Assured tenancy and assured shorthold tenancy are two terms that are often thrown around in the world of renting. But what exactly is the difference between the two? Let’s break it down in a simple, non-legalistic language that anyone can understand.
Firstly, assured tenancy is a type of rental agreement that offers tenants long-term security in their tenancy. This means that the tenant has the right to stay in the property for an indefinite period of time, as long as they adhere to the terms of the tenancy agreement. On the other hand, assured shorthold tenancy is a more flexible type of agreement that typically lasts for a fixed period of time, usually 6 or 12 months.
Now, you may be wondering what the benefits and drawbacks of each type of tenancy are. Well, assured tenancies give tenants greater protection against eviction and higher levels of security of tenure. However, they may come at a higher cost and often require more stringent qualifications for potential tenants. Whereas assured shorthold tenancies offer more flexibility in terms of the length of stay and requirements for starting a tenancy, they come with a higher chance of eviction and less security of tenure.
Definition of Assured Tenancy
Assured tenancy is a type of tenancy agreement in which a tenant has the legal right to live in a property for a defined period, as long as they pay rent and fulfill the other terms of the agreement. The concept of assured tenancy was introduced in the Housing Act of 1988 in the United Kingdom as a way to provide more protection to tenants than previous tenancy agreements.
An assured tenancy can either be a periodic tenancy or a fixed-term tenancy. A periodic tenancy is one where the tenant rents the property on a month-to-month basis, and the agreement continues until the tenant or landlord gives notice to end it. A fixed-term tenancy, on the other hand, is one where the tenant rents the property for a set period of time, such as six months or a year, after which the agreement expires unless it is renewed.
Key Features of Assured Tenancy
- Assured tenancy provides more security to tenants compared to previous tenancy agreements since it offers protection against unreasonable evictions.
- The rent is typically lower since the landlord cannot increase the rent arbitrarily or evict the tenant without sufficient grounds.
- Assured tenancy allows tenants to enjoy their homes without the fear of being asked to leave with little or no notice.
Assured Tenancy vs. Assured Shorthold Tenancy
Although assured tenancy and assured shorthold tenancy share some similarities, they differ in several ways. Assured shorthold tenancy (AST) is the most common type of tenancy agreement in the UK and is used by most landlords when renting out their properties. Some of the differences between the two include:
Assured tenancy:
- It provides greater protection for tenants against eviction for no reason.
- The landlord must have grounds for eviction, and the tenant has the right to challenge the eviction in court.
- The tenant has a right to live in the property as long as they pay rent and fulfill the terms of the agreement.
Assured shorthold tenancy:
- It is the most common type of tenancy in the UK.
- The landlord can evict the tenant after the fixed-term agreement expires, granted the right notice has been given.
- If stay exceeds fixed term, it automatically becomes an assured periodic tenancy and the process of eviction gets a bit more complicated.
| Assured Tenancy | Assured Shorthold Tenancy | |
|---|---|---|
| Extensive notice before eviction | Yes | No |
| Landlord can end the agreement just because lease term ends | No | Yes |
| Allows tenants to remain even in cases of foreclosure or change of property ownership | Yes | No |
The choice between assured tenancy and assured shorthold tenancy is up to landlords. If landlords want to have more control over their properties and the tenants in them, assured shorthold tenancy is the better option. But for tenants that want more security and protection, assured tenancy is the best choice.
Definition of Assured Shorthold Tenancy
In the UK, an assured shorthold tenancy or AST is the most common type of tenancy agreement between landlords and tenants. Under an AST, tenants have the legal right to live in a property for a specific amount of time, typically six to 12 months, in exchange for regular rent payments to the landlord.
An AST provides a landlord with more flexibility than an assured tenancy because it allows them to regain possession of the property at the end of the tenancy or earlier if certain conditions are met, such as non-payment of rent or breach of the tenancy agreement.
It’s important to note that only certain types of properties can be let under an AST. For example, holiday homes, bedsits, and social housing properties are not eligible for ASTs.
- Key Differences between Assured and Assured Shorthold Tenancies
- When an AST ends, the landlord has the right to regain possession of the property and does not need to provide a reason for ending the tenancy, as long as the correct legal procedures are followed.
- ASTs typically last for six to 12 months, after which the tenancy becomes a periodic tenancy and can be terminated by either the tenant or the landlord with notice.
- Assured tenancies, on the other hand, provide tenants with more security of tenure and can last indefinitely until the tenant decides to leave or is evicted by the landlord for a specific reason, such as breach of tenancy agreement or anti-social behaviour.
If you’re considering signing an AST, it’s important to carefully read and understand the terms and conditions of the agreement before signing. Be sure to ask your landlord or letting agent any questions you may have, and seek legal advice if required.
| Pros of ASTs | Cons of ASTs |
|---|---|
| Flexibility for landlords to regain possession of the property | Less security of tenure for tenants |
| Short-term agreements allow tenants to stay for a fixed period, which can be beneficial for students or those on short-term work contracts. | Landlords can increase rent at the end of the tenancy. |
| Allows for a trial period for both the tenant and landlord before committing to a longer tenancy. | Tenants may need to move regularly and find new housing every six to 12 months. |
Overall, an AST can be a suitable option for tenants who are looking for short-term accommodation and landlords who want flexibility and control over their property. However, it’s important to weigh up the pros and cons and consider other tenancy options that may be more appropriate for your individual circumstances.
Advantages of Assured Tenancy
Assured tenancy is a type of tenancy agreement that is granted to tenants by landlords, giving them the right to stay in the property for an extended period. The agreement provides several benefits that tenants can take advantage of. Below are some of the advantages of assured tenancy:
- Security of Tenure – With assured tenancy, tenants have more security of tenure as compared to assured shorthold tenancy. This means that tenants have the right to remain in the property as long as they comply with the terms of the agreement, without fear of being evicted unless there are exceptional circumstances such as rent arrears, damage to property, or anti-social behavior.
- Rights to Renew Tenancy – Under assured tenancy, tenants have the right to renew their tenancy agreement at the end of the fixed term. This means that tenants can continue to stay in the property without having to worry about finding a new place to live. The renewal terms are usually agreed upon between the landlord and tenant, and any changes made must be reasonable.
- Protection from Rent Increases – Assured tenancy generally provides more protection to tenants from rent increases. A landlord may only increase the rent after the fixed term of the agreement has ended, and both parties must agree on the amount of the increase. If the tenant does not agree, the landlord must obtain a court order to raise the rent.
Notice Periods and Termination
When it comes to notice periods and termination of assured tenancy, the process is usually more complicated than with assured shorthold tenancy. The notice period required is usually longer, and landlords must follow specific legal procedures if they wish to evict tenants. This means that tenants have greater protection from eviction than they would under assured shorthold tenancy.
Rent Increases Under Assured Tenancy
According to the Rent Act 1977, landlords must keep the rent under review and increase it for their properties in line with market rents. However, they cannot increase the rent without first notifying the tenants in a written notice. If there is a disagreement over the increase, either party can refer the matter to a rent assessment committee (RAC). The RAC will then decide on a fair rent for the property based on local market rents.
| Notice Period | Length of Tenancy | Notice Given by Landlord |
|---|---|---|
| 1 week | Monthly tenancy or weekly tenancy | In writing, at least one week before new rent due date |
| 1 month | Yearly tenancy | In writing, at least one month before new rent due date |
| To be agreed between landlord and tenant | Assured Tenancy | In writing, giving a reason for the increase |
Overall, the main advantage of assured tenancy is the security of tenure that it provides. Tenants have the right to stay in the property for an extended period, giving them stability and peace of mind. Additionally, assured tenancy provides more protection to tenants from rent increases, making it an attractive option for those who are looking for a more long-term solution.
Advantages of assured shorthold tenancy
Assured shorthold tenancy (AST) is the most common form of tenancy in the UK. It offers a number of advantages to both landlords and tenants compared to other types of tenancy, such as assured tenancy (AT).
- Flexibility: ASTs are flexible, as they allow landlords to set a range of terms and conditions tailored to their specific needs. For instance, landlords can enforce rent increases at any point in the tenancy (subject to certain rules) or specify the length of the tenancy. As a tenant, you can enjoy the flexibility of being able to move out with just two months’ notice (or even less if agreed upon in the tenancy agreement).
- Ease of eviction: ASTs tend to have simpler and faster eviction procedures in case things go wrong. This is because landlords are only required to give just two months’ notice, after which they can apply to the court to evict tenants. Additionally, landlords are entitled to possession of their property after the tenancy period comes to an end, even if the tenant refuses to leave.
- Lower up-front costs: ASTs typically require lower up-front costs compared to other types of tenancy, such as AT. This is because the security deposit (usually equivalent to one month’s rent) is often much lower. Additionally, tenants may not be required to pay council tax, service charges, or maintenance costs.
