What is a tenancy agreement in England?
A tenancy agreement is a binding contract between a landlord and a tenant that sets the terms for occupying a residence. This agreement outlines the obligations of both parties, including the requirement to pay rent.
Why tenancy agreements are legally important
Having a written agreement is vital because it provides objective evidence of the terms agreed upon, essential to resolve future disputes. It ensures all occupants, including joint tenants, understand their responsibilities regarding rent payment and property upkeep.
There are also other reasons why a written tenancy agreement is preferable.
How English tenancy law has changed in recent years
Previously, the assured shorthold tenancy was the standard type of tenancy in the private sector, but this is now being replaced. Under former practices, a letting agent often facilitated fixed terms where occupants paid for home use until a set date. Recent legislation has moved toward enhancing renter security and reforming residential letting law.
Overview of the Renters’ Rights Act 2025 and its impact
The Renters’ Rights Act 2025 replaces the traditional assured shorthold tenancy agreement with a default periodic tenancy. Every private tenant must now receive a written tenancy agreement or statement containing the start date, the full address, and the landlord's duty regarding repairs. This applies even if individuals share facilities within the same building, ensuring a clear written record once the contract is signed. For example, landlords can only seek possession using specific statutory grounds, ending "no-fault" evictions.
Legal Framework for Tenancy Agreements
Main legislation governing tenancy agreements
Historically, the Housing Act 1988 defined the standard type of tenancy for the private sector, notably establishing the shorthold tenancy as the primary framework. The Landlord and Tenant Act 1985 mandates statutory repairs and defines the landlord's obligations regarding upkeep of the structure and exterior.
The Renters’ Rights Act 2025 is the latest legislation empowering the private tenant. It rebalances the relationship by ending fixed terms and regulating rent payment frequency.
Abolition of Assured Shorthold Tenancies (ASTs)
From May 1, 2026, the traditional assured shorthold tenancy will be abolished for all new and existing arrangements. A written agreement must reflect that every tenancy is periodic from its inception, even for individual rooms let within the same building. Existing assured shorthold tenancy agreements convert into assured periodic tenancies, requiring delivery of a written tenancy agreement or statement.
Repeal of Section 21 “no‑fault” evictions
The removal of Section 21 means a landlord can no longer evict a tenant without citing a specific statutory reason. To recover possession, owners must provide court evidence that a mandatory ground has been met, for example showing intention to sell. If a contract was signed but rent is unpaid, the owner must serve a Section 8 notice to recover possession.
Role of courts and tribunals in tenancy disputes
The First-tier Tribunal handles disputes between joint tenants and owners regarding rent increases or address details in a statement. The tribunal ensures rent is set at an open-market rate. The County Court remains responsible for possession orders, verifying the start date and compliance with notice requirements.
Types of Tenancy Agreements in England
Under the Renters’ Rights Act 2025, the structure of every tenancy agreement in England is transforming. This contract now defaults to a periodic model to ensure greater security.
Assured Periodic Tenancy (APT) – the new default
The APT is a tenancy continuing indefinitely without a fixed end date. Landlords must provide a written tenancy agreement or statement, replacing the former shorthold tenancy framework with fixed terms.
Existing assured tenancies
On 1 May 2026, existing assured shorthold tenancies convert into assured periodic tenancies. Owners must provide an information sheet to those who entered agreements before the new regime, even if originally fixed term.
Licences vs tenancies
A landlord must distinguish between a tenancy, granting exclusive possession, and a licence, which is permission to occupy. If the tenant can exclude the owner, courts view this as tenancy regardless of label; for example, property guardians or lodgers may differ based on control.
Joint tenancy agreements
When a property is let to joint tenants, they share joint and several liability. This written agreement means each occupant is responsible for full rent payment and must collectively meet all obligations to prevent disputes.
Student tenancy agreements
Properties let to students in the same building or as an HMO may be subject to Ground 4A for possession at academic year end. The full address must be clearly identified, and specific notices served on precise dates to meet legal requirements.
When a tenancy agreement is not required
While an oral agreement can create a valid tenancy, the law now requires terms recorded in writing. Every private tenant must receive a document outlining rights, including repair responsibilities, even if no formal agreement is signed. Once the letting agent or owner provides this written statement, it serves as the official record of terms and rent paid.
Structure of the Modern English Tenancy Agreement
Open ended, periodic nature of tenancies
A modern tenancy agreement in England is open-ended to ensure occupants have a place to live as long as needed. Unlike a Scottish private residential tenancy agreement, this framework requires individuals to pay rent on a rolling basis without a defined expiry date. Landlords drafting their own tenancy agreement must keep the structure periodic to be valid.
Monthly rent periods (legal requirement)
The Renters’ Rights Act 2025 regulates payment frequency to enhance renter security. The written agreement must specify successive periods not exceeding one month. This also facilitates accurate liability for council tax from the start date.
No fixed term clauses
Current law renders fixed term provisions ineffective. This ensures tenants agree to monthly rent payable rather than locked-in durations. Occupants no longer need a break clause to end tenancy early, as they can serve notice anytime.
Automatic conversion of older ASTs
On 1 May 2026, all existing assured shorthold arrangements convert to periodic status, even for houses in multiple occupation, regardless of additional clauses both you and the occupant previously signed. Owners must ensure the deposit scheme remains protected and clarify notice periods if the tenant chooses to vacate.
Legal implications for landlords and tenants
This legal framework requires a landlord to provide a written document to every person on the property. In disputes, the contract governs liability for bills like tv licence or service charges. For example, where other tenants reside, the owner must verify the HMO licence and confirm how much rent is due to avoid conflicts. Transition rules ensure tenancy ends only via statutory grounds, protecting the tenant under their agreement.
Written Statement of Terms (WST)
Legal requirement to provide written terms
The Renters’ Rights Act 2025 mandates every landlord provide clear terms to the tenant before a new residential tenancy begins. This ensures transparency in private renting, replacing informal arrangements with a written summary of rights for each person on the property.
Under current law, failure to provide this document can result in financial penalties up to £7,000.
When the WST must be issued
For new arrangements, the statement must be delivered before the parties enter the contract.
Under English law, a separate written statement of terms is not required where a landlord provides the tenant with a comprehensive Assured Periodic Tenancy Agreement in advance of the tenancy commencement and both parties are prepared to execute that agreement before the tenancy begins.
This is because the tenancy agreement itself, once signed, clearly sets out all the essential statutory particulars such as the parties, rent, duration, obligations, and other key terms thereby satisfying the requirement to furnish the tenant with written details of the arrangement. In such circumstances, the agreement serves as the definitive record of the contractual relationship, ensuring transparency and compliance, provided it is issued to the tenant with sufficient time for review and formally entered into prior to the start date of the tenancy.
Rights and Responsibilities of Tenants
A tenancy agreement sets the legal terms for living in a property in England. Tenants have the right to live without harassment and in a home fit for habitation. Rent increases require proper notice and can be challenged. Tenants can request pets, which landlords cannot unreasonably refuse. To end a tenancy, tenants must give two months’ written notice and maintain the property during their stay.
Rights and Responsibilities of Landlords
Right to receive rent on time
A landlord has the right to receive full rent on the date specified. This is the primary condition for occupation and must be fulfilled without unauthorised deductions.
Maintenance and repair obligations
It is a statutory duty to keep the property fit for habitation and maintain structure and exterior. This implied term cannot be limited by contract.
Safety compliance duties
Owners must ensure electrical installations are safe and provide necessary certificates. Failure to provide safety information can lead to penalties.
Access rules and notice requirements
To regain possession, owners must follow Section 8 procedures as "no-fault" evictions are abolished. Owners must give 24 hours' notice before entering, except emergencies.
Limits on contract terms and conditions
Modern tenancies must be periodic from inception; fixed terms or "no pets" clauses without valid reasons are ineffective. Tribunals can rule on fairness of terms.
Restrictions on discrimination
All parties must comply with anti-discrimination rules, prohibiting exclusion based on protected characteristics. Agreements must reflect these protections for fairness.
Rent, Deposits, and Financial Rules
Setting rent under UK law
Owners must specify fixed rent in all adverts to prevent "bidding wars," ensuring transparency before agreements are signed. Unlike Scottish tenancy agreements, English law requires clear figures upfront.
Rent increase rules
The Renters’ Rights Act 2025 mandates a single statutory mechanism for rent adjustments. Old automatic review clauses are void.
- Section 13 process: Rent changes must follow this formal procedure.
- Form 4A: Owners must serve this official document.
- One increase per year: Rent can rise only once per 12-month period.
- Minimum two months’ notice: Tenants must receive 60 days' notice before increases take effect.
Tenant right to challenge rent at tribunal
Tenants can refer disputes to the First-tier Tribunal, which sets reasonable rent by comparing similar local dwellings, preventing unfair pricing.
Restrictions on rent in advance
Owners can only require one month’s rent in advance after agreements start, preventing financial barriers and ensuring tenancy accessibility.
Security deposit rules and protections
Agreements must detail the deposit scheme holding funds. In HMOs, owners must verify the HMO licence status. All bills, including council tax, service charges, and tv licence liability, should be clear to avoid disputes before tenancy ends.
Because periodic terms are default, break clauses are unnecessary to end tenancy early. Notice periods govern tenant moves. Landlords should avoid outdated templates to stay compliant with 2025 reforms.
