Private tenancy

A private tenancy is a residential letting arrangement in which an individual or company landlord rents a property to a tenant as their home, outside the social housing sector. The landlord is not a council, not a housing association, and not a registered provider of social housing. The tenant pays rent in exchange for the right to occupy the property as their principal or only residence, under a tenancy agreement governed by the Housing Act 1988 (as amended). Private tenancies fall within the Private Rented Sector (PRS), which in England comprises approximately 4.7 million households, the second-largest housing tenure after owner-occupation, according to the English Housing Survey 2023/24.

The legal form: assured periodic tenancy

In legal terms, every private tenancy in England granted on or after 1 May 2026 is an assured periodic tenancy, an open-ended, rolling agreement under the Housing Act 1988 as amended by the Renters' Rights Act 2025. Fixed-term tenancies are abolished for new private lets. All existing assured shorthold tenancies converted automatically to assured periodic tenancies on 1 May 2026 without any action required from landlord or tenant.

Before 1 May 2026, most private tenancies were assured shorthold tenancies (ASTs), which gave landlords a no-fault route to possession via Section 21 notice. That route no longer exists. Possession of a private tenancy now requires the landlord to establish one or more of the statutory grounds under Section 8 of the Housing Act 1988.

The assured periodic tenancy does not have a minimum or maximum duration. The tenant may leave on two months' notice at any time. The landlord may only end the tenancy by establishing a valid possession ground, serving the prescribed Section 8 notice, and obtaining a court order.

A private tenancy applies to most residential lettings in England by private individuals and companies. The main exclusions from the assured tenancy framework are properties with an annual rent above £100,000 per year, properties where the landlord lives in the same building (in certain circumstances), student accommodation let directly by educational institutions, and business or holiday lets where the property is not the tenant's only or principal home.

Private tenancy versus social housing

A private tenancy and a social housing tenancy differ in landlord type, rent level, and security framework. A social tenant rents from a council or a registered housing association, pays a rent set by regulated formulae (social rent or affordable rent), and has a secure or assured tenancy governed by different provisions of the Housing Act 1988 and the Housing Act 1985. A private tenant rents at market rent from a private individual or company landlord and, since May 2026, holds an assured periodic tenancy under the Renters' Rights Act framework.

Many housing associations also let market-rent properties within the private sector. These are private tenancies subject to the full Renters' Rights Act regime, not social housing tenancies.

Tenancy versus licence

Not every private residential arrangement is a tenancy. The legal distinction turns on whether the occupier has exclusive possession of the property. Where an occupier pays rent and has exclusive possession of a self-contained property or unit, the arrangement is almost certainly a tenancy regardless of the label on any written agreement. Where the occupier shares living space with the landlord, for example a lodger in the landlord's home, the arrangement is typically a licence to occupy rather than a tenancy.

The distinction matters enormously. Tenants in a private tenancy hold the full protection of the assured periodic tenancy framework: Section 8 possession grounds, two months' notice to leave, and all Renters' Rights Act protections. Licensees and lodgers have significantly fewer statutory rights. The decision between tenancy and licence is determined by the facts of occupation, primarily whether the occupier has exclusive possession, and not by the label on the agreement; see licence to occupy for how this distinction works in practice.

Landlord obligations in a private tenancy

Operating a private tenancy in England triggers a set of statutory obligations that do not apply to commercial lettings or excluded licences. These include providing a written statement of terms at the start of the tenancy (mandatory from 1 May 2026 for all new assured periodic tenancies), protecting any tenancy deposit in a government-approved scheme within 30 days and serving prescribed information on the tenant, providing a valid Gas Safety Record annually, carrying out an Electrical Installation Condition Report at least every five years, providing a current Energy Performance Certificate, conducting Right to Rent checks on all adults over 18 before the tenancy begins, and providing the current How to Rent guide in England.

From working with self-managing landlords across the UK, the compliance obligations for a private tenancy are often underestimated at the outset. Each obligation carries its own penalty for non-compliance, missing an EICR can result in a civil penalty of up to £30,000, and an unprotected deposit prevents a court from making a possession order in many circumstances.

The Renters' Rights Act 2025 adds further requirements for all private assured tenancies: registration on the PRS Database (on a phased timetable from late 2026), membership of the Private Rented Sector Ombudsman scheme, and compliance with the Decent Homes Standard when those provisions come into force.

August is built specifically for private landlords managing residential tenancies in England, the compliance checklist and document storage cover every statutory obligation from Right to Rent through to certificate renewals and deposit protection.

For a practical guide to what every landlord must do from the first day of a new private tenancy, from the written statement of terms through to deposit protection and the How to Rent guide, our tenancy agreement guide covers the current requirements.

Jurisdiction: England, Scotland, and Wales

The private tenancy framework described here applies to England. Scotland operates under a separate regime: the Private Residential Tenancy, governed by the Private Housing (Tenancies) (Scotland) Act 2016, which introduced open-ended periodic tenancies in Scotland from December 2017. Wales has its own residential tenancy framework under the Renting Homes (Wales) Act 2016, which introduced occupation contracts in December 2022. Landlords with properties in more than one UK jurisdiction must understand the relevant legislation for each.

Frequently asked questions

Does a private tenancy need to be in writing?

From 1 May 2026, private landlords in England must provide a written statement of terms to new tenants before the tenancy begins. This is a legal requirement under regulations made under the Renters' Rights Act 2025. For tenancies that existed before 1 May 2026 and converted automatically to assured periodic tenancies, the landlord was required to provide the government's Renters' Rights Act Information Sheet to all named tenants by 31 May 2026. A verbal tenancy agreement creates a legally binding tenancy, but the landlord's failure to provide required written information can result in a civil penalty and may affect the validity of a Section 8 possession claim.

What is the difference between a private tenancy and an excluded occupier arrangement?

An excluded occupier, typically a lodger living in the same property as a resident landlord, does not have an assured tenancy. They have a licence to occupy with significantly reduced statutory protection. The landlord can end the arrangement by giving reasonable notice without obtaining a court order. The full Renters' Rights Act framework, including Section 8 possession procedures and deposit protection, does not apply. Whether an arrangement creates a tenancy or a licence depends on the facts, particularly whether the occupier has exclusive possession of any part of the property.

Can a company be a landlord in a private tenancy?

Yes. A private tenancy may be granted by an individual landlord or by a company, including a special purpose vehicle (SPV) or limited company set up to hold investment property. The statutory obligations are the same regardless of whether the landlord is an individual or a company. However, a tenancy where the tenant is a company rather than an individual does not qualify as an assured tenancy (companies cannot hold assured tenancies) and falls outside the Renters' Rights Act framework.