Furnished Assured Shorthold Tenancy Agreement (AST)

Overview

An assured shorthold tenancy (AST) is the standard form of residential letting in England under the Housing Act 1988 (as amended, notably by the Housing Act 1996 and the Deregulation Act 2015). It applies where a landlord lets self-contained accommodation to an individual tenant as their only or principal home, the landlord does not occupy the property, and the rent is within the statutory limits. This template covers a FURNISHED letting — the property is let with sufficient furniture, fittings and equipment for normal residential occupation, typically listed in a separate inventory. Important context — England does not have a separate legal regime for furnished lettings: unlike some other jurisdictions, England does not distinguish 'furnished' and 'unfurnished' as separate statutory tenancy types with different minimum terms, notice periods or deposit caps. Both are ASTs under the same Housing Act 1988 framework. Furnishing is a commercial and practical distinction — it affects rent level, target tenant, and what must be listed on the inventory and check-in/check-out reports — but it does not change the legal rules governing notice, deposit protection, or grounds for possession. Any drafting or marketing that implies otherwise is misleading and should be avoided. Deposit cap and protection: under the Tenant Fees Act 2019, the deposit is capped at five weeks' rent where the annual rent is below £50,000 (six weeks' rent above that threshold). The deposit must be protected in a government-approved tenancy deposit scheme (TDS, DPS or mydeposits) within 30 days of receipt, and the prescribed information served on the tenant within the same period. Failure to protect the deposit correctly can bar the landlord from serving a valid section 21 notice and can expose the landlord to a penalty of one to three times the deposit. Prescribed information before a valid section 21 notice: since the Deregulation Act 2015, a landlord cannot serve a valid 'no fault' section 21 notice unless, at the start of the tenancy (or before service of the notice), the tenant was given a copy of the current Energy Performance Certificate, a valid Gas Safety Certificate (where gas appliances are present), and the government's 'How to Rent' guide. These are not optional formalities — omitting any of them can invalidate a section 21 notice served months or years later. Ending the tenancy: a landlord can seek possession either under section 21 (no-fault, available after the fixed term or during a periodic tenancy, subject to notice and compliance requirements above) or section 8 (grounds-based, e.g. rent arrears, requiring proof of one or more statutory grounds). Note that housing law in this area is under active reform — the Renters' Rights Bill, progressing through Parliament, proposes to abolish section 21 'no fault' evictions and assured shorthold tenancies as a category, moving to a single system of periodic tenancies. Landlords and tenants should check the current state of the law before relying on this template, as the underlying framework may change materially during the life of a tenancy. Retaliatory eviction protection: the Deregulation Act 2015 also prevents a landlord from serving a valid section 21 notice within six months of a local authority improvement notice or emergency works notice relating to the property, where the tenant had complained about disrepair. When to use: for a new residential letting of furnished self-contained accommodation to an individual tenant, as their only or main home, at market rent, where the landlord does not live in the property. Common pitfalls: missing the deposit protection deadline; failing to serve the prescribed EPC/gas certificate/How to Rent documents before relying on section 21; and setting a deposit above the statutory cap. This template is a drafting aid only and must be adapted to the specific letting and reviewed against the current law, given the pace of reform in this area.

Information to customize

• Landlord's full name

• Landlord's address for service

• Tenant's full name(s)

• Property address

• Property description (rooms, furnishings summary)

• Tenancy start date

• Fixed term length

  Commonly 6 or 12 months.

• Monthly rent

• Rent due date each period

• Deposit amount

  Capped at 5 weeks' rent (annual rent under £50,000) or 6 weeks' rent (above).

• Tenancy deposit protection scheme used

  TDS, DPS or mydeposits.

• Are there gas appliances at the property?

• Date of this agreement

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Frequently asked questions

Does furnished vs unfurnished change the legal rules for an AST?

No. England does not have separate statutory tenancy regimes for furnished and unfurnished lettings — both are assured shorthold tenancies under the Housing Act 1988. Furnishing is a practical and commercial distinction (what is listed on the inventory), not a separate legal category with different notice periods or deposit rules.

What is the maximum deposit for a furnished AST?

Five weeks' rent where the annual rent is under £50,000, or six weeks' rent where it is at or above that threshold, under the Tenant Fees Act 2019.

What happens if the deposit is not protected in time?

The landlord may be barred from serving a valid section 21 'no fault' notice, and can be ordered to pay the tenant a penalty of between one and three times the deposit amount.

What documents must be served before a section 21 notice is valid?

The current Energy Performance Certificate, a valid Gas Safety Certificate (where gas appliances are present), and the government's 'How to Rent' guide, under the Deregulation Act 2015. These should be provided at or before the start of the tenancy.

Is section 21 'no fault' eviction being abolished?

The Renters' Rights Bill, progressing through Parliament, proposes to abolish section 21 notices and the assured shorthold tenancy category itself, moving to a single system of periodic tenancies. Landlords and tenants should check the current state of the law, as this area is changing.

Must an inventory be prepared for a furnished letting?

It is not a strict legal requirement, but it is strongly advisable — without an agreed inventory and schedule of condition, it is very difficult for a landlord to make deductions from the deposit for damage to furniture or fittings at the end of the tenancy.

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