Tenancy agreement
A tenancy agreement is the contract between a landlord and a tenant that grants the tenant the right to occupy a property as their home in exchange for rent, and sets out what each party must and must not do during the tenancy. It is the agreement through which the landlord transfers exclusive possession to the tenant, creating the legal relationship from which all other rights and obligations flow. Since 1 May 2026, every new private tenancy agreement in England takes effect as an assured periodic tenancy under the Renters' Rights Act 2025.
What a tenancy agreement establishes
Beyond recording the terms of the letting, a tenancy agreement creates legal positions that exist independently of what the document says. The tenant acquires the right to quiet enjoyment of the property. The landlord acquires the right to receive rent and to recover possession through the correct legal process. Both parties are bound by their statutory obligations regardless of whether the agreement mentions them: the landlord's repairing duties under Section 11 of the Landlord and Tenant Act 1985 and the tenant's duty to use the property in a tenant-like manner. The landlord's right to receive rent is itself conditional on giving the tenant an address for service under Section 48 of the Landlord and Tenant Act 1987: until that is done in writing, the rent is not legally due.
A tenancy agreement cannot lawfully override any of these statutory rights. A clause that attempts to remove quiet enjoyment, waive repairing obligations, impose a prohibited payment under the Tenant Fees Act 2019, or restrict the tenant's access to the courts is void, and a tenant presented with such a clause is not bound by it.
The position from 1 May 2026
The Renters' Rights Act 2025 changed the structure of private tenancy agreements in England from 1 May 2026. Fixed-term assured shorthold tenancies are abolished and every new private tenancy is an assured periodic tenancy with no set end date, so an agreement cannot include a fixed termination date, a break clause, or any provision that ends the tenancy automatically. The tenant can leave at any time on two months' written notice. The landlord can only end the tenancy by citing statutory grounds in a Section 8 notice and, if necessary, obtaining a court possession order. Rent can only rise once every 12 months through a Section 13 notice on Form 4A with two months' notice, and no clause referencing an index or landlord discretion overrides that process. The agreement also cannot require more than one month's rent in advance or include rental bidding provisions.
The landlord must give every tenant written information about the key terms before the tenancy is signed or agreed, and gov.uk guidance confirms a failure to do so carries a fine of up to £7,000. For what the written document itself must contain, see the tenancy agreement form entry. Once agreed, the terms can only be changed with the consent of both parties.
What happens without a written agreement
A tenancy does not depend on paperwork to exist. Where a tenant takes occupation and pays rent, a tenancy arises by operation of law under Section 54(2) of the Law of Property Act 1925, and every statutory protection applies to it: repairing obligations, deposit rules, and the Section 8 possession process. What the landlord loses without a written agreement is evidence. The agreed rent, the payment date, and any deposit deduction rights become matters of assertion rather than record, and deposit adjudicators routinely refuse deductions that no signed agreement authorises. From working with self-managing landlords across the UK, the verbal lettings that cause the most expensive disputes are almost always informal arrangements with family or friends, precisely the cases where nobody thought a written agreement was needed.
Tenancies outside the assured regime
Not every residential letting is an assured tenancy governed by these rules. Lodgers sharing the landlord's own home are excluded occupiers, company lets fall outside the regime because the tenant is not an individual, and tenancies with annual rent above £100,000, genuine holiday lets, and most purpose-built student accommodation are also excluded. These lettings run on their contractual terms and the common law instead. Wales has its own system of occupation contracts under the Renting Homes (Wales) Act 2016.
What the agreement should cover
Beyond the statutory content, a well-drafted agreement addresses permitted use of the property, smoking and subletting, responsibility for gardens and external areas, furniture and appliances, and access for inspections and repairs. Terms in this category are contractual rather than statutory and are enforceable provided they do not conflict with the tenant's statutory rights. In our experience supporting landlords through the Renters' Rights Act transition, the clauses that now cause the most confusion are inherited ones: pre-2026 agreements carrying fixed terms, rent review mechanisms, or blanket pet bans that are simply void, even though they remain printed on the page. The agreement should be signed by all named parties before the tenancy begins and a copy given to every tenant. August's document management feature stores every tenancy agreement and associated document, linked to the correct property and tenancy record. Landlords setting up or reviewing agreements from May 2026 should read the August tenancy agreement guide.
Frequently asked questions
What is a tenancy agreement?
A tenancy agreement is the contract between a landlord and tenant that grants the tenant the right to occupy the property as their home in exchange for rent, and sets out what each party must and must not do. From 1 May 2026, every new private tenancy agreement in England takes effect as an open-ended assured periodic tenancy; fixed terms are abolished.
Does a tenancy agreement have to be in writing?
A tenancy can still arise verbally, but from 1 May 2026 the landlord must give every tenant a written statement of the key terms before the tenancy is signed or agreed, with a fine of up to £7,000 for failing to do so. In practice this means every new tenancy has a written component, and a full written agreement remains the clearest evidence of what was agreed.
Can a tenancy agreement include a fixed end date?
No. New private tenancies in England from 1 May 2026 are assured periodic tenancies with no fixed end date. Any clause purporting to set an end date or create a break clause is void, regardless of whether the tenant signed it.
What terms in a tenancy agreement are void?
Any clause that conflicts with the tenant's statutory rights, including clauses that exclude the landlord's Section 11 repairing obligations, restrict access to the courts, impose a prohibited payment under the Tenant Fees Act 2019, discriminate against tenants with children or on benefits, allow the landlord to end the tenancy without a court order, require more than one month's rent in advance, or increase rent other than through the Section 13 process.
