AST (assured shorthold tenancy)

Why it matters

Landlords who continue to use outdated AST templates after the commencement of the Renters' Rights Act 2025 will be relying on invalid contractual terms, potentially rendering their tenancy agreements unenforceable or leading to disputes. Non-compliance could jeopardise a landlord's ability to recover possession when legitimate grounds exist, as well as risking financial penalties or civil claims from tenants. The reforms apply to all tenancies, not just new ones, requiring a comprehensive update to all landlord processes and documentation.

Legal requirements

• All new residential tenancies in England created from the commencement date must be periodic assured tenancies, with no fixed terms.
• Existing assured shorthold tenancies will automatically convert to periodic assured tenancies upon the commencement date of the relevant provisions of the Renters' Rights Act 2025.
• Landlords must provide tenants with a written tenancy agreement that accurately reflects the periodic nature of the tenancy and the new grounds for possession.
• The landlord's obligation to protect the tenancy deposit in an authorised scheme within 30 days and provide prescribed information remains in force.
• Landlords must ensure the property meets the 'fitness for human habitation' standards throughout the tenancy, including proper repair and freedom from serious hazards.
• Gas safety certificates must be obtained annually from a Gas Safe registered engineer and provided to tenants.
• Electrical safety checks must be carried out by a qualified person at least every five years, with reports provided to tenants.
• Properties must have an Energy Performance Certificate (EPC) with a minimum required rating (currently E for new tenancies and some existing ones), and a copy must be given to tenants.
• Landlords must provide tenants with a copy of the government's 'How to Rent' guide at the start of a tenancy and whenever updated.
• Landlords must conduct right to rent checks on all adult occupiers and retain records for the duration of the tenancy.

Common mistakes

• Failing to update tenancy agreement templates from ASTs to the new periodic assured tenancy format, rendering them non-compliant.
• Attempting to issue a Section 21 notice for possession after its abolition, leading to failed court applications and delays.
• Not providing tenants with a valid Gas Safety Certificate, Electrical Safety Report, or EPC, which can invalidate legitimate possession claims.
• Incorrectly attempting to impose fixed-term tenancy agreements or break clauses that are no longer permissible under the new legislation.
• Failing to correctly protect the tenancy deposit within the statutory timeframe or provide the prescribed information, which can prevent possession and incur penalties.
• Not ensuring the property meets the Homes (Fitness for Human Habitation) Act 2018 standards, exposing landlords to potential tenant claims.
• Misunderstanding the new, expanded grounds for possession, leading to incorrect or invalid eviction attempts.
• Attempting to implement rent increases more frequently than legally permitted or without proper notice, which can be challenged by tenants.

Practical guidance

• Familiarise yourself thoroughly with the full provisions of the Renters' Rights Act 2025 and its commencement dates.
• Immediately replace all assured shorthold tenancy (AST) agreement templates with new periodic assured tenancy agreements for all future tenancies.
• Review and update all existing tenancy agreements to reflect their automatic conversion to periodic assured tenancies upon commencement.
• Ensure all pre-tenancy checks, including Right to Rent and tenant referencing, are compliant with current legal requirements.
• Update your onboarding process to provide all mandatory documents, such as the latest 'How to Rent' guide, EPC, Gas Safety Certificate, and Electrical Safety Report, before the tenancy begins.
• Verify that all tenancy deposits are protected in a government-approved scheme and that prescribed information has been issued to tenants.
• Implement a robust property maintenance schedule to ensure continuous compliance with fitness for human habitation standards.
• Understand the new grounds for possession and the procedures for serving a valid notice to quit if possession is required.
• Train staff on the updated legislative landscape, particularly regarding permissible fees, deposit protection, and rent increase protocols.
• Seek professional legal advice if unsure about any aspect of the new legislation or its application to specific circumstances.