Overall, ASTs provide a viable option for both landlords and tenants, offering greater flexibility and minimal risk. However, it’s important to be aware of key differences between ASTs and ATs so that you can make an informed decision.
Below is a comparison of the key differences between ASTs and ATs:
| Feature | AST | AT |
|---|---|---|
| Eviction | Can be evicted more easily and quickly | Requires a court order to be able to evict |
| Security of tenure | Usually for a fixed term and does not automatically renew. | Provides more security and allows tenants to stay in a rented property until they choose to leave or until the landlord gets a court order to remove them. |
| Rent review | Can be reviewed and increased over time. | Can only be reviewed if the tenant agrees or by a tribunal. |
Understanding the differences between these tenancies is crucial to ensure that both landlords and tenants have the right level of security and flexibility they require.
Disadvantages of Assured Tenancy
An assured tenancy is a type of rental agreement that provides tenants with more security of tenure than a shorthold tenancy. However, there are some disadvantages that tenants should be aware of before entering into this type of agreement.
- Limited flexibility: One of the main disadvantages of an assured tenancy is that it can be challenging for tenants to end the tenancy. This means that if you need to move out before the end of the tenancy agreement, you might be liable for rent until the end of the contractual term.
- No right to buy: Tenants with an assured tenancy do not have the right to buy the property they are renting. This can be challenging for tenants who have been in the same property for many years and have become emotionally attached to it.
- Higher rent: Landlords may charge higher rent for assured tenancies because of the increased security of tenure that they offer. This can make it more difficult for tenants to afford the property they are renting.
Assured Tenancy vs Assured Shorthold Tenancy
One of the most significant differences between assured tenancy and assured shorthold tenancy is the level of security that tenants enjoy. With an assured tenancy, tenants have the right to remain in the property for as long as they comply with the terms of the tenancy agreement. The landlord can only end the tenancy in certain circumstances, such as if the tenant breaches the agreement or if the landlord needs the property for their personal use.
On the other hand, an assured shorthold tenancy usually lasts for a fixed term, typically six or twelve months. At the end of the tenancy, the landlord has the right to take back the property without having to give a reason. However, the landlord can only do this once the fixed term has expired, and they have given the required notice.
Renting with Rent Control
Rent control is a system that regulates the amount that landlords can charge their tenants for rent. In areas with rent control, landlords are only allowed to charge a certain amount per month, and they are not allowed to raise the rent above a certain percentage each year.
| Pros | Cons |
|---|---|
| Provides tenants with more protection against excessive rent increases | Landlords may be less likely to make repairs or maintain the property |
| Can help to preserve affordable rental housing | May discourage new landlords from entering the market |
| Allows tenants to remain in their homes, even if they cannot afford higher rents | May lead to shortages in rental housing |
Rent control can be beneficial for tenants, especially those who live in areas with high rental prices. However, it can also have drawbacks, such as discouraging landlords from improving their properties or creating new rental housing.
Disadvantages of Assured Shorthold Tenancy
Assured Shorthold Tenancy (AST) is the most common type of tenancy agreement used in the UK, but it comes with its downsides. Here are some of the disadvantages of an AST:
- Short-term lease: As the name suggests, an AST is a short-term lease, typically lasting for six months to a year. This means that tenants are required to renew their lease or move out at the end of the agreed-upon term. This can be disadvantageous to tenants who plan on staying in the property for a longer period of time, as they may face the uncertainty of not knowing if their lease will be renewed or finding a new place to live.
- Lack of security: Unlike an assured tenancy, an AST does not provide tenants with long-term security of tenure. Landlords can easily terminate an AST at the end of the agreed-upon term without providing any reason or grounds for eviction. This can lead to a lack of stability and uncertainty for tenants.
- Difficulty in making modifications: ASTs are usually quite restrictive in terms of what tenants can and cannot do to the property. Tenants are often not allowed to make any modifications to the property without prior written consent from the landlord. This can be frustrating for tenants who want to make changes to the property to make it feel more like a home.
- Potential rent increases: Landlords have the right to increase rent at the end of each fixed-term agreement. This not only creates uncertainty for tenants but can also make the property unaffordable for those on a tight budget.
- Finite rental deposits: ASTs work on a fixed-term basis, which means that a tenant’s rental deposit is capped at a maximum of five weeks’ rent. This can be disadvantageous for landlords who require more upfront security in case tenants cause damage to the property or fall behind on rent.
- No negotiating power: In an AST agreement, the landlord sets the terms and conditions, and the tenant doesn’t have much negotiating power. This can be disadvantageous for tenants who want to negotiate a longer lease or the inclusion of certain amenities, but landlords may not be willing to do so.
Conclusion
While there can be advantages to an AST, such as flexibility and ease of use, it’s important to weigh those benefits against the potential disadvantages. If long-term security, stability, or the ability to make modifications to a property is important to a tenant, an AST may not be the best option.
| Advantages of Assured Tenancy | Advantages of Assured Shorthold Tenancy |
|---|---|
| Long-term security of tenure | Flexibility and ease of use |
| Tenants have more control over the property | Low rental deposits |
| Rent increases are restricted | Easy to terminate at the end of the term |
| Legal protection for tenants | Suitable for short-term rental |
Ultimately, the type of tenancy agreement a tenant chooses will depend on their individual needs and preferences.
Eviction process for assured tenancy and assured shorthold tenancy
Eviction is a serious and complicated process for both assured tenancy and assured shorthold tenancy. However, the main difference between these two tenancy types is the eviction process. Here are some key points to consider:
- Assured tenancy: If you are an assured tenant, your landlord must have a legal reason to evict you. The reasons could be rent arrears, breaches of tenancy agreement, or anti-social behavior. Before eviction, your landlord must serve you a notice to quit and then apply for a possession order from the court. If you still refuse to leave, the landlord can apply for a warrant for eviction, and the court bailiffs can forcibly remove you from the property.
- Assured shorthold tenancy: If you are an assured shorthold tenant, your landlord has more flexibility to evict you. Your landlord can use a ‘no-fault eviction’ by serving you a section 21 notice. This means that your landlord wants to regain possession of the property and does not need to give a reason. After serving the notice, the landlord must give you at least two months’ notice before applying for a possession order. If you refuse to leave, the landlord can apply for a warrant for eviction, and the court bailiffs can forcibly remove you from the property.
It is worth noting that if you receive a notice to quit or a section 21 notice, you should seek legal advice as soon as possible. You might have grounds to challenge the eviction or negotiate a longer notice period. It is always better to negotiate with your landlord upfront to avoid any legal complications later on.
Finally, both assured tenancy and assured shorthold tenancy have tenant rights that protect them from eviction and ensure proper legal procedures are followed. Therefore, tenants must be aware of their rights and seek legal advice if necessary.
| Assured Tenancy Eviction Process | Assured Shorthold Tenancy Eviction Process |
|---|---|
| Legal reason required to evict | No-fault eviction possible |
| Notice to quit required before possession order | Section 21 notice required before possession order |
| Possession order required before warrant for eviction | Possession order required before warrant for eviction |
| Landlord must go to court to evict tenant | Landlord must go to court to evict tenant |
Overall, the eviction process for assured tenancy and assured shorthold tenancy might seem similar, but the legal requirements and processes can be very different. It is therefore essential to know your rights, seek legal advice if needed, and always negotiate with your landlord to avoid any eviction complications.
What is the Difference between Assured Tenancy and Assured Shorthold Tenancy?
Q: What is an assured tenancy?
An assured tenancy is a long-term tenancy agreement where the tenant has the right to live in the property as long as they want, as long as they abide by the terms of the agreement.
Q: What is an assured shorthold tenancy?
An assured shorthold tenancy is a type of tenancy agreement that is commonly used in the UK. It is usually for a fixed term, such as six or twelve months, and the tenant has less security of tenure than with an assured tenancy.
Q: What are the main differences between the two types of tenancy?
The main difference is the level of security of tenure that each type of tenancy offers. With an assured tenancy, the tenant has more security and can stay in the property indefinitely, as long as they abide by the terms of the agreement. With an assured shorthold tenancy, the tenant has less security and usually only has the right to stay in the property for the duration of the fixed term.
Q: Can a landlord end an assured tenancy?
It is harder for a landlord to end an assured tenancy than an assured shorthold tenancy. They can only do so under certain circumstances, such as if the tenant breaches the terms of the agreement.
Q: Can a landlord increase the rent for an assured tenancy?
The landlord can only increase the rent for an assured tenancy if the terms of the agreement allow for it. They can’t increase the rent arbitrarily, and they need to give the tenant adequate notice of any increase.
The Bottom Line
We hope this article has helped you understand the difference between an assured and an assured shorthold tenancy. If you’re a tenant or a landlord, it’s important to understand your rights and obligations under each type of tenancy agreement. Thanks for reading and be sure to visit again later for more helpful tips!