Assured Shorthold Tenancy Agreement – Property Division

This article has been updated to reflect the Renters’ Rights Act 2025, which came into force on 1 May 2026. All references to Assured Shorthold Tenancy (AST) agreements and Section 21 have been updated accordingly.

Assured Periodic Tenancy Agreements are now the standard tenancy agreement for private landlords in England. Since 1 May 2026, when the Renters’ Rights Act 2025 came into force, all residential assured tenancies – including every existing Assured Shorthold Tenancy – automatically became assured periodic tenancies. If you want a simple, adjustable and printable template in PDF/Word format, you can find one via the link above.

But perhaps you’d like to understand more about how periodic tenancies now work, what they must contain, and what the changes mean for you as a landlord? If so, keep reading.

What is an Assured Periodic Tenancy Agreement?

An assured periodic tenancy (APT) is now the standard tenancy type for the private rented sector in England, replacing the former Assured Shorthold Tenancy (AST). It is a formal rental agreement that sets out the rights and responsibilities of both landlord and tenant – but unlike an AST, it has no fixed end date. Instead, it runs on a rolling basis, typically month to month, and continues until either party gives valid notice to end it.

All tenancies entered into from 1 May 2026 must be assured periodic tenancies from the outset. Any tenancy signed before that date automatically converted to an assured periodic tenancy on that date – no new paperwork was required for the conversion itself, though landlords were required to provide tenants with the government’s Renters’ Rights Act Information Sheet 2026 by 31 May 2026.

For all new tenancies entered into from 1 May 2026, landlords are legally required to provide tenants with a written statement of terms. This is, in effect, a written tenancy agreement – and the written statement must contain, as a minimum, the key terms specified by the government.

Protections Offered by an Assured Periodic Tenancy

Assured periodic tenancies are governed by the Housing Act 1988 as amended by the Renters’ Rights Act 2025, which provides the following legal protections and features:

• Open-ended structure – Tenancies run on a rolling basis with no fixed end date. Either the landlord or the tenant can bring the tenancy to an end by giving the correct notice, but there is no automatic expiry.
• Tenants can leave with two months’ notice – Tenants may serve notice to end the tenancy at any time. The minimum notice period is two months (or less if agreed in writing). Tenants are not locked in for a minimum period.
• Eviction requires Section 8 grounds – Landlords can only recover possession by serving a Section 8 notice, citing one or more valid statutory grounds. Section 21 ‘no-fault’ evictions have been abolished. All possession claims now require court action.
• 12-month security for new tenants – Landlords cannot use Ground 1 (landlord moving in) or Ground 1A (selling the property) within the first 12 months of a tenancy. This gives new tenants a guaranteed period of security from the tenancy start date.
• Rent can only increase once a year – Rent may only be increased once every 12 months, using the statutory Section 13 process. The landlord must give at least two months’ written notice using the prescribed Form 4. Any rent review clauses in tenancy agreements are overridden by this process. Tenants can challenge the increase at the First-tier Tribunal.
• Deposit protection still required – Landlords must protect deposits in a government-approved scheme. Failure to do so affects a landlord’s ability to use most Section 8 grounds to recover possession.
• Advance rent capped at one month – From 1 May 2026, landlords can only require one month’s rent in advance. Any provision requiring more than one month upfront is void. Rent cannot be requested before the tenancy agreement is signed by all parties.

How to Evict a Tenant: Section 8 Grounds Under the Renters’ Rights Act 2025

Section 21 ‘no-fault’ evictions have been abolished. Landlords can no longer serve a Section 21 notice under any circumstances. To recover possession, you must serve a Section 8 notice (using the new Form 3A) citing one or more valid statutory grounds. If the tenant does not leave, you must apply to the county court for a possession order.

Section 8 grounds are divided into mandatory grounds (where the court must grant possession if the ground is proven) and discretionary grounds (where the court weighs the circumstances and may grant possession). The key grounds landlords are likely to use most frequently include:

Mandatory Grounds

• Ground 1 – Landlord or close family member moving in: Cannot be used within the first 12 months of the tenancy. Requires 4 months’ notice.
• Ground 1A – Landlord intends to sell the property: Cannot be used within the first 12 months of the tenancy. Requires 4 months’ notice.
• Ground 4A – Student HMO: Allows possession of an HMO (3+ tenants sharing facilities) to re-let to a new cohort of students for the new academic year.
• Ground 8 – Serious rent arrears: The arrears threshold is now 13 weeks (or 3 months where rent is paid monthly). Arrears must exist both at the date of notice and at the court hearing. The notice period is 4 weeks. Eviction is not permitted where arrears arise from delays in Universal Credit payments.

Discretionary Grounds

• Grounds 10 & 11 – Persistent rent arrears or repeated delay: The notice period has been extended to 4 weeks, reinforcing the need for prompt landlord engagement and well-documented rent account records.
• Ground 14 – Anti-social behaviour: A no-minimum notice period applies – notice can be immediate. Courts must now consider the tenant’s engagement with the landlord’s interventions and the impact on other residents.

Note: Landlords must ensure the tenant’s deposit is held in a government-approved scheme before using most Section 8 grounds. Grounds 7A and 14 (anti-social behaviour) are exceptions to this requirement.

