How to Draft a UK Tenancy Agreement: 2026 Landlord Guide

Drafting a residential tenancy agreement in England has fundamentally changed. For decades, the Assured Shorthold Tenancy (AST) formed the bedrock of the private rented sector. Today, the legal architecture governing private tenancies looks entirely different under the Renters' Rights Act 2025. Standard boilerplate templates downloaded from the internet before 2026 are not merely outdated, they contain unlawful terms that expose landlords to immediate civil enforcement and financial penalties.

Creating a valid, legally compliant agreement now demands a precise understanding of the statutory framework. Here is what every private landlord must know to draft and execute an agreement that protects their asset while remaining entirely on the right side of the law.

The New Legal Baseline: What Has Changed?

The Renters' Rights Act 2025 abolished fixed-term tenancies and Assured Shorthold Tenancies for standard residential lettings in England. Every private tenancy created in 2026 is an assured periodic tenancy from its inception.

Under this system, the tenancy has no contractual end date. It runs indefinitely from one rent period to the next, usually month to month. A tenant has the statutory right to bring the tenancy to an end by serving at least two months' written notice to the landlord. Conversely, a landlord can only recover possession by serving a Section 8 notice founded upon specific, proven statutory grounds.

Because the law no longer permits fixed terms, any clause in an agreement attempting to bind a tenant to a six-month, twelve-month, or two-year term is completely void. Landlords must also provide tenants with a written statement of terms setting out basic statutory information. Relying on an unwritten or verbal agreement is now an actionable breach subject to local authority enforcement.

Who These Rules Apply To

These rules apply to almost all private residential landlords letting property in England. Whether you let a single buy-to-let flat, manage a substantial portfolio, or operate a House in Multiple Occupation (HMO), you must use the updated periodic assured tenancy framework.

Only a narrow group of lettings falls outside this regime, including resident landlord lettings (where you share living accommodation with your tenant), holiday lets, and purpose-built student accommodation managed by approved educational institutions. For all standard private residential lettings, the periodic assured rules are mandatory.

Mandatory Elements to Include in 2026

A tenancy agreement in 2026 must be clear, transparent, and accurate. When drafting your document, ensure the following core elements are addressed:

1. Correct Legal Parties and Property Definition

State the full legal names of all adult occupants who will be contractual tenants, alongside your full legal name and an address in England or Wales for serving notices under Section 48 of the Landlord and Tenant Act 1987. Clearly describe the property, including any specific allocated parking spaces, gardens, or storage units included in the let.

2. Rent and Payment Frequency

Specify the exact rent payable and the rental period, which is typically monthly. The agreement must state when rent falls due. You cannot include rent review clauses that impose automatic inflationary increases or stepped jumps. Any future rent increase can only be implemented using the statutory Section 13 notice procedure, giving the tenant at least two months' notice, limited to once per year, and aligned with open-market rates.

3. Statutory Tenancy Status

The agreement must explicitly identify itself as an assured periodic tenancy governed by the Housing Act 1988 as amended. It should explicitly state that the tenancy runs on a rolling basis without a fixed expiry date.

4. Tenant Notice Rights

State the statutory notice provision: the tenant may terminate the tenancy at any time by giving no less than two months' notice in writing, ending on the last day of a rental period.

5. Deposit Details

If you take a tenancy deposit, the document must state the precise amount taken, capped at five weeks' rent for properties where the annual rent is under £50,000, or six weeks' rent if annual rent exceeds that threshold. Identify which of the three government-approved schemes will protect the funds: the Deposit Protection Service (DPS), MyDeposits, or the Tenancy Deposit Scheme (TDS).

6. Statutory Repair Obligations

Reiterate the landlord's obligations under Section 11 of the Landlord and Tenant Act 1985 and the Homes (Fitness for Human Habitation) Act 2018. Setting out clear processes for how tenants report repairs prevents disputes and ensures you have a paper trail to meet legal maintenance standards.

