Contractual (Non-Assured) 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.  

Non- Assured Tenancies

Under section 1 of the Housing Act 1988, a tenancy is only assured if the tenant is an individual who occupies the property as their only or principal home. 

A letting to a company or other non-natural person therefore cannot be an assured tenancy, nor can a letting to an individual who does not occupy the property as their only or principal home, such as a second home. 

Schedule 1 of the Housing Act 1988 also excludes certain other tenancies from being assured tenancies, including high-value lettings where the annual rent exceeds £100,000 and lettings by resident landlords. 

What This Means In Practice

Where a tenancy falls outside the assured tenancy regime under the Housing Act 1988, a different form of tenancy agreement should be used. These agreements are commonly referred to as Non-Housing Act Tenancies or Contractual Tenancies. 

In practice:

• The statutory security of tenure provisions applying to assured tenancies do not apply;
• The statutory tenancy deposit protection requirements may not apply;
• The Tenant Fees Act 2019 restrictions on prohibited payments generally do not apply; and 
• The landlord must still comply with the Protection from Eviction Act 1977, including a minimum notice period of four weeks. If the occupiers do not leave voluntarily a court order for possession will still be required.

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. 

If you are unsure about whether your tenancy falls within the definition of an excluded assured tenancy you should seek legal advice.  

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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