Informal Tenancy Agreement Template for England and Wales

An Informal Tenancy Agreement is a legally binding document that sets out the terms of a residential tenancy in England and Wales. Although it is described as "informal", the agreement must still comply with all relevant housing legislation and gives essential legal protection to both landlord and tenant. It works as a more accessible alternative to a complex commercial lease while keeping full legal validity under the law of England and Wales. People also search for the same document as an informal lease agreement, an informal rental agreement, or a non tenancy agreement, and this template covers those needs.

What is an informal tenancy agreement?

An informal tenancy agreement is a written contract between a landlord and one or more tenants that records who is renting the property, how much rent is due, when it is paid, how long the tenancy lasts, and the responsibilities of each side. "Informal" refers to the plain, simplified wording rather than any lower legal standing. In most private lettings the agreement takes effect as an Assured Shorthold Tenancy (AST), the most common form of private residential tenancy. If you want a more detailed structure for business premises instead, see our lease agreement templates.

Types of tenancy this covers

Most private lettings fall into one of two common types, and an informal tenancy agreement can be used for either:

• Fixed-term assured tenancy. The tenancy runs for a set period, for example six or twelve months, with a defined start and end date.
• Periodic tenancy. The tenancy rolls on from one rent period to the next (weekly or monthly) with no fixed end date, either from the outset or automatically once a fixed term expires.

Both usually take effect as Assured Shorthold Tenancies. Knowing which type applies matters because it changes the notice periods and the way either party can end the arrangement.

When do you need this document?

You need an Informal Tenancy Agreement when letting or renting residential accommodation in England and Wales. This includes private landlords renting out a house, flat, or single room to individual tenants, and tenants who want clear, written terms for their rental arrangement. The document is used to establish Assured Shorthold Tenancies, and it is especially helpful when you are replacing an existing verbal or handshake arrangement with written terms so both parties understand their rights and obligations from the start of the tenancy. It is also a practical choice for lodger-style lets where a landlord lives in the same property, and for short residential arrangements where a full commercial lease would be excessive.

What should an informal tenancy agreement include?

A useful informal tenancy agreement usually covers the following:

• The names and contact details of the landlord and each tenant.
• The address of the property being let.
• The rent amount, payment frequency, and how rent is paid.
• The deposit amount and the government-approved scheme protecting it.
• The length of the tenancy and any break or renewal terms.
• Repairing and maintenance responsibilities for each party.
• Rules on things like pets, subletting, and use of the property.
• Notice periods for ending the tenancy on either side.

A worked example

Say a landlord lets a two-bedroom flat in Leeds to two tenants at £1,200 per month on a twelve-month fixed term starting 1 March 2026. The agreement would name both tenants, state the £1,200 rent paid monthly in advance, record a £1,384 deposit (capped at five weeks' rent under the Tenant Fees Act 2019) held in a government-approved scheme, set out the repairing duties, and confirm that after the fixed term the tenancy continues as a periodic tenancy unless either side gives notice. When the twelve months end, if neither party acts, the arrangement rolls into a monthly periodic tenancy on the same terms.

Key legal considerations

Several legal elements should be addressed to keep the agreement compliant and protective. The deposit clause must specify the protection scheme used, as required by the Housing Act 2004, with landlords facing penalties of up to three times the deposit amount for non-compliance. Rent provisions should state the amount, payment frequency, and any permitted increases, while following Tenant Fees Act 2019 restrictions on prohibited charges. The agreement should include the landlord's repairing obligations under the Landlord and Tenant Act 1985, covering structural repairs and keeping installations for water, gas, and electricity in working order. Notice periods for ending the tenancy must comply with the Section 21 requirements under the Deregulation Act 2015, including proper notice timing and the mandatory provision of prescribed information. Rental income is taxable, so landlords should keep clear records of rent received to report it to HMRC.

Is an informal tenancy agreement legally binding?

Yes. A written informal tenancy agreement is as legally binding as a longer, more formal one, provided both parties agree to its terms and it meets the statutory requirements that apply to residential lettings. A purely verbal arrangement can also be binding, but it is far harder to rely on because the terms are not recorded. Putting the terms in writing gives both landlord and tenant clear evidence of what was agreed, which helps avoid confusion over rent, deposits, and responsibilities later in the tenancy.

Legal requirements in England and Wales

The law of England and Wales imposes specific statutory requirements that your tenancy agreement must reflect. Under the Housing Act 1988, most residential tenancies automatically become Assured Shorthold Tenancies unless stated otherwise, so notice procedures and possession rules apply. The Energy Performance of Buildings Regulations 2012 require landlords to provide an Energy Performance Certificate, while the Gas Safety Regulations 1998 require annual gas safety checks and certificates. Deposit protection under the Housing Act 2004 requires landlords to protect deposits in a government-approved scheme within 30 days and to give prescribed information to tenants. The Tenant Fees Act 2019 limits permitted charges to rent, deposits, holding deposits, and specific permitted payments, with significant penalties for breaches. The Housing Health and Safety Rating System (HHSRS) under the Housing Act 2004 also requires landlords to keep properties free from serious hazards that could affect tenant health and safety. Requirements can change over time and some rules vary by local authority, so check your council's guidance and confirm the current position before you let. Rules in Scotland and Northern Ireland differ, so this template is drafted for England and Wales only.

How do you create and use the agreement?

Start by filling in the property, party, rent, deposit, and term details, then check that the notice, deposit protection, and safety-certificate clauses match your circumstