what happens without written agreements helps protect everyone’s rights.

How to write a tenancy agreement in the UK?

Use a template or write your own including rent amount, payment dates, property address, tenancy type, duration, and tenant/landlord responsibilities. Add clauses for repairs, maintenance, pets, and subletting. Ensure it follows UK housing laws and avoid unfair terms.

How to get a tenancy agreement in the UK?

Landlords or estate agents provide the agreement after reference checks. You’ll receive it before moving in. Always get a signed copy promptly.

What is the most common tenancy agreement in the UK?

The Assured Shorthold Tenancy (AST) is the most common type in England and Wales. Most private rentals use this agreement.

ASTs usually start as six or twelve-month fixed-term agreements. After the fixed term, they often become periodic tenancies.

This type gives landlords easier possession rights and provides tenants with basic legal protections.

In Scotland, Private Residential Tenancies are standard. These replaced ASTs in Scotland in 2017.

Can I live in the UK without a tenancy agreement?

Yes, tenants can live in a property without a written agreement. A verbal agreement creates legal obligations.

This situation can cause problems for both parties. Without written terms, disputes are harder to resolve.

Tenants still have legal rights without a written agreement. These include the right to live in the property and basic safety protections.

A written agreement protects everyone by making expectations clear. It’s always better to have written documentation.

What happens if there is no tenancy agreement?

Without a written agreement, the tenancy becomes periodic. This usually means month-to-month or week-to-week depending on rent payments.

Both landlord and tenant still have legal rights and responsibilities. Basic housing laws still apply.

Proving specific terms is difficult without written evidence. This can cause disputes about rent, repairs, or house rules.

The landlord can still seek possession but may face longer legal processes. Tenants may struggle to prove their right to stay in some situations.

What is the minimum tenancy agreement in the UK?

There’s no legal minimum length for tenancy agreements in the UK.

Landlords can choose any agreement period.

Most lenders ask landlords to offer at least six-month terms.

This helps meet mortgage and insurance requirements.

Many landlords prefer twelve-month terms for stability.

Shorter agreements can lead to more frequent tenant changes and extra costs.

Some landlords offer longer terms of two or three years.

These longer agreements often help tenants who want housing security.