There are several different types of tenancy agreement in the United Kingdom.
Each one provides different conditions and suits different circumstances.
Below are the five main types of tenancy agreement in the UK.
1. Assured Shorthold Tenancy (AST)
Assured shorthold tenancies are the most common type of tenancy agreement in England and Wales.
They allow tenants to live in a property for a fixed period (often 1 year, but not always).
They can’t break this type of tenancy agreement early unless there’s a ‘break clause’, which is rare.
And the landlord cannot evict them early unless they (the tenant) break the contracts’ terms, which includes problem tenant behaviour, such as:
- Anti-social levels of noise
- Failing to pay rent
- Property damage.
Tenants also can’t use the residence primarily for commercial purposes in many contracts (but they can register a business from it).
2. Excluded Tenancy
An excluded tenancy agreement is when tenants share living spaces with their landlord (i.e., a kitchen or bathroom is typical).
Under this agreement, tenants are ‘excluded occupiers’ and have fewer rights than ‘typical’ tenants.
For example, landlords can end this agreement or increase rent whenever they want (though they must give tenants fair notice).
3. Assured Tenancy
Assured tenancies are becoming less common in Britain. They give tenants the right to live in a house for a set period, including indefinitely.
They get their name from the fact that tenants are ‘assured’ the right to live in a property as long as they want.
They have protected rights and can’t be evicted without a reason. But they can leave if they wish.
They were introduced between 15th January 1989 and 27th February 1997. Tenants who signed contracts during these years may have one.
They often exist in housing association properties and council houses.
4. Regulated Tenancy
A regulated tenancy ensures that a rental payment never exceeds the market rate.
It’s thus regulated against the market by a rent assessment committee.
Tenants also can’t be evicted without a fair reason, giving them strong rights.
And they (tenants) also have the right to pass the tenancy arrangement on to a family member when they pass away.
Regulated tenancy can only apply to tenancies starting before 15 January 1989.
5. Periodic Tenancy
A periodic tenancy exists on a rolling basis, from week to week or month to month. There’s no fixed end date.
Both the landlord and the tenant can cease the agreement by giving notice.
A periodic tenancy can start if a fixed-term tenancy ends without being renewed. It can also be created by mutual agreement.
Tenants can be evicted or have their rent increased quite easily from this type of tenancy. As long as their landlord gives the correct notice.
This means that your rights are not quite as strong as other types of tenancy agreement.