Tenancy types in England — A landlord's guide

This guide explains the main tenancy types available to England landlords, how the Renters’ Rights Act reshapes the landscape from 1 May 2026, and the important distinction between a tenancy and a licence. Reviewed March 2026.

What the rule is

The Housing Act 1988 created the Assured Shorthold Tenancy (AST) as the default residential tenancy type in England. An AST applies automatically when:

• The property is let as the tenant’s only or principal home
• The annual rent is between £1,000 and £100,000 (as updated)
• The landlord is not the Crown, a local authority, or a registered provider
• The tenant is an individual (not a company)

Where any of these conditions are not met, the tenancy may be an ordinary assured tenancy, a regulated tenancy (very rare — pre-1989 lettings), or something else entirely.

An AST has historically allowed landlords to grant a fixed term (typically 6 or 12 months) and then recover possession relatively easily at the end using a section 21 “no-fault” notice. From 1 May 2026 this changes fundamentally.

What changed on 1 May 2026

The Renters’ Rights Act 2025 abolishes fixed-term Assured Shorthold Tenancies. From 1 May 2026:

• All new tenancies must be periodic (rolling) from day one
• All existing fixed-term ASTs automatically convert to periodic tenancies on their next renewal or expiry after 1 May 2026
• Section 21 no-fault evictions are abolished — landlords must use one of the grounds in the reformed section 8 procedure to recover possession
• Tenants are entitled to serve 2 months’ written notice to end a periodic tenancy at any time
• Landlords can only end a tenancy by serving a valid section 8 notice citing a specified statutory ground

Landlords should review their tenancy agreements to remove references to fixed terms, automatic renewal clauses, and section 21 procedures, all of which are now redundant.

When it applies

The type of tenancy created depends on the circumstances at the point the agreement is entered into. Labels matter less than substance — if an agreement walks and talks like a tenancy, the court will treat it as one regardless of what it is called.

The reformed periodic AST regime applies to virtually all private rented residential lettings in England from 1 May 2026 onward.

Other tenancy and occupier types

Assured tenancy (non-shorthold). Before 1997, landlords could grant ordinary assured tenancies with stronger security of tenure. These are now rare for new lettings but some older tenancies still exist.

Company let. Where a company (rather than an individual) is the tenant, the Housing Act 1988 does not apply. A company let uses a contractual licence or lease, with terms set purely by the agreement. However, if it is obvious the company is acting as a nominee for individuals, a court may look through the arrangement.

Licence. A licence is a personal permission to occupy, not a tenancy. Licences are appropriate where:

• The occupier shares living accommodation with the landlord (a lodger arrangement)
• The arrangement genuinely lacks exclusive possession of any defined space

Courts focus on the reality of the arrangement. Granting a “licence” to someone who has exclusive possession of self-contained accommodation is likely to be treated as a tenancy regardless of the label.

Excluded occupier. Where a landlord lives in the property and the occupier shares accommodation with them (such as a kitchen or bathroom), the occupier is an excluded occupier. Excluded occupiers have very limited legal protection — the landlord can ask them to leave with reasonable notice and does not need a court order.

Holiday let. Where a property is let genuinely for a holiday, it is not an AST. The occupier has no security of tenure. HMRC and the courts scrutinise purported holiday lets — the arrangement must be genuine.

What evidence to keep

• A copy of the tenancy agreement showing the type and commencement date
• Evidence that any periodic tenancy started as periodic rather than converting mid-term (post-May 2026)
• Where a licence is used, evidence that the landlord genuinely shares living accommodation

Common mistakes

Calling a tenancy a licence to avoid tenant rights. Courts disregard labels where the substance is a tenancy. If the occupier has exclusive possession and pays rent, they almost certainly have a tenancy.

Issuing a section 21 notice after 1 May 2026. Section 21 is abolished. Serving one after the abolition date is invalid and could attract penalties.

Not updating template agreements. Agreements referencing fixed terms, automatic renewal, or section 21 are out of date from 1 May 2026.

Assuming a company let avoids all regulation. Company lets avoid the Housing Act 1988, but the property must still comply with all safety requirements (gas, electrical, fire).

Confusing an excluded occupier with a full tenant. An excluded occupier arrangement only works where the landlord genuinely lives in the property and shares facilities. Getting this wrong means the occupier may have full tenant rights.

FAQ

What is the default tenancy type if I do not specify? From 1 May 2026, any new residential letting that meets the Housing Act 1988 criteria will automatically be a periodic assured tenancy. There is no longer a fixed-term option.

Can I still grant a 12-month fixed term? No. From 1 May 2026, fixed-term ASTs are unlawful for new tenancies. You must use a periodic tenancy from day one.

What happens to my existing fixed-term tenancies? Existing fixed-term tenancies continue until they expire or are renewed, at which point they automatically become periodic tenancies under the new regime.

Is a lodger arrangement still possible? Yes. Where you live in the property and share facilities with the occupier, a licence (excluded occupier) arrangement is still valid. The occupier does not have full AST rights.

Can I use a company let to avoid the new rules? Company lets — where the tenant is a registered company — fall outside the Housing Act 1988. However, if the arrangement is a sham (the individual is the real occupier), a court will treat it as a tenancy.

What grounds can I use to end a tenancy after section 21 is abolished? The reformed section 8 process provides statutory grounds including rent arrears (Ground 8 — mandatory), anti-social behaviour (Ground 14), and landlord selling or moving in (new mandatory grounds introduced by the RRA). Each ground has specific notice periods and evidential requirements.