Ending a Tenancy Agreement
Under the Renters’ Rights Act 2025, the legal process for concluding a residential let has undergone significant reform to enhance security for occupiers. Every tenancy agreement is now periodic from its inception, meaning the arrangement continues indefinitely until ended through specific statutory procedures.
Tenant Ending the Tenancy
Statutory notice periods
A tenant possesses the statutory right to end their tenancy at any time by providing a minimum of two months' notice. While the law sets this as the standard, the parties may agree to a shorter notice period, such as one calendar month, provided this is recorded in a written agreement.
How and when notice can be given
Notice must be delivered in writing, and current regulations accept various formats, including email, text message, or a traditional letter. This document does not require a specific legal form but must clearly state the intention to vacate.
Alignment with rent period
To ensure an orderly conclusion, the notice should ideally be timed to expire on the last day of a rent period. Once the notice is signed and served, the occupier remains liable for all financial obligations until the expiry date.
Landlord Ending the Tenancy
Section 8 as the only route to possession.
The repeal of Section 21 "no-fault" evictions means a landlord can no longer regain possession without citing a specific reason. Section 8 of the Housing Act 1988 is now the exclusive legal route for recovering a property, requiring the owner to provide objective evidence to the court.
Mandatory and discretionary grounds.
Possession grounds are divided into mandatory grounds, where the court must grant an order if the facts are proven, and discretionary grounds, where a judge decides if eviction is reasonable. This distinction is vital for any dispute, as discretionary claims carry a higher degree of uncertainty for the owner.
Key possession grounds
- Occupation by landlord or family:
Under Ground 1, an owner can seek possession if they or a close family member intend to use the dwelling as their principal residence. This requires a four-month notice period and is only available after the first year of the agreement.
- Intention to sell:
Ground 1A is a new mandatory ground for owners wishing to sell the freehold or leasehold interest. Similar to occupation grounds, this requires four months' notice to protect the occupier's stability.
- Rent arrears:
Ground 8 remains the primary mechanism for serious debt, though the threshold has increased to thirteen weeks (or three months) of unpaid funds. Owners must serve a four-week notice before initiating legal proceedings.
- Student accommodation grounds:
Ground 4A allows for the recovery of HMO properties let to full-time students at the end of an academic year, provided a written statement of this intent was given at the start date.
Notice forms and evidential requirements
Landlords must use the prescribed Form 3A to initiate the possession process. This document must contain the full particulars of the claim, and owners must be prepared to provide supporting proof, such as solicitor correspondence for a sale or detailed arrears logs for financial claims.
Penalties for misuse of possession grounds.
The legislation introduces severe penalties to deter the fraudulent use of possession grounds. If a person is found to have obtained a possession order through misrepresentation or re-lets the home within twelve months of using Ground 1 or 1A, they may face civil penalties of up to £40,000 or a Rent Repayment Order covering up to two years of paid rent.
Prohibited and Unenforceable Clauses in an Assured Periodic Tenancy Agreement?
Under current law, any further clauses that attempt to establish a fixed-term residential tenancy are of no effect. It is also illegal to include terms that prohibit a person from renting because they are a benefits claimant or have children.
A modern contract cannot contain a break clause to end the tenancy early, nor can it mandate that a tenant provide more than two months' written intimation. Additionally, within private renting, clauses that attempt to bypass the Section 13 mechanism or include prohibited bills like unauthorised service charges are strictly unenforceable.
Common Tenancy Agreement Disputes
A common dispute occurs when an occupant challenges a proposed increase in how much rent is due via the First-tier Tribunal. Disagreements also frequently arise over the landlord's duty regarding repairs or the statutory obligation to keep the property fit for human habitation.
Furthermore, a dispute may arise if the owner refuses a request for a pet without reasonable grounds or if there is a conflict regarding how much notice is required to conclude the tenancy. To mitigate risk, individuals should maintain objective evidence of compliance with the deposit scheme rules to avoid significant financial penalties.
Best Practices for Drafting a Tenancy Agreement
Drafting a modern English tenancy agreement requires a transition from traditional fixed-term models to an open-ended periodic structure. It is a recommended written practice to use plain English to ensure the tenant agrees to all terms without ambiguity, which strengthens the legal effect of the document.
Landlords should integrate the Written Statement of Terms directly into their own tenancy agreement to satisfy mandatory compliance before the parties execute the deal. For example, the text must clearly define the rent payable and specify that all future increases will follow the statutory Section 13 procedure.
If the parties are entering into a contract before the tenancy starts, the landlord does not need to provide a written statement of terms.
Useful documents and further information
Next, you may wish to read about what to do before letting a property, or about the terms in a tenancy agreement.
Net Lawman offers a range of assured periodic tenancy agreement templates that you can use as the basis for your contract.