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Under the HousingAct1996 and subsequent legislation, most domestic recurring leases, whether `short' or not, will be assumed to be assured shorthold tenancies, unless the agreement makes clear an intention to the contrary. It is, of course, open to the landlord and the tenant to agree a lease on terms that are more favourable to the tenant; the significance of the assured shorthold is that it will apply in the absence of such agreement, and will therefore govern most leases agreed informally. Assured shorthold does not apply to, for example, tenants sharing a house with the owner; these `tenants' remain licencees. In practice, the differences between the rights of a licencee and a shorthold tenant are not that great.
The `assured' in `assured shorthold' refers to an assurance given to the landlord, not the tenant. The assurance is that he will be able to recover possession and boot the tenant out. An assured shorthold is a long way indeed from the ProtectedTenancy of the 1970s. Under a protected tenancy, the tenant could occupy the premises more or less indefinitely, at a rent that could not be increased; under an assured shorthold, the landlord is very much at an advantage.
Under an assured shorthold tenancy, the landlord can recover possession from the tenant in the following circumstances.
The tenant, on the other hand, has no right to bring the tenancy to an end within the initial term, unless the contract specifically allows for this. After the term ends, he must give two months notice.
Because the assured shorthold is a lease, albeit an emasculated one, it is binding on a person who purchases the freehold from the landlord. However, the new owner would be entitled to terminate the tenancy on the same terms as the previous owner, so this isn't much comfort for the tenant.
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