Dangerous Clauses: What You Must Leave Out

Including prohibited terms can invalidate parts of your contract or make you liable for statutory damages. You must leave out:

• Fixed-term commitments: Any clause stating the tenancy is for a fixed period of six or twelve months is legally void.
• Break clauses: Because fixed terms do not exist, break clauses are obsolete. The tenant already possesses the statutory right to give two months' notice.
• Rent bidding or rent review formulas: Clauses that attempt to bypass the Section 13 statutory rent increase process are completely unenforceable.
• Blanket pet bans: The law grants tenants the right to request a pet, which a landlord cannot unreasonably refuse. You may require the tenant to hold pet insurance to cover potential property damage, but absolute prohibitions are unlawful.
• Blanket bans on children or benefit recipients: Terms that discriminate directly or indirectly against families with children or individuals receiving Universal Credit or housing support are strictly prohibited.
• Prohibited fees: Under the Tenant Fees Act 2019, you cannot charge fees for drafting tenancy agreements, conducting inventory checks, referencing, or renewing tenancies. Any clause attempting to impose these charges is unlawful.

Required Accompanying Documentation

A tenancy agreement cannot be served in isolation. To comply with the Deregulation Act 2015 and current safety regulations, you must provide a compliant onboarding pack before or at the start of the tenancy:

• A valid Energy Performance Certificate (EPC) with an approved rating.
• The current Gas Safety Certificate (CP12), provided before the tenant moves in, if the property contains gas appliances.
• A satisfactory Electrical Installation Condition Report (EICR), completed within the last five years.
• The latest edition of the statutory How to Rent guide published by the UK Government.
• Prescribed Information for the protected deposit, served within 30 days of receiving the funds.

Failing to serve these documents correctly can severely restrict your ability to rely on statutory possession grounds later.

Penalties and Enforcement

Local housing authorities possess broad enforcement powers under the Renters' Rights Act 2025 and associated private rented sector legislation. The financial risks of non-compliance are severe:

• Failure to provide written terms: Councils can levy civil penalties of up to £7,000 for an initial failure to provide written statements or compliant terms. Continued or repeated non-compliance can result in fines of up to £40,000 or criminal prosecution.
• Tenant Fees Act breaches: Unlawful charges carry a civil fine of up to £5,000 for a first offence, with penalties rising up to £30,000 for repeat offences within five years.
• Unlawful discrimination: Imposing blanket bans against families or benefit recipients can result in local authority fines of up to £7,000.
• Unprotected deposits: Failure to protect a tenancy deposit and serve prescribed information within 30 days leaves landlords liable for court-ordered compensation of between one and three times the deposit value, alongside the return of the original deposit.

Step-by-Step Tenancy Agreement Checklist

1. Verify the identity and right to rent status of all adult occupants.
2. Confirm the advertised rent matches the agreement without accepting any bidding premiums.
3. Prepare a rolling periodic assured tenancy agreement omitting any reference to fixed terms.
4. Insert lawful clauses regarding pet requests and reasonable insurance requirements.
5. Draft clear repair and notification procedures aligning with Section 11 obligations.
6. Provide bank details for rent payments and detail approved deposit arrangements.
7. Prepare the compliance pack: EPC, EICR, Gas Safety Certificate, and the government How to Rent guide.
8. Obtain signed acknowledgments confirming receipt of both the agreement and all safety documentation.
9. Register the deposit with an approved scheme and serve the Prescribed Information within 30 calendar days.

Common Drafting Mistakes

Many landlords fall into legal traps by modifying contracts without professional oversight. The most frequent mistake is cutting and pasting clauses from pre-2026 templates, such as clauses requiring the tenant to pay professional cleaning fees or clauses locking tenants into a 12-month period.

Another common error is drafting vague pet permissions. A landlord cannot simply state "no pets allowed without written consent" and then routinely refuse requests. Grounds for refusal must be reasonable, such as building lease prohibitions or clear space constraints.

Finally, landlords often forget to update their notice addresses. Under Section 48 of the Landlord and Tenant Act 1987, rent is not legally due until the tenant is provided with an address in England or Wales where notices may be served. If your tenancy agreement omits this, you cannot take action for non-payment of rent until it is provided.

What to Do This Week

• Audit your existing tenancy agreement templates and remove all references to Assured Shorthold Tenancies and fixed terms.
• Delete any clauses concerning rent review formulas, pre-set increases, or administrative charges.
• Check your safety certificates to ensure your EPC, EICR, and annual gas safety checks are fully current.
• Download the most recent edition of the government How to Rent booklet to update your onboarding package.
• Review your pet and application policies to ensure you do not inadvertently enforce unlawful blanket bans.