Guide to Tenancies

Updated May 2026

Introduction

Many landlords feel that the formalities and administrative requirements involved in tenancies can be difficult to navigate.

At Cover4LetProperty, we recognise these concerns and aim to explain the key points as clearly and simply as possible. Here we will try to focus on the core issues associated with Assured Periodic Tenancies in England. Different legislation applies in Wales, Scotland and Northern Ireland.

UPDATE May 2026:

The Renters’ Rights Act has introduced significant changes to private residential tenancies in England. Most Assured Shorthold Tenancies (ASTs) have now been replaced by Assured Periodic Tenancies, which run on a rolling basis rather than for a fixed term.

Landlords can no longer rely on Section 21 “no-fault” eviction procedures. Instead, possession must normally be sought using specific statutory grounds such as sale of the property, landlord occupation, or tenant breach of agreement.

Additional changes include restrictions on rent increases, new rights for tenants to request permission to keep pets, and limits on rent requested in advance.

Some tenancy types remain outside these reforms, so landlords should check whether the legislation applies to their particular circumstances.

Implementation details continue to evolve, and some tenancy categories are treated differently under transitional provisions, so landlords should always check the latest official guidance before relying on any summary of the legislation.

Warning

The nature of any given tenancy may have important legal ramifications for you as a landlord.

What follows is a general discussion and not qualified legal advice. If you are in any doubt as to a course of action, you should consider seeking expert and qualified legal input.

Please note that the information is based on our understanding of current legislation as of the date of writing, but legislation may change. We cannot be held responsible for any errors, loss or omissions.

What is a tenancy?

A tenancy is a framework of rules and regulations that governs the relationship between you and your tenants.

Although there may technically be legal differences between a tenant and someone lodging in your home (sometimes also termed a licensee) the fact is that the relationship between you and someone paying you any sort of rent will be governed by law.

That law can be expressed in one or more of several different ways:

• It can be enshrined in legislation – in this format, you cannot vary whatever the law prescribes even if you and your tenant agree otherwise in writing;
• the interpretation of relevant legislation that is written down and presented in the form of a tenancy agreement; and
• variations of the previous two formulations, except that the law is reflected by way of a verbal agreement or agreements.

In other words, even if you have tenants in your property and not a single piece of paper exists to govern the relationship between you, they will still have a significant number of legal rights as laid down in the law.

Types of tenancy

There are a large number of variables relating to the types of tenancy that might have been granted – and they can all make the position for an individual landlord somewhat different:

The date the tenancy commenced

• broadly speaking, if your tenants have been with you since before the 1990s or from before 1989, these historic tenancies are likely to differ substantially from those of today but, since they represent only a minority of cases, brevity dictates that we won’t be discussing them further here;

Your own place of residence

• if you share the same living spaces as someone paying rent to you and they have no area that is clearly and distinctly their own (where you have no right of entry), a different category of legal framework will apply – arrangements such as this are frequently described as creating a lodger arrangement;

The part of the UK your property is in

• even if the types of tenancies go by more or less the same name, the formal, legal interpretation may vary depending upon which country of the United Kingdom your property is in;

The amount of annual rent charged

• if the amount is above or below certain specified annual limits, that might directly affect the type of tenancy agreement you can use.

This is just a small sample of some of the issues that may decide what type of tenancy agreement you must use, or which is likely to be most appropriate.

Assured Tenancies and Assured Periodic Tenancies in England

Historically, the Assured Shorthold Tenancy (AST) was the most common form of private residential letting in England and Wales. Following implementation of the Renters’ Rights Act in May 2026, most ASTs in England have now transitioned, or are transitioning, to Assured Periodic Tenancies.

In Wales, ASTs were replaced earlier under the Renting Homes (Wales) Act 2022 with occupation contracts, including standard occupation contracts that set out the rights and responsibilities of landlords and contract-holders. Further guidance on tenancy arrangements in Wales is available from the Welsh Government.

