Assured Shorthold Tenancy (AST) Agreement UK: Complete Guide (2026)

If you are granting or signing a residential tenancy in England in 2026, the ground has moved under your feet. The Renters’ Rights Act has rewritten the rules landlords and tenants have relied on since 1988. Fixed-term ASTs in England are, for most new tenancies, a thing of the past. Section 21 “no fault” evictions are gone. Every new letting rolls onto a periodic basis from day one. Wales moved earlier to “occupation contracts” under the Renting Homes (Wales) Act 2016. This guide walks you through the modern AST.

What an AST Is (2026 — Pre- and Post-Reform)

The Assured Shorthold Tenancy was created by the Housing Act 1988 and refined by the Housing Act 1996. That picture has changed. The Renters’ Rights Act abolished Section 21, ended fixed-term ASTs for new lettings in England, and converted tenancies to single, open-ended, periodic assured tenancies.

In Wales, the AST was replaced by the “occupation contract” under the Renting Homes (Wales) Act 2016 from 1 December 2022. Welsh landlords must use a written statement of contract in prescribed form within 14 days of occupation.

Essential Clauses

The Parties

Full legal names and service address in England or Wales under s.48 Landlord and Tenant Act 1987. No service address — rent not lawfully due.

The Property

Full postal address, what is included (parking, garden), what is excluded (shared hallways).

The Term

New English tenancies: periodic from the outset. Legacy ASTs and new Welsh contracts: state fixed term and what happens at the end.

Rent

Amount, period, due date, method, review provisions. Rent reviews in the new regime are tightly controlled.

Deposit

Capped at five weeks’ rent where annual rent is under £50,000, six weeks where £50,000+ (Tenant Fees Act 2019). The scheme (DPS, MyDeposits, TDS) and dispute mechanism.

Repairs and Access

Landlord’s right to reasonable access on 24 hours’ written notice, save in emergency.

Statutory Obligations — What Landlords MUST Do

• EPC — valid certificate rated E or above before the tenancy begins.
• Gas safety — annual Gas Safe inspection and CP12 certificate.
• EICR — every five years, report to tenant within 28 days.
• How to Rent guide — latest version at start and on renewal.
• Smoke and CO alarms — smoke on every storey, CO in every room with a fixed combustion appliance.
• Right to Rent — check every adult occupier under the Immigration Act 2014.
• Licensing — mandatory HMO licensing for 5+ persons in 2+ households. Selective and additional schemes in many local authorities.

Deposit Protection Done Right

Under ss.213–215 Housing Act 2004:

• Protect in an authorised scheme within 30 days of receipt.
• Serve prescribed information within the same 30 days.
• Use a custodial or insurance-backed scheme.

Failure: tenant claims 1–3× the deposit under s.214. Landlord cannot serve certain notices until cured.

Implied Terms the Court Will Read In

• Quiet enjoyment — the tenant’s right to use the property without substantial interference. Harassment or unlawful eviction breaches it and triggers criminal liability under the Protection from Eviction Act 1977.
• Repairing obligations (s.11 L&TA 1985) — structure, exterior, installations for water, gas, electricity, sanitation, heating. Cannot be contracted out.
• Fitness for human habitation — Homes (Fitness for Human Habitation) Act 2018. Property fit at the start and throughout.
• Non-derogation from grant — landlord cannot make the property unusable by acts on adjoining land.

Prohibited and Unenforceable Terms

Under the Consumer Rights Act 2015, terms creating a significant imbalance to the tenant’s detriment are unfair and not binding. Commonly struck through:

• Blanket bans on pets, guests, or decoration without reasonableness.
• Automatic forfeiture clauses bypassing statutory possession.
• Excessive default charges (Tenant Fees Act 2019 caps late rent interest at 3% above Bank of England base rate).
• Clauses requiring tenant to pay landlord’s legal costs regardless of outcome.
• “As is” disclaimers excluding statutory repair duties.
• Deposit deduction clauses giving landlord sole discretion.
• Break fees disguised as early termination charges.

Ending the Tenancy Properly

Under the new English regime, possession only on statutory grounds in Schedule 2 Housing Act 1988 as amended. Section 21 is no longer available for new tenancies. Section 8 grounds remain, with new and revised categories including rent arrears, anti-social behaviour, landlord selling or moving in (with protections), and breach of tenancy.

Tenants end a periodic tenancy by giving two months’ written notice, expiring on any day.

Common Drafting Errors

• Using a pre-2025 template.
• Naming only one of a couple as landlord or tenant when both own or both occupy.
• Forgetting the s.48 service address.
• Taking too much deposit.
• Protecting the deposit late.
• Failing to serve prescribed information and How to Rent.
• Drafting a fixed term for a new English tenancy.
• Unfair terms (blanket bans, automatic forfeiture, cost-recovery).
• Mis-describing the scheme in the prescribed information.
• Relying on Section 21 under the new regime.

The Rules That Apply

• Housing Act 1988 — Schedule 2 grounds for possession.
• Housing Act 1996 — AST formalities (legacy).
• Renters’ Rights Act — 2024/2025 reform.
• Landlord and Tenant Act 1985, s.11 — repairs.
• Homes (Fitness for Human Habitation) Act 2018.
• Housing Act 2004, ss.212–215 — deposit protection.
• Tenant Fees Act 2019 — prohibited payments, deposit caps.
• Consumer Rights Act 2015 — unfair terms.
• Protection from Eviction Act 1977.
• Immigration Act 2014 — Right to Rent.
• Gas Safety Regulations 1998; Electrical Safety Standards Regulations 2020; Smoke and CO Alarm Regulations 2015.
• Renting Homes (Wales) Act 2016.

How Chris Can Help

Drafting an AST in 2026 is no longer a matter of downloading a template. The statute has moved, the forms have moved, and the notices have moved with them. Chris drafts agreements to match the current regime, the prescribed information, and the notices you will need when something goes wrong.

For a single tenancy: Litigator at £30. You bring the particulars; Chris drafts the document, s.48 address, prescribed information, and notices.

For portfolio landlords or where the tenancy interacts with a company, trust, or disrepair matter: Hybrid at £1,000 gives you concierge-level drafting across the lot.

7-day money-back guarantee. Not happy with the draft before you sign and send? We refund. We are miracle-makers, not miracle-workers.

Chris drafts documents to your instructions. Chris does not give legal advice.

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Frequently Asked Questions

Is the AST still a thing in England in 2026?

In name, only for legacy tenancies. New English tenancies after the Renters’ Rights Act commencement are periodic assured tenancies from the outset.

Can I still grant a fixed term in England?

Not for new tenancies in the private rented sector. The new regime is periodic-only.

What about Wales?

Wales moved earlier. Grant an occupation contract under the Renting Homes (Wales) Act 2016 with a written statement in prescribed form within 14 days.

Is Section 21 gone?

For new English tenancies, yes. Landlords now rely on Schedule 2 grounds using a Section 8 notice.

How much can I take as a deposit?

Five weeks’ rent where annual rent under £50,000. Six weeks where £50,000+.

What if I protect the deposit late?

Tenant can claim 1–3× the deposit under s.214 Housing Act 2004. No grace period — day 31 is the line.

Can I ban pets or guests?

Blanket bans likely unenforceable under CRA 2015. A reasonable consent clause with a clear process is the safe route.

How much notice does the tenant give to leave?

Two months’ written notice, expiring on any day.