Contractual tenancy

A contractual tenancy, also called a common law tenancy or non-assured tenancy, is a tenancy governed by the terms of the agreement and the common law rather than by the Housing Act 1988. It arises whenever a letting falls outside the assured tenancy regime, so the strong statutory protections that apply to most private tenancies do not apply, and the parties' rights come mainly from the contract itself.

When a tenancy is a contractual tenancy

The Housing Act 1988 sets out the conditions a residential letting must meet to be an assured tenancy. Where one of them is not met, the tenancy cannot be assured, and it takes effect as a contractual tenancy under common law instead. The most common example is a company let, where the tenant is a business rather than an individual occupying the property as a home. Others include a tenancy where the annual rent exceeds £100,000; a genuine holiday let; a letting by a resident landlord who lives in the same building; and a low-rent or no-rent arrangement. In each case an assured tenancy simply cannot arise, so what exists is a contractual tenancy.

Contractual tenancy versus assured tenancy

The difference is the source and strength of the tenant's protection. Where the Housing Act conditions are met, the tenancy is an assured periodic tenancy, the standard tenancy type since the Renters' Rights Act, and the tenant has substantial security: the landlord can only end it on a statutory ground under a Section 8 notice and a court possession order, Section 21 is abolished, and rent increases must follow the Section 13 procedure. A contractual tenancy has none of that statutory scaffolding. The rights of both parties come from the agreement and the common law, which makes the arrangement more flexible for the landlord and considerably less secure for the tenant. From working with self-managing landlords across the UK, this is the point most often misunderstood: a contractual tenancy is not a lesser version of an assured tenancy, it is a different legal animal that the assured protections were never written to cover.

Does the Renters' Rights Act apply?

No. The Renters' Rights Act 2025 amended the assured tenancy regime under the Housing Act 1988, so its protections, the abolition of Section 21, the Section 8 grounds, the rent-increase rules and the periodic-by-default structure, apply to assured tenancies. A contractual tenancy sits outside that regime by definition, so those changes do not reach it. This is why company lets and other common-law tenancies continue much as before, while the assured sector has changed significantly.

How a contractual tenancy ends

A contractual tenancy ends according to its own terms and the common law. A periodic contractual tenancy is ended by a notice to quit, which for a dwelling must be in writing and at least four weeks long under section 5 of the Protection from Eviction Act 1977. That Act also gives most contractual tenants basic protection, meaning the landlord generally still needs a court order to evict, even though the tenant has no assured-tenancy security. The exception is an excluded occupier, such as someone sharing accommodation with a resident landlord, who can be asked to leave on reasonable notice without a court order.

Contractual periodic and statutory periodic tenancies

The word "contractual" appears in a second, narrower context that is worth separating out. A contractual periodic tenancy is one that continues on a rolling basis by express agreement, as distinct from a statutory periodic tenancy, which historically arose automatically when a fixed term ended. This distinction has become largely historical for assured tenancies, because the Renters' Rights Act abolished fixed terms on 1 May 2026, so assured tenancies are now periodic from the outset rather than converting at the end of a term. Because a contractual tenancy takes its terms from the agreement rather than from statute, the drafting of that agreement carries more weight, so keeping it on file matters more than with a standard assured tenancy.

Frequently asked questions

Is a contractual tenancy the same as a common law tenancy?

Yes. The terms are used interchangeably, along with "non-assured tenancy". All describe a tenancy governed by the agreement and the common law rather than by the Housing Act 1988 assured regime.

Is a company let a contractual tenancy?

Yes. An assured tenancy can only be held by an individual occupying the property as their only or principal home, so a letting to a company is always a contractual tenancy, governed by common law and the terms of the agreement.

Does a contractual tenant have to protect the deposit?

There is no statutory deposit-protection requirement for a genuine common-law tenancy, because the tenancy-deposit rules attach to assured shorthold tenancies. Many landlords protect the deposit anyway as good practice, but check the specific arrangement, as getting the tenancy type wrong carries real consequences.

How much notice ends a contractual tenancy?

For a periodic contractual tenancy of a dwelling, a written notice to quit of at least four weeks is required under the Protection from Eviction Act 1977, and a court order is usually still needed to evict unless the tenant is an excluded occupier.