These tenancies run on a rolling basis rather than for a fixed term and now form the default legal structure for the majority of new private residential lettings in England.

Assured Tenancies

This type of tenancy essentially means that you will not be able to regain possession of your property unless your tenant breaks the terms of the tenancy agreement – that might be in terms of tenants having become a social nuisance to others around them or for failing to pay the rent.

Assured Periodic Tenancies

Under the current legal framework, most private residential tenancies are now periodic from the outset rather than fixed-term.

This means:

• there is no fixed end date written into the agreement;
• tenants may normally leave by giving notice (typically two months);
• landlords may regain possession only by relying on statutory grounds; and
• the former Section 21 “no-fault” eviction process is no longer available.

These changes are intended to provide greater long-term security for tenants while still allowing landlords to recover possession where legally justified.

Points to note on Assured Tenancy structures

Against this general background outlining the essential nature of assured tenancy structures, some additional points need to be taken into account:

• Assured Tenancies of either type do not apply to holiday let or other commercial arrangements;
• if your tenant has an existing Assured Tenancy, the tenancy structure cannot normally be changed without agreement and compliance with current statutory requirements;
• if you do have any tenants that have been in place since before 1997, by default they may probably be deemed to hold an Assured Tenancy and not an Assured Shorthold Tenancy;
• if you wish to set up an Assured Tenancy with a tenant, you must declare it in writing to them – historically, in the absence of such a declaration, the tenancy would normally have been treated as an Assured Shorthold Tenancy under the previous legal framework;
• it is typically a requirement for you to seek the permission of the freeholder of your property or your mortgage provider, before using it for rental income purposes – whether you are granting an Assured Tenancy or an Assured Periodic Tenancy, permission may be explicitly or implicitly given subject to the tenancy arrangements permitted under your lease or mortgage conditions.

Additional points following the Renters’ Rights Act

Landlords should also be aware that:

• most existing Assured Shorthold Tenancies transitioned to periodic tenancies from May 2026, subject to transitional provisions affecting certain tenancy types and circumstances;
• rent increases are generally limited to once per year using prescribed procedures;
• landlords are restricted from requiring multiple months’ rent in advance as a condition of granting a tenancy, except in limited circumstances;
• tenants have the right to request permission to keep a pet and landlords must consider such requests reasonably, although permission does not have to be granted in every case;
• blanket refusals to let to tenants with children or those receiving benefits are restricted under the new framework, although landlords may still make decisions based on reasonable affordability and suitability criteria.

These requirements form part of wider reforms to the private rented sector in England introduced by the Renters’ Rights Act.

Summary

With successive changes to the raft of legislation over the previous 15 or 20 years, tenancies have become steadily more complicated than at any time in the past.

Although Assured Shorthold Tenancies were historically the most widely used tenancy structure in England, the legal framework has now changed significantly. Most private residential tenancies are instead periodic from the outset, with possession rights governed by statutory grounds rather than fixed contractual terms.

Landlords should therefore ensure they are familiar with the updated tenancy regime before granting or renewing agreements.

Nevertheless, it’s important to bear in mind the numerous exceptions to the generalities of all that we’ve mentioned so far.

Further reading: the charity Shelter has more information on the different types of tenancies for England,  Scotland and Wales.

Disclaimer

The Renters’ Rights Act is being introduced in stages and some tenancy types may be treated differently depending on the property type, tenant category or letting arrangement. The information provided here is intended for general guidance only and reflects a broad understanding of the legislation at the time of writing.

While every effort is made to ensure accuracy, Cover4LetProperty accepts no responsibility for any reliance placed on this information or for any loss arising from its use. Readers should always check the latest official guidance or seek suitably qualified professional advice before taking action based on any summary of the legislation.

Please note that this information is based on the author’s current understanding of law, which may be liable to change. Always seek professional advice if you are unsure.