Assured Shorthold Tenancy
What is an Assured Shorthold Tenancy?
An Assured Shorthold Tenancy is a type of tenancy, and the most common form of arrangement which involves a private residential landlord renting a property to a tenant.
Any tenancy created on or after 15th January 1989 is automatically an Assured Shorthold Tenancy unless written notice is given, specifying that the agreement is not a shorthold tenancy. Even if there is no contract written or oral contract in place between the landlord and tenant, the tenancy will still be an assured shorthold tenancy. Consequently, both tenant and landlord will both be protected by the Housing AcT 1988 and the Housing Act 1996.
Requirements for an Assured Shorthold Tenancy
There are generally several factors which will determine whether or not an Assured Shorthold Tenancy has been agreed to. If the agreement in place meets all the following criteria, then it’s typically an Assured Shorthold Tenancy:
- If the tenant pays less than 25k per year in rent (25k will change to 100k in October 2010)
- If the tenant moved into the property on or after 28th febuary 1997
- If the tenant is renting from a private landlord
- If the tenant has rights to have privacy in the property where the landlord cannot enter the property without mutual agreement
A tenancy will NOT be an Assured Shorthold Tenancy if:
There are also several factors which will determine if an agreed tenancy is NOT an Assured Shorthold Tenancy. If the agreement in place meets all the following criteria, then the tenancy cannot be an assured shorthold tenancy:
- If the property receives more than £50k per year in rent
- If the property receives very low, or not rent at all
- If the property is a holiday home
- If the property is let to a private limited company
- If the property is owned by the Crown or a government department
- If the property is being let with more than two acres of agricultural land or an agricultural tenancy