Tenancy Agreement Types UK: Your Guide to Understanding and Choosing the Right Option
If you are planning to rent a property in the UK, it’s essential to understand the different types of tenancy agreements available. Each agreement has its own terms and conditions, and it’s important to choose the right one based on your needs and circumstances.
To help you make an informed decision, we’ve compiled a comprehensive guide to tenancy agreement types in the UK.
1. Assured Shorthold Tenancy (AST)
The most common type of tenancy agreement in the UK is the Assured Shorthold Tenancy (AST). This agreement is suitable for tenants who want to rent a property for a fixed period, usually six to twelve months. The landlord can regain possession of the property at the end of the term, provided they give the tenant a notice period of two months.
2. Assured Tenancy
An Assured Tenancy agreement is a less common option, and it is typically offered to tenants who have been living in the property for a long time. It provides greater security of tenure than an AST, as the tenant can stay in the property indefinitely.
3. Rent Act Tenancy
A Rent Act Tenancy is a type of tenancy agreement that originated in the 1970s. It provides tenants with significant legal protection, such as the right to have the rent fixed by the government. However, these types of agreements are rare, and most landlords will not offer them.
4. Company Let
If you are a business owner looking to rent a property for your employees, a Company Let agreement may be suitable. Under this agreement, the landlord rents the property to a company rather than an individual tenant.
5. Licenses
A License is a type of tenancy agreement that provides less security of tenure than an AST. It is typically used for short-term rentals, such as holiday lets or lodgings for students. The main difference between a License and an AST is that the tenant does not have exclusive possession of the property.
6. Excluded Tenancy
An Excluded Tenancy is a type of tenancy agreement that applies when the landlord lives in the property and shares facilities such as the kitchen or bathroom with the tenants. This agreement is usually informal and does not provide the same legal protection as an AST.
7. Regulated Tenancy
A Regulated Tenancy is a type of tenancy agreement that applies if the tenant has been living in the property since before 15 January 1989. These types of agreements are rare, and tenants have significant legal protection under the law.
8. Resident Landlord Tenancy
If you live with your landlord in the same property, you will have a Resident Landlord Tenancy. This agreement provides less legal protection than an AST, and the landlord can ask you to leave with less notice than required under an AST.
9. Fixed-term Tenancy
A Fixed-term Tenancy is a type of AST that applies for a specified period. This agreement provides more security of tenure than a License or an Excluded Tenancy, but less than an AST.
10. Periodic Tenancy
If you do not sign a new tenancy agreement at the end of your fixed-term tenancy, you will automatically move onto a Periodic Tenancy. Under this agreement, the tenancy continues on a rolling basis, usually month-to-month. The landlord can end the tenancy by giving the tenant two months’ notice.
In conclusion, choosing the right tenancy agreement types UK is essential for ensuring your legal rights and responsibilities are protected. Make sure you read and understand the terms and conditions of any agreement before signing to avoid any misunderstandings or disputes with your landlord.