Assured Shorthold Tenancy (AST)
Assured Shorthold Tenancy is the legal tenancy type that governed most private residential lettings in England from 1988 until 1 May 2026, when the Renters' Rights Act 2025 abolished it. ASTs carried statutory deposit protection obligations and gave landlords access to the Section 21 no-fault possession route, both of which no longer apply to new tenancies.
What was an Assured Shorthold Tenancy and when did it apply?
An Assured Shorthold Tenancy was created by the Housing Act 1988 and became the default residential tenancy type in England from 28 February 1997 onwards. Any private letting to an individual occupying a property as their only or principal home was automatically an AST unless specific statutory exceptions applied. It provided landlords with limited security of tenure, giving tenants the right to occupy the property for the agreed term but allowing landlords to recover possession at the end of it without needing to establish fault.
What rights and obligations came with an AST?
Two obligations sat at the core of the AST regime. First, deposit protection: where a landlord took a deposit, they were required under the Housing Act 2004 to protect it within an authorised scheme within 30 days of receipt and to provide the tenant with prescribed information. Failure to protect the deposit within that period barred the landlord from serving a valid Section 21 notice and exposed them to a court-ordered penalty of between one and three times the deposit amount.
Second, Section 21 of the Housing Act 1988 allowed landlords to seek possession without citing a fault ground, provided they gave at least two months' written notice. This no-fault eviction route was a defining feature of the AST and gave landlords a straightforward path to recover possession at the end of a fixed term.
What changed on 1 May 2026?
The Renters' Rights Act 2025 received Royal Assent on 27 October 2025. Section 2 of that Act abolished the assured shorthold tenancy regime by removing Chapter 2 of Part 1 of the Housing Act 1988, with effect from 1 May 2026. From that date, no new ASTs can be created. Existing private ASTs automatically converted to assured periodic tenancies, ending fixed terms and giving tenants the right to remain until they choose to leave by giving two months' notice. Section 21 no-fault eviction notices were simultaneously abolished.
Landlords who had served a valid Section 21 notice before 1 May 2026 had a limited window to initiate court proceedings. Based on Schedule 6 of the Act, specialist legal commentary indicates that window closed on 31 July 2026, though operators should confirm the precise deadline for any specific notice with legal advisers.
What does this mean for PBSA operators specifically?
Purpose-Built Student Accommodation operators have a critical carve-out. Private PBSA providers that are members of a government-approved code of practice -- the ANUK/Unipol Code of Standards for Larger Developments is the approved framework qualifying operators for this exemption from 1 May 2026 -- can grant fixed-term common law tenancies aligned to the academic year rather than falling into the standard assured periodic tenancy regime. This preserves the ability to take vacant possession at the end of each academic year and to collect multiple rent payments upfront.
Qualifying PBSA operators also gained access to a new Ground 4A possession route under the Act, primarily under transitional provisions covering existing tenancies already in place at commencement. The detail of how Ground 4A applies to new tenancies going forward is set out in the Act and accompanying regulations, and operators should take specialist advice on how it applies to their specific situation.
From an operational standpoint, code membership has moved from a mark of sector good practice to something that advisers in the sector regard as both an operational and an investment-underwriting requirement, given that fixed-term tenancy rights depend on it entirely.
Key takeaways
- The AST was the default private residential tenancy in England from 28 February 1997 until it was abolished by the Renters' Rights Act 2025 on 1 May 2026.
- ASTs required deposit protection within 30 days of receipt; failure blocked Section 21 notices and exposed landlords to a penalty of one to three times the deposit amount.
- Section 21 no-fault eviction was abolished alongside the AST regime from 1 May 2026; existing ASTs automatically converted to rolling assured periodic tenancies.
- PBSA operators can still let on fixed-term tenancies, but only through code membership under the ANUK/Unipol framework; this has shifted from best practice to an operational and investment requirement.
- HubSpot, properly configured, can surface tenancy type, notice obligations, and possession ground eligibility as trackable CRM properties -- removing compliance risks that previously lived in spreadsheets.
How Cloudfox Helps With Assured Shorthold Tenancy
The transition from ASTs to assured periodic tenancies on 1 May 2026 added compliance obligations and changed how possession timelines work. For PBSA and BTR operators, tenancy records, notice periods, and possession workflows that previously aligned to fixed terms now need to reflect rolling periodic agreements.
HubSpot, configured properly, can track tenancy type, notice dates, and possession ground eligibility as contact and deal properties, so nothing falls through the gap between a legacy AST and its converted status. If your PBSA operation is pursuing or maintaining code membership under the ANUK/Unipol framework, Cloudfox can build the compliance-tracking workflow inside your CRM so tenancy audits and notice obligations surface as tasks rather than risks. Find out how we structure operator systems at cloudfox.it/what-we-do.
Frequently Asked Questions About Assured Shorthold Tenancy
Do ASTs still exist after 1 May 2026?
No. The Renters' Rights Act 2025 abolished the assured shorthold tenancy regime from 1 May 2026. New ASTs cannot be created. Existing ASTs automatically converted to assured periodic tenancies on that date, with limited exceptions where a valid Section 21 or Section 8 notice had already been served before 1 May 2026.
Can PBSA operators still offer fixed-term tenancies after the AST was abolished?
Yes, but only through the common law tenancy route. Private PBSA providers that are members of a government-approved code of practice -- the ANUK/Unipol Code of Standards for Larger Developments -- can grant fixed-term common law tenancies aligned to the academic year. Operators not registered with an approved code fall into the standard assured periodic tenancy framework.
Was deposit protection mandatory under an AST?
Yes. Under the Housing Act 2004, any landlord who took a deposit on an AST was required to protect it within an authorised tenancy deposit scheme within 30 days of receipt and to provide the tenant with prescribed information. Failure to do so prevented the landlord from serving a valid Section 21 notice and exposed them to a court-ordered penalty of between one and three times the deposit amount.
What was Section 21 and why does it matter now?
Section 21 of the Housing Act 1988 allowed landlords to seek possession of a property let on an AST without having to establish fault or a specific ground, provided they gave at least two months' written notice. It was abolished from 1 May 2026 as part of the Renters' Rights Act 2025. Landlords who had served a valid Section 21 notice before that date had a limited window after commencement to initiate court proceedings; legal commentary indicates that window closed on 31 July 2026, but specific deadlines should be confirmed with legal advisers.
What is an assured periodic tenancy and how does it differ from an AST?
An assured periodic tenancy is a rolling tenancy with no fixed end date, giving tenants the right to remain in the property until they choose to leave by giving two months' notice. It replaced the AST as the default private tenancy type from 1 May 2026. Unlike an AST, it cannot be ended by a no-fault Section 21 notice; a landlord must establish a statutory possession ground under Section 8 of the Housing Act 1988.