Understanding the Different Types of Tenancy in the UK
Whether you’re a landlord letting your property or a tenant moving into a new home, it’s important to understand the different types of tenancy agreements in the UK. Each tenancy type sets out specific legal rights, responsibilities, and procedures for both parties from how rent is paid to how notice must be given.
At Twenty20 Estates, we believe that clear knowledge leads to confident decisions. Here’s a simple guide to the most common tenancy types you’ll encounter across the UK property market.
1. Assured Shorthold Tenancy (AST)
The Assured Shorthold Tenancy (AST) is the most common type of rental agreement in England and Wales. It’s typically used for private residential properties where tenants live in the property as their main home and pay rent to a private landlord.
Key features:
• Usually lasts for 6 or 12 months (known as a fixed term).
• After the fixed period, it often continues automatically as a periodic tenancy (month to month).
• The landlord must protect the tenant’s deposit in a government-approved scheme.
• Both parties must follow legal procedures if either wishes to end the tenancy.
An AST offers a balanced structure providing flexibility for tenants and legal clarity for
landlords.
2. Assured Tenancy
An Assured Tenancy gives tenants greater long-term security. These agreements were more common before 1997 but still apply to some existing rentals.
Key features:
• The tenant can stay in the property indefinitely as long as they meet their tenancy obligations.
• The landlord can only regain possession under certain legal grounds.
• Often used by housing associations and for long-term rental arrangements.
While rare for new rentals, understanding assured tenancies remains important for landlords
buying properties with existing tenants.
3. Regulated (or Protected) Tenancy
Regulated Tenancies, also known as Protected Tenancies, usually date back to before January 1989.
Key features:
• Tenants have strong rent and eviction protection under older housing laws.
• Rent levels can be reviewed only under specific conditions.
• Landlords must follow a formal legal process to regain possession.
These tenancies still exist in some properties, particularly in London and older housing stock and require careful legal handling.
4. Non-Assured Tenancy
A Non-Assured Tenancy applies when certain legal conditions are not met for an AST.
Examples include:
• The annual rent is below £250 or above £100,000.
• The tenant does not live in the property as their main home.
• The landlord shares the building but not the same living space.
These tenancies have fewer statutory protections, so landlords and tenants should clearly outline all terms in writing.
5. Excluded Tenancy or Licence
If you rent out a room in your home and share spaces like the kitchen or bathroom with your tenant, the agreement is usually an Excluded Tenancy (or Lodger’s Agreement).
Key features:
• The tenant (lodger) has limited rights compared to an AST.
• The landlord can end the agreement with reasonable notice; a court order isn’t required.
• Ideal for live-in landlords renting spare rooms.
This arrangement offers flexibility but must be handled carefully to ensure fair treatment for both parties.
6. Company Let
A Company Let Agreement is when a business rents a residential property, typically to house employees.
Key features:
• The tenancy is between the landlord and the company, not an individual.
• It’s not covered by the Housing Act 1988, meaning it’s outside standard AST rules.
• Rent terms, notice periods, and responsibilities are defined solely by the written contract.
This option suits corporate relocations or serviced accommodation.
Why Knowing Your Tenancy Type Matters
Understanding the correct tenancy agreement helps:
• Avoid disputes and misunderstandings.
• Ensure legal compliance for landlords.
• Protect tenant rights and provide stability.
• Streamline property management and rent collection.
For landlords, identifying the right tenancy type before letting a property ensures smooth
transactions and avoids costly errors.
How Twenty20 Estates Can Help
At Twenty20 Estates, we work with both landlords and tenants to create tenancy agreements that are transparent, compliant, and fair. Our property experts guide clients through every step from setting up the right tenancy type to managing renewals and
documentation. Whether you’re renting your first property or managing a portfolio, we’re here to make the process straightforward and stress-free.
📞 020 3500 4622
📧 hello@twenty20estates.co.uk
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