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Contractual Tenancy Agreement UK: Non-Assured Lets

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Part ofUK Property Law Guide

Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
Not every rental arrangement in England and Wales falls under the familiar Assured Shorthold Tenancy regime. Some lettings sit outside the Housing Act 1988 protections entirely, and these are usually documented through what landlords and solicitors call a contractual tenancy, sometimes described as a common law or non-assured tenancy. The rules governing these arrangements come from the written contract itself and general contract law, rather than the statutory framework that shapes most residential lets. This guide walks through the circumstances where a contractual tenancy is the right fit, what the agreement typically covers, and why the distinction matters for both landlord and tenant. If you are weighing up which type of agreement suits your letting, or you have been handed one and want to understand what you are signing, the points below should give you a grounded starting place.

What this document is

A contractual tenancy is a letting arrangement that does not qualify as an Assured Shorthold Tenancy under the Housing Act 1988. Because the statutory protections for ASTs do not apply, the rights and obligations of each party are drawn almost entirely from the wording of the contract and from general principles of contract and property law.

The practical consequence is significant. Tenants under a contractual tenancy do not automatically benefit from the same security of tenure as AST tenants. The statutory notice procedures that landlords must follow for ASTs, such as the section 21 process, generally do not apply in the same way.

Instead, the parties must look to the agreement itself to determine how the tenancy can be ended, what notice is required, and what happens at the end of the fixed term. For landlords, this flexibility can be useful, but it also shifts more weight onto the drafting of the document.

A poorly worded contractual tenancy can leave gaps that are difficult to resolve later. For tenants, it means reading the agreement with real care, because the contract is effectively the whole rulebook.

How to use this document

  1. Confirm the tenancy falls outside the AST regime. Before using a contractual tenancy, check that the letting genuinely does not qualify as an AST. Common reasons include very high rent, the tenant being a company, a resident landlord situation, or the property not being the tenant's only or main home.
  2. Set out the term and rent clearly. The agreement should state how long the tenancy runs, when it starts, the rent figure, the payment frequency, and the method of payment. Any review mechanism or break clause needs to be drafted in plain terms so both sides know where they stand.
  3. Define each party's obligations. Cover the landlord's duties around repair and quiet enjoyment, and the tenant's duties to pay rent, look after the property, and comply with any use restrictions. Include provisions on insurance, utilities, and council tax where relevant.
  4. Address ending the tenancy. Because statutory notice rules for ASTs do not apply in the usual way, the contract should spell out how either party can bring the tenancy to an end, including notice periods, grounds for forfeiture, and what happens on expiry of the fixed term.
  5. Sign, date, and keep records. Both parties should sign the agreement and each keep a copy. Record the inventory, any deposit arrangements, and meter readings at the start of the tenancy. Good documentation at the outset saves a great deal of difficulty if a dispute arises later.

Common questions

If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Common questions

Q How does a contractual tenancy differ from an Assured Shorthold Tenancy?
An AST is governed by the Housing Act 1988 and carries statutory protections around deposit handling, notice procedures, and security of tenure. A contractual tenancy sits outside that framework, so the parties' rights flow from the written contract and general law. This usually means less built-in protection for the tenant and more flexibility, but also more responsibility, for the landlord in how the agreement is drafted.
Q When is a contractual tenancy appropriate?
Typical situations include lettings where the annual rent is very high and takes the tenancy outside AST rules, lets to companies rather than individuals, arrangements where the landlord lives in the same property as the tenant, and lets where the property is not the tenant's only or main home, such as a second-home rental or a corporate let for staff accommodation.
Q Do deposit protection rules apply to contractual tenancies?
The statutory tenancy deposit protection scheme applies to ASTs. Lettings that are not ASTs, such as company lets or genuinely high-rent tenancies, generally fall outside those rules. That said, it is sensible to deal with any deposit carefully and record its treatment in the contract. If you are unsure whether deposit protection applies to your specific letting, it is worth checking before you take any money.
Q Can a landlord use a section 21 notice with a contractual tenancy?
Section 21 is a statutory route linked to ASTs under the Housing Act 1988. It does not apply to tenancies that sit outside that regime. For a contractual tenancy, the landlord must rely on the termination provisions in the agreement itself, along with any relevant common law or contractual notice requirements, rather than the section 21 procedure.
Q What happens at the end of the fixed term?
This depends on the wording of the agreement. Some contractual tenancies simply end on the final day of the term. Others roll on as a periodic tenancy if the tenant stays and the landlord continues to accept rent. The contract should ideally address both possibilities so there is no ambiguity about whether the tenancy has ended or continued on a new basis.
Q Does a contractual tenant still have a right to quiet enjoyment?
Yes. The covenant of quiet enjoyment is a core feature of any tenancy and applies whether the letting is an AST or a contractual tenancy. The landlord must not interfere with the tenant's lawful use of the property during the term. Harassment or unlawful eviction remains unlawful under the Protection from Eviction Act 1977, regardless of the tenancy type.
Q Can a company be a tenant under a contractual tenancy?
Yes, and this is one of the most common uses of a contractual tenancy. A company cannot occupy a property as its only or main home in the way an individual can, so a letting to a company falls outside the AST regime. These arrangements are usually documented as company lets using a contractual tenancy tailored to the situation.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.