Assured and Assured Short-hold Tenancies in UK

Both assured and assured short-hold tenancies are the most common methods of residential leases in the United Kingdom. They were introduced by the Housing Act 1988 in their current form. This Act initially set the Assured tenancy as the default, which has is more tenant friendly. The Housing Act 1996, which came into effect from 28th of February 1997, however, ensured that the Assured short-hold tenancy was to be used unless otherwise stated.

There other types of leases but the following are the caveats where the assured or assured short-hold tenancy can be used:

• the tenancy is between the "private" tenant and "private" landlord
• the tenancy starts after the 15th of January 1989
• the property is rented as separate accommodation and it is the tenant's main residence.

Both types of tenancy can be be in 2 forms:

1. fixed term: this type of lease runs for a fixed period of time
2. periodic: this type of lease runs indefinitely from one rent period to the next

Furthermore, a tenancy can not be an Assured or an Assured Short-hold Tenancy (AST) if:

• the pure rental income is greater than £25000 per year
• the total yearly rent is less than £250 (this maximum limit for Greater London is £1000);
• agricultural tenancies
• a educational body such as a college or a university grants a tenancy to a student
• when letting a holiday property is involved (there are certain conditions on this)
• the landlord is classed as a resident landlord
• a tenancy where the landlord is the local authority, Crown or a Government Department (there are certain conditions on this)

The main difference between the 2 types of tenancies is the way the landlord can gain possession. With the Assured tenancy, it is harder for the landlord to regain possession, and there needs to be a ground for this. Whereas with the AST, the landlord can seek repossession of the property without grounds.