Types of Tenancies

A tenancy is a contract between a landlord and a tenant on agreed terms. It matters which type of occupier arrangement you have, because the tenant’s rights and the correct possession procedure depend on whether the occupier has a tenancy (and if so, what kind) or a licence.

Assured and assured shorthold tenancies (Housing Act 1988)

Assured and assured shorthold tenancies are governed by the Housing Act 1988, as amended (including by the Housing Act 1996). Until the Renters’ Rights Act changes take effect, most private-rented sector lettings that qualify are assured shorthold tenancies.

Both assured and assured shorthold tenancies can be granted at a market rent.

Assured tenancy vs AST

Assured shorthold tenancy (AST)
An AST is the “default” tenancy type for most private lettings that qualify as assured tenancies and do not fall within an exception. Even without a written agreement (not recommended), the letting will usually still be an AST.

ASTs can be granted for any length. In practice, many are granted with an initial fixed term (often 6 or 12 months).

The main advantage for landlords is the ability to recover possession without proving a ground if the correct procedure is followed. This is the “no-fault” route using a section 21 notice (Housing Act 1988, section 21).

Assured tenancy (non-shorthold)
A non-shorthold assured tenancy generally gives the tenant stronger long-term security. The tenant can usually remain unless they leave voluntarily or the landlord proves a statutory ground in Schedule 2 of the Housing Act 1988.

The Section 21 “no-fault” procedure is not available for assured (non-shorthold) tenancies.

Historically, assured tenancies were the default for new lettings before 28 February 1997. Assured tenancies can also arise by mistake where the steps to create an AST were not properly followed. If you are unsure which tenancy applies, seek advice before serving notices or commencing possession proceedings.

Choosing between assured and assured shorthold

Until the Renters’ Rights Act changes, most landlords choose an AST because it offers a more straightforward route to possession when needed.

If the property is mortgaged, many lenders require the letting to be an AST.

Some landlords deliberately grant an assured (non-shorthold) tenancy where long-term security is the intention and possession is unlikely to be needed (for example, letting to a family member or a former employee).

Be careful before granting an assured (non-shorthold) tenancy. It can significantly limit possession options and may have long-term consequences, including succession rights in some cases.

Creating an assured (non-shorthold) tenancy

If a landlord intends to create an assured (non-shorthold) tenancy rather than an AST, that intention needs to be made clear to the tenant.

There is no set format. This is usually included in the tenancy agreement, but it can also be provided by a separate notice served before or after the tenancy begins.

When a tenancy cannot be assured (and therefore cannot be an AST)

Some lettings fall outside the Housing Act 1988 assured tenancy regime. In those cases, the arrangement is governed by the contract and common law, and other statutes may apply depending on the facts.

Examples include:

  • the tenancy began (or was agreed) before 15 January 1989 (often regulated under the Rent Act 1977)
  • the property is not the tenant’s only or principal home
  • rent is more than £100,000 per year
  • rent is £250 or less per year (£1,000 or less in Greater London)
  • a company let (where the tenant is not an individual)
  • the tenancy is granted to a full-time student by an educational body (for example, a university or college)
  • a holiday let
  • a letting by a resident landlord where landlord and occupier live in the same building as originally constructed
  • a licence/lodger situation, where accommodation is shared

The main practical point is that if the letting is not assured/AST, the possession process is different. Use the correct notice and procedure for the tenancy type you actually have.

Tenancies that can be assured, but cannot be assured shorthold (AST)

Some tenancies can be assured but cannot be ASTs. Examples include:

  • where there is an existing assured tenant (you cannot turn an assured tenancy into an AST just by issuing a new agreement, even after a fixed term ends)
  • an assured tenancy the tenant succeeded to on the death of a previous regulated (pre-1989) tenant under succession rules
  • an assured tenancy following a secure tenancy, where the tenancy transfers from a public sector landlord to a private landlord
  • an assured tenancy arising automatically when a long leasehold tenancy expires

Fixed-term and periodic tenancies (core concepts)

These concepts matter because notice periods, rent periods, and possession steps often depend on whether the tenancy is fixed-term or periodic.

Fixed-term tenancies

A fixed-term tenancy lasts for a set number of weeks, months, or years, as stated in the agreement.

Many are granted for 6 or 12 months, but any length is possible. If you agree to a term of more than 3 years, seek advice, as additional formalities may apply.

When the fixed term ends, the tenancy may:

  • continue as a periodic tenancy (often automatically), or
  • be replaced by a new fixed-term agreement.

Periodic tenancies

A periodic tenancy runs from one rent period to the next with no fixed end date (often called a “rolling” tenancy). It commonly takes one of two forms:

  • contractual periodic tenancy: the agreement says it is periodic from the outset, or the tenancy has a term that “continues” it as a contractual periodic tenancy after the fixed term has ended
  • statutory periodic tenancy: usually arises automatically when a fixed term ends, the tenant stays, no continuing term in the tenancy and no new agreement is granted

The “periods” are typically defined by the rent payment periods.

Example: If rent is paid monthly in advance on the 15th, the tenancy period typically runs from the 15th to the 14th.

When setting up an AST, be clear about:

  • the rent due dates, and
  • whether rent is payable in advance (common) or in arrears (unusual)

That makes it easier for both parties to work out notice correctly if a periodic tenancy arises.

If tenants remain after a fixed term ends, they are not squatters, and they do not gain additional rights simply because the periodic tenancy has continued for a long time.

The “initial period” of an AST

An AST can be periodic from the start, but it is common to grant an initial fixed term. There is no statutory minimum fixed term.

However, under the section 21 procedure, a court cannot order possession during the first 6 months of the tenancy. Even if you grant a term shorter than 6 months (or make it periodic from day one), you do not have a guaranteed Section 21 route until 6 months have passed.

This does not prevent possession during the initial period when a statutory ground applies (for example, certain rent arrears grounds), but that is a separate procedure.

These rules do not apply to tenancies outside the Housing Act 1988 regime (see above).

Renters’ Rights Act 2025: key changes from 1 May 2026

Most of this page describes the position before commencement. The Renters’ Rights Act 2025 makes major changes to assured tenancies in England from 1 May 2026. Key points:

  • Assured shorthold tenancies (ASTs) are abolished for the private rented sector. You cannot create a new “AST” after commencement.
  • Fixed terms are removed for assured tenancies. Any clause that tries to grant a fixed term has no effect. The tenancy will operate as a periodic assured tenancy, with the period linked to the rent period.
  • Rent periods for new assured tenancies are restricted. The rent period must be monthly or 28 days or shorter (for example, weekly or fortnightly). A term that requires a longer rent period (quarterly, six-monthly, annual) will not work to that extent, and the law will apply a monthly structure instead.
  • Ongoing rent in advance is restricted for new assured tenancies. Broadly, rent cannot be made due before the rent period it relates to. (The initial payment before move-in is slightly different.)
  • Existing assured and AST tenancies convert automatically at commencement into periodic assured tenancies, subject to transitional rules (including special rules where rent periods are longer than monthly).

Regulated tenancies (Rent Act 1977)

Most private lettings that began before 15 January 1989 are regulated tenancies under the Rent Act 1977 (unless landlord and tenant live in the same house).

Regulated tenants typically have:

  • stronger security of tenure, and
  • rent control protections.

A regulated tenant is unlikely to be evicted unless, for example, there are significant rent arrears or the landlord can provide suitable alternative accommodation.

GOV.UK has a useful leaflet: Regulated Tenancies

Licences and lodgers

A licence is permission to occupy without granting a tenancy. Some protective legislation applies differently (or not at all) to licensees.

When is it a tenancy?

Classic indicators of a tenancy are:

  • exclusive possession
  • a fixed or periodic term
  • payment of rent

If these features are present, the arrangement is likely to be a tenancy.

In practice, the key issue is usually exclusive possession. If the occupier does not have exclusive possession (for example, because they share facilities with an owner-occupier landlord), they are generally a licensee.

A tenancy will also not usually arise in some common situations, such as:

  • serviced accommodation where the landlord needs frequent access to provide services such as cleaning (and sometimes meals), like a hotel
  • where the occupier shares living accommodation with the landlord (a typical lodger arrangement)

Excluded occupiers (Protection from Eviction Act 1977)

The Protection from Eviction Act 1977 protects many occupiers, including some licensees. Some occupiers are treated as excluded (often called an “excluded licence” or “excluded tenancy”) under section 3A of that Act.

“Excluded” does not mean “no rights”. It mainly affects notice requirements and whether a court order is required in the usual way.

Even where an occupier is excluded, it remains unlawful to forcibly evict a person from the dwelling they occupy.

Common examples of excluded occupiers include:

  • the landlord lives in the dwelling, and the occupier shares accommodation with the landlord (typical lodger arrangement)
  • the occupation is for a holiday only
  • the agreement is granted otherwise than for money or money’s worth

Shelter overview

Contractual (common-law) tenancies

A contractual (common-law) tenancy is used when a tenancy cannot be an assured shorthold tenancy (AST).

Examples include:

  • one or more tenants are not individuals (for example, a company let)
  • the dwelling is not the tenant’s only or principal home
  • rent exceeds £100,000 per year
  • a resident landlord arrangement where the landlord lives in part of the same building (but not a lodger arrangement where accommodation is shared)

Because these tenancies fall outside the Housing Act 1988 assured shorthold tenancy regime, the possession route depends on the contract terms and the common law.

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