Tenancy agreements set out the legal terms and conditions that tenants and landlords must abide by for the duration of the contract. Both parties can agree to either:

  • A fixed-term tenancy agreement (typically for 6-12 months)
  • A periodic tenancy agreement (running on a weekly or month-by-month basis)

In the UK, there are 6 standard types of tenancy agreements. However, due to changes in legislation regarding Tenancy Deposit Protection (TDP) Schemes and possession proceedings, the most common tenancy agreements are ‘Assured Shorthold Tenancy Agreement (AST)’ or ‘Company Let Agreement’.

Assured Shorthold Tenancy Agreement (AST)

This is the most common form of letting arrangement for residential properties in the UK. Tenancies created after February 1997, are automatically allocated to this type of tenancy agreement. ASTs can only be created if:

  • The tenant is an individual, not a company, charity or trust
  • The tenancy started on or after 15 January 1989
  • The property is the tenant’s only or main home
  • The rent does not exceed £100,000 per annum.

Company Let Agreement

A company let agreement allows limited companies and limited liability partnerships (LLP) to rent commercial property for a fixed amount of time. Company Lets are governed by the Law of Property Act 1925, instead of the Housing Act 1996, which means that the tenant is not recognised as an ‘individual’ and will not be given the same protection as AST’s. Therefore, landlords and business tenants that enter Company Let Agreements must agree on and recognise procedures for:

  • The types of occupiers allowed
  • Rent increase notices
  • Eviction

If you need further information on the ins and outs of tenancy agreements, don’t hesitate to contact our team of experts on 020 3376 1888. We can also provide details on our range of convenient payment plans, which are designed to help individuals struggling with costly legal cases manage their legal fees effectively.

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