The End of Assured Shorthold Tenancies and Section 21

The Renters' Rights Act 2025 marks a seismic shift in the landscape of private rented housing in England, primarily through the abolition of assured shorthold tenancies (ASTs) and the 'no-fault' Section 21 eviction notice. From the commencement date in 2026, all new tenancies will be periodic assured tenancies, meaning they have no fixed end date and continue indefinitely unless ended on one of the new, reformed grounds for possession. Crucially, all existing ASTs will also automatically convert to these new periodic assured tenancies upon the relevant commencement date. This eliminates the landlord's previous ability to regain possession without demonstrating a fault on the tenant's part or a specified landlord circumstance. Instead, landlords must now rely on specific, legally defined grounds for possession, many of which are mandatory but require evidence and specific notice periods.

Transitioning to the New Periodic Assured Tenancy Regime

For landlords, the transition involves more than just changing the name on a document; it requires a fundamental shift in approach. Any tenancy agreement issued after the commencement of the Renters' Rights Act 2025 must reflect the new periodic assured tenancy structure. Landlords should review and update all their tenancy documentation, including application forms, 'offer to let' letters, and the core tenancy agreement itself. It is essential to remove any clauses that refer to fixed terms, Section 21 notices, or other elements of the abolished AST regime. Furthermore, landlords must understand that even existing ASTs will convert, meaning the new rules apply universally. This impacts everything from how a landlord might seek a rent increase to the procedures for regaining possession of the property. For guidance on ongoing tenancies, refer to the /wiki/periodic-tenancy page.

New Grounds for Possession and Tenant Protections

With Section 21 abolished, landlords in England must now rely on new and revised statutory grounds for possession, which are detailed in the Housing Act 1988 as amended by the Renters' Rights Act 2025. These grounds generally fall into two categories: mandatory grounds, where a court must grant possession if proven (e.g., serious rent arrears, landlord wishes to sell or move in), and discretionary grounds, where the court considers all circumstances (e.g., persistent late rent, breach of tenancy terms). The Act strengthens tenant protections, giving them more security of tenure and greater ability to challenge unreasonable rent increases or substandard living conditions. The legislation also introduces new safeguards against retaliatory evictions, further limiting a landlord's ability to seek possession after a tenant has complained about property conditions. Understanding these grounds is crucial for any landlord seeking to end a tenancy lawfully.

Regional Differences: Scotland, Wales, and Northern Ireland

It is critical to note that the Renters' Rights Act 2025 applies only to England. The private rented sector in Scotland, Wales, and Northern Ireland operates under different legislative frameworks. In Scotland, the Private Residential Tenancy (PRT) was introduced in 2017, providing an open-ended tenancy with specific grounds for repossession. Fixed-term tenancies and 'no-fault' evictions similar to Section 21 were largely abolished in Scotland years ago. In Wales, the Renting Homes (Wales) Act 2022 fundamentally reformed housing law, replacing ASTs with 'occupation contracts' – primarily standard occupation contracts, which can be fixed-term or periodic, but with different notice periods and grounds for possession. Northern Ireland continues to use different tenancy agreements, predominantly periodic tenancies under the Private Tenancies (Northern Ireland) Order 2006, with specific notice requirements and grounds for possession. Landlords and agents must consult the specific legislation relevant to their property's location.

Compliance and Best Practice for Landlords and Agents

To navigate the post-AST landscape successfully, landlords and letting agents must prioritise rigorous compliance. This includes not only updating tenancy agreements but also reviewing all related processes, from initial tenant referencing and the handling of a /wiki/holding-deposit to managing rent increases and addressing property maintenance. Ensure all mandatory documents – including the /wiki/permitted-fees (Tenant Fees Act) statement, Gas Safety Certificate, Electrical Safety Report, and EPC – are correctly issued at the right times. Implement robust record-keeping practices for all communications, safety checks, and repairs. Continuous professional development is vital for agents to stay abreast of legislative changes. For landlords, engaging with a reputable letting agent or seeking regular legal advice can mitigate risks and ensure adherence to the evolving legal framework.