Contractual (Non-Assured Shorthold) Tenancy Agreements

A Contractual Tenancy is a residential tenancy that falls outside the assured tenancy regime under the Housing Act 1988. It arises where the statutory conditions for an assured tenancy set out in Section 1 of the Housing Act 1988 are not satisfied. In these cases, the tenancy is governed primarily by contract and common law, rather than statutory security of tenure provisions that apply to assured tenancies.

Excluded Tenancies Under The Housing Act 1988

An assured tenancy can only arise if the conditions set out in Section 1 of the Housing Act 1988 are met. Schedule 1 of the Housing Act 1988 lists tenancies that cannot be assured tenancies, including:

Tenancies where the property is not the tenant's only or principal home
Tenancies with an annual rent exceeding £100,000 per annum
Tenancies with an annual rent of less than £1,000 in Greater London, or £250 per annum elsewhere
Tenancies where there is a resident landlord
Agricultural tenancies and holdings
Tenancies granted to a company or non-natural person. Please refer to our Company Let Tenancy Agreement Templates.

Where a letting falls within one of these exclusions, a Contractual Tenancy Agreement should be used. If you are unsure about whether your tenancy falls within the definition of an excluded assured tenancy you should seek legal advice.

How Is a Contractual Tenancy different to an Assured Tenancy?

Under a contractual tenancy:

The tenant does not benefit from security of tenure under the Housing Act 1988
The rights and obligations of the parties are governed by the terms agreed between the parties in the written agreement

Landlords should be aware that in certain situations, if the conditions for an assured tenancy later become satisfied, the tenancy may automatically become assured. For example, if a property is initially let as a second home but later becomes the tenant's only or principal residence, the tenancy may fall within the Housing Act 1988 regime. For this reason, our templates include tenancy deposit protection provisions, forfeiture clauses, and references to possession grounds under the Housing Act 1988. These provisions help ensure the agreement remains legally robust if circumstances change.

Compliance Requirements for Residential Landlords

Landlords of contractual tenancies must still comply with:

The Protection from Eviction Act 1977
The Landlord and Tenant Act 1985
Deposit protection requirements (where applicable)

Landlords should download the Landlord Compliance Checklist Template to ensure all statutory requirements are met.

What Do the Contractual Tenancy Templates Cover?

These templates apply to England only. If your property is in Wales, you will most likely grant an occupation contract. For further information on occupation contracts and for the model written statements see Renting Homes Wales.

The templates include Furnished and Unfurnished house and flat agreements. Other useful documents are Tenancy Agreement Guarantee and Indemnity for Contractual Tenancy for individual guarantors, and Contractual Tenancy Agreement Guarantee and Indemnity for Corporate Guarantor for corporate guarantors.

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