What is a AST and when should it be used?

AST and UK Housing

An AST, or Assured Shorthold Tenancy, is is governed by the Housing Act 1988 in the UK and is the most common type of tenancy agreement used in the UK housing market. It provides tenants with a legal right to occupy a property for a fixed period, usually six or twelve months. The agreement sets out the terms of the tenancy, including rent, deposit, and any other responsibilities of the tenant and landlord. It is important for both tenants and landlords to understand their rights and obligations under an AST.

If either the tenant or landlord wants to end the tenancy before the fixed period has expired, they may be able to do so by mutual agreement. However, if either party wishes to end the tenancy before the end of the fixed period and the other party does not agree, they will need to follow specific legal procedures.

When a tenancy agreement is in place for a fixed term, neither the tenant nor the landlord can end the agreement during that time period, unless certain conditions are met. These include:

• The landlord regaining possession through a statutory notice
• The tenancy becoming frustrated by an unforeseeable event
• A break clause in the agreement allowing for early termination
• Mutual agreement between both parties.

If none of these conditions are met, the tenancy will continue until at least the end of the fixed term. In most cases, the tenancy will continue beyond that until either the tenant or landlord serves a notice to end it.

Just a word or warning, only a tenant or court can end a tenancy – if a landlord wishes to end a tenancy then they must follow a specific legal procedure.

A fixed-term tenancy, such as an AST, is a lease that is granted for a specific period of time, such as six or twelve months. When the fixed term ends, the tenancy will automatically end unless the tenant remains in occupation. If the tenant stays on, the tenancy will continue as a periodic tenancy, regardless of what the tenancy agreement states and will still remain protected by the housing act.

An AST should be used when the following conditions are met:

• The rental amount for a property is from £250 to £100,000 per year.
• The tenancy is granted to individuals rather than organizations or a company
• The property is intended to be the tenant’s main residence.
• The landlord does not reside in the same property as the tenant.

It is important to seek professional advice in these situations to ensure that the correct procedures are followed. Failure to follow the proper procedure could result in the tenant being entitled to additional time in the property, or the landlord facing legal action for unlawful eviction.