Assured Shorthold Tenancy

What exactly is meant by Assured Shorthold Tenancy?

This refers to a form of tenancy, which involves a type of arrangement between a private residential landowner and his tenant who rents his property.

It’s worth mentioning that all the tenancies created on January 15, 1989 and after that, are automatically considered as Assured Shorthold Tenancies, provided no special notice is given to indicate otherwise. This means that even if there is no written agreement or oral contract between a tenant and landowner, the tenancy will be considered as Assured Shorthold Tenancy. As a result; both tenants and landlords are completely protected and secured by Housing Act 1996 and Housing Act 1988.

Requirements for obtain an Assured Shorthold Tenancy

There are actually many factors that are used to determine if a tenant or a landowner are eligible for Assured Shorthold Tenancy. If the agreement fulfils all the following criteria then it will certainly act as Assured Shorthold Tenancy.

  • If the annual rent of a tenant is less than £25,000.
  • Any tenant shifted to a new property on Feb 28, 1997 or after that.
  • If a tenant uses the services of a private landlord to rent a property
  • If a tenant has certain rights in the property for privacy, and landlord cannot make an entry into the property without going through a mutual agreement

A tenancy will NOT be considered an Assured Shorthold Tenancy under following conditions:

There are actually several factors that are used to determine if a tenant or a landowner are NOT eligible for Assured Shorthold Tenancy. If the agreement fulfils all the following criteria then the tenancy will not considered as Assured Shorthold Tenancy.

  • If the annual rent of a property is more than £50,000
  • If the rent of a property is very low, or property receives no rent at all.
  • If a property acts as a holiday home
  • If a property is rented out to a private limited company
  • If the government or crown owns the property
  • If a property is rented out with the agriculture land that is more than 2 acres, or the property comes under agricultural tenancy.