What Is An Assured Shorthold Tenancy?

Posted by Jack Malnick | 29 August, 2024 | Reading time 6 minutes

Exploring assured shorthold tenancies: a guide for landlords

If you’re a landlord in England or Wales, you’re likely familiar with the assured shorthold tenancy (AST) – the most common type of tenancy agreement. But what is an assured shorthold tenancy exactly? And what are the implications for landlords wanting to sell a tenanted property for cash?This guide breaks down the essentials of assured shorthold tenancy agreements, including key features, landlord and tenant rights, and what to consider when selling a property with tenants in place.

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What is an assured shorthold tenancy agreement?

An assured shorthold tenancy agreement is a legally binding rental contract between a landlord and tenant. It’s the standard arrangement for residential lettings in England and Wales.

So, what is an assured shorthold tenancy in simple terms? It’s a contract that:

  • Gives tenants the right to occupy the property for a fixed term (usually 6–12 months)
  • Allows landlords to regain possession, typically via a Section 21 notice (though this is being phased out)
  • Defines rent, responsibilities, and tenancy terms clearly

This form of tenancy was introduced under the Housing Act 1988, becoming the default under the Housing Act 1996.

How long is an assured shorthold tenancy agreement typically? 

If you’re wondering “how long is an assured shorthold tenancy agreement?”, the answer depends on what’s agreed between the landlord and tenant. Typically:

  • Most ASTs last 6 or 12 months
  • They can roll into periodic (month-by-month) agreements after the fixed term ends

The flexibility of ASTs makes them ideal for landlords seeking short- to medium-term arrangements with clear legal boundaries.

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Key features of an assured shorthold tenancy

Understanding the legal and practical aspects of an AST is critical for property owners, particularly those looking to sell a home quickly with tenants. The main features include:

  • Fixed-term occupancy
  • Rent and deposit terms
  • Notice procedures for repossession
  • Conditions of tenancy (e.g., no pets, no smoking)
  • Clear rules for maintenance and repairs

Six reasons why landlords should use an assured shorthold tenancy agreement

Here’s why landlords benefit from using a proper assured shorthold tenancy agreement:

1. Legal protection

An AST is a recognised legal framework. It provides landlords with the right to reclaim possession after the term and ensures tenants have protection during their stay.

2. Financial clarity

The agreement specifies rent, due dates, and deposit handling, reducing misunderstandings and increasing transparency.

3. Flexibility at the end of term

What happens at the end of an assured shorthold tenancy? The landlord can either:

  • Allow the tenancy to become periodic, or
  • End the agreement with proper notice (currently via a Section 21 or Section 8)

4. Defined tenant conduct

Landlords can set rules to protect the property, such as bans on pets or subletting.

5. Dispute resolution

The AST serves as the primary evidence in case of disputes, reducing legal risks.

6. Supports quick property sales

ASTs enable landlords to retain tenants during the sales process, which is especially useful when selling to a cash buyer.

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Understanding tenant and landlord responsibilities under an AST

A valid assured shorthold tenancy outlines obligations such as:

  • Tenant responsibilities: Pay rent on time, keep the property in good condition, report issues
  • Landlord responsibilities: Maintain the property, protect the deposit, and provide proper notice for access or eviction

These duties are enforceable by law, ensuring both parties are protected throughout the term.

Selling a property with an assured shorthold tenancy in place

It’s entirely legal and increasingly common to sell a tenanted property for cash. ASTs make this possible without needing to evict tenants.

In fact, many professional buyers, including Sell House Fast, prefer tenanted properties because they provide immediate rental income and legal clarity.

Benefits of selling a tenanted property to a cash buyer

Zero disruption for tenants

Tenants remain in place under the same assured shorthold tenancy agreement.

Fast and simple sale

With Sell House Fast, sales can complete in days. No chains. No delays.

Legal support throughout

Our experts will walk you through the entire process, ensuring complete legal compliance when selling with a tenancy.

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Why Sell House Fast?

We’re specialists in buying tenanted and non-tenanted properties across the UK.

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How it works

Step 1: Tell us about your property

Use our short form or call us with the details. No pressure, just information.

Step 2: Get a free cash offer

We’ll provide a competitive cash offer with no obligation and no fees.

Step 3: Sit back and relax

If you accept, we will handle everything, from legal paperwork to dealing with your tenants.4

FAQs about assured shorthold tenancies

An AST is the default rental agreement for private landlords in England and Wales. It outlines the terms of occupancy and gives landlords legal rights to regain possession.

Most fixed terms last 6 or 12 months, after which the agreement can continue on a rolling basis unless ended by either party.

The tenancy can:
– Automatically become periodic (month-by-month), or
– End if the landlord or tenant serves notice
A Section 21 notice is often used to end the tenancy, though reform is underway to remove it.

This is an older form of tenancy that offers stronger rights to tenants, including long-term occupancy and more stringent eviction processes. It’s rare today and generally only applies to pre-1997 agreements.

Absolutely. Many landlords sell their property with the tenancy in place, particularly when working with experienced cash home buyers like Sell House Fast.

Ready to sell a property with an AST in place?

Sell House Fast helps landlords sell their homes quickly, even with a current assured shorthold tenancy in place. We understand your rights, your needs, and how to keep the process hassle-free for you and your tenants. Get a free cash offer today. We buy any house, in any condition, with or without tenants.

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