Signing an Assured Shorthold Tenancy (AST) is one of the most significant financial commitments most people make. Yet most tenants spend less than five minutes reading a document that will govern where they live for the next 12 months or more. This guide walks you through every critical clause to check before you put pen to paper.
1. Confirm Your Tenancy Type
The vast majority of private residential tenancies in England created since 1997 are Assured Shorthold Tenancies under the Housing Act 1988. Your agreement should state this clearly. If the rent exceeds £100,000 per year, or if the property is a company let, different rules may apply. Scotland uses a different system entirely — the Private Residential Tenancy (PRT) — so this guide applies primarily to England and Wales.
2. Rent and Rent Increases
Check precisely what the monthly rent is, when it is due, and how it should be paid. Equally important is what the agreement says about rent increases.
A lawful rent increase clause in a fixed-term AST should require the landlord to use a Section 13 notice (or a rent review clause in the agreement). Be very cautious of any clause that says rent can be increased at the landlord's "sole discretion" at any time — this is likely unfair and potentially unenforceable under the Consumer Rights Act 2015.
Watch out: Clauses that allow the landlord to increase rent more than once per year, or without a fixed notice period, are red flags. Always ask what the current market rent is before agreeing to any uncapped review mechanism.
3. Deposit Rules — What You Must Know
Under the Housing Act 2004, landlords must protect your deposit in a government-approved Tenancy Deposit Scheme within 30 days of receiving it. The three approved schemes in England are the Deposit Protection Service (DPS), MyDeposits, and the Tenancy Deposit Scheme (TDS).
Your agreement should state:
- The exact deposit amount
- Which scheme the landlord will use
- The circumstances in which deductions can be made
The maximum deposit is capped at five weeks' rent for tenancies with an annual rent under £50,000 (or six weeks if rent exceeds £50,000), under the Tenant Fees Act 2019. Any agreement requiring a higher deposit is unlawful.
4. Prohibited Fees Under the Tenant Fees Act 2019
Since 1 June 2019, landlords and letting agents in England are banned from charging most fees to tenants. Only the following "permitted payments" are allowed:
- Rent
- A capped tenancy deposit (see above)
- A holding deposit (capped at one week's rent)
- Charges for late rent (after 14 days, capped at 3% above the Bank of England base rate)
- Charges for lost keys (capped at the reasonable cost of replacement)
- Changes to the tenancy requested by the tenant (capped at £50)
- Early termination fees requested by the tenant (must not exceed the landlord's actual financial loss)
Illegal clauses to look for: Any reference to administration fees, reference fees, renewal fees, check-in fees, inventory fees, or professional cleaning fees as a mandatory charge at the start of tenancy — these are all prohibited under the Tenant Fees Act 2019.
5. Break Clauses
A break clause allows either the landlord, the tenant, or both to end the tenancy before the fixed term expires, provided the correct notice is given. Break clauses are not a legal requirement but are common in longer ASTs.
Check carefully:
- Who has the right to break (tenant only, landlord only, or mutual)
- When the break can be exercised (e.g., after six months)
- How much notice is required (typically two months)
- Whether any preconditions apply (e.g., rent must be fully up to date)
Courts have historically been strict about how break clauses must be exercised. If the agreement requires written notice by first-class post by a specific date, an email will not suffice.
6. Repair and Maintenance Obligations
Under the Landlord and Tenant Act 1985, the landlord is legally required to maintain:
- The structure and exterior of the property
- Heating and hot water installations
- Gas and electrical installations
- Sanitary fittings (baths, sinks, toilets)
Any clause that attempts to transfer these obligations to the tenant is likely void. Tenants are generally responsible for keeping the property in a "tenant-like manner" — meaning minor maintenance like changing light bulbs and keeping the property clean and aired to prevent condensation.
7. Notice Periods for Ending the Tenancy
During the fixed term, neither party can typically end the tenancy without the other's agreement (unless there is a break clause or the other party has seriously breached the agreement). Once the fixed term ends, the tenancy usually becomes a statutory periodic tenancy.
To end a periodic tenancy, you must give at least one month's notice (if paying monthly rent), aligned to the rental period. Your landlord must serve a valid Section 21 notice (no-fault eviction) or Section 8 notice (fault-based) to regain possession. Under the Renters' Rights Bill (expected to pass in 2025), Section 21 "no-fault" evictions will be abolished — check current guidance when signing.
8. Landlord's Right to Enter
A lawful tenancy agreement must give you "quiet enjoyment" of the property. Any clause allowing the landlord to enter without notice, or with less than 24 hours' notice except in genuine emergencies, is problematic and potentially in breach of the Protection from Eviction Act 1977.
9. Inventory and Check-In Report
Insist on a detailed written and photographic inventory before you move in, signed by both parties. This is your primary protection against unfair deposit deductions at the end of tenancy. Your agreement should reference when the inventory will be completed and who will conduct it.
10. The Landlord's Identity and Right to Let
Before signing, ask to see proof of the landlord's identity and confirm they own the property (Land Registry searches cost £3 and can be done online). If you are dealing with an agent, ask for the agency's details and confirm the landlord has authorised them. Under the Housing Act 1988, you have a legal right to the landlord's name and address.
Tip: Check that the property is not subject to a mortgage with a buy-to-let lender that prohibits letting — if the landlord's mortgage is called in, your tenancy could be at risk.
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