When Can an Assured Periodic Tenancy Agreement Be Used?

Assured periodic tenancy agreements are the default for almost all private residential lettings in England. However, they do not apply in every situation.

An APT agreement can be used when:

• The tenant rents from a housing association or a private landlord
• The tenancy began on or after 15 January 1989
• The home is the tenant’s main or only residence
• The landlord does not live with the tenant in the property

An APT agreement cannot be used when:

• The tenancy started before 15 January 1989
• The annual rent exceeds £100,000
• The rent is below £250 a year (£1,000 in London)
• The tenancy is for a business
• The property is used as a holiday let
• The ‘landlord’ is the local council

What to Include in an Assured Periodic Tenancy Agreement Template

From 1 May 2026, landlords must provide a written statement of terms for all new assured periodic tenancies. Here are the key details to include:

1. Basic information: The full names of the landlord, tenant(s), and any guarantor. The full address of the property and relevant contact details.
2. Tenancy start date and rent payment cycle: Since APTs have no fixed end date, there is no tenancy end date to state. Instead, clearly set out the date the tenancy begins and the rent payment cycle (typically monthly).
3. Rent and payments: The amount of rent, the due date each period, the method of payment (e.g. bank transfer, standing order), and any penalties for overdue rent.
4. Deposit protection and deposit amount: This is typically equivalent to five weeks’ rent (or six weeks if annual rent exceeds £50,000). State which government-approved deposit protection scheme is used. Include the conditions for returning the deposit at the end of the tenancy.
5. Tenant and landlord responsibilities: A clear list of obligations for both parties – paying rent on time, property upkeep, reporting repairs promptly, keeping good relations with neighbours, and allowing reasonable access. Landlord obligations include keeping the property safe and in good repair, protecting the deposit, and following correct possession procedures under Section 8.
6. Bills and utilities: Clarify who is responsible for council tax, electricity, gas, water, broadband, and so on, and whether any bills are included in the rent.
7. Use of the property: Confirm that the property is for residential use only, and whether subletting, lodgers, or pets are permitted.
8. Repairs and maintenance: Landlord responsibility for structural repairs, heating, plumbing, and so on. Tenant responsibilities include basic maintenance, keeping the property clean, and reporting issues promptly.
9. Inspections and right of entry: The landlord must give the tenant a minimum of 24 hours’ notice before entering the property for inspections or repairs.
10. Ending the tenancy: Tenants can end the tenancy at any time with two months’ written notice (or a shorter period if agreed in writing). Landlords must use Section 8 grounds and serve the appropriate notice period for the ground being used. Include how the property should be left on departure, and any grounds for deposit deductions (e.g. damage beyond fair wear and tear).
11. Rent increases: Under the Renters’ Rights Act, rent can only be increased once every 12 months using the Section 13 statutory process. Any rent review clause in the agreement is overridden by this process. Two months’ written notice using Form 4 is required.
12. Additional clauses (if applicable): Whether smoking indoors is permitted; a list of any included furniture or appliances; garden maintenance responsibilities; and a guarantor agreement if required.
13. Signatures: Both parties must sign and date the agreement for it to be legally binding.

Pros and Cons of Assured Periodic Tenancy Agreements

Advantages for Landlords

• Legal framework – Provides a clear legal structure outlining rights and obligations, reducing disputes. APTs are now the universal standard, so advice and precedent are plentiful.
• No need for renewals – The tenancy continues automatically month to month. There are no fixed-term expiry dates to manage or renew, reducing administrative work.
• Deposit protection – Required by law, introducing a neutral third party and reducing legal risk from deposit disputes.
• Grounds for possession now codified – The expanded Section 8 grounds – including Ground 1 (landlord moving in), Ground 1A (intent to sell), and Ground 8 (serious arrears) – give landlords clearly defined routes to recover possession.
• Market rent reviews – Landlords can increase rent once a year using the Section 13 process, with the tribunal acting as a check against unreasonable increases.

Disadvantages for Landlords

• Possession is more complex – Every eviction now requires court action and a valid Section 8 ground. There is no ‘no-fault’ option. The process typically takes longer than the old Section 21 route.
• 12-month restriction on key grounds – Landlords cannot use Grounds 1 or 1A (to move in or sell) for the first 12 months of a tenancy, limiting early exit options.
• Longer arrears threshold for mandatory possession – Ground 8 now requires 13 weeks (or 3 months) of arrears, and they must persist through to the court hearing.
• Deposit scheme compliance – Landlords must protect deposits and provide prescribed information. Failure to do so prevents use of most Section 8 grounds.
• Rent increases are procedural – Any rent review clause in the tenancy agreement is overridden by the Section 13 statutory process, adding a formal notice step to any increase.

Frequently Asked Questions: Assured Periodic Tenancy Agreement

Get Your Free Assured Periodic Tenancy Agreement Template

By now, you should have a solid understanding of how assured periodic tenancies work under the Renters’ Rights Act 2025, what they must contain, and how landlords can recover possession using Section 8 grounds. If you’re ready to create your document, use the template link here – it’s customisable, printable, and can be downloaded in Word or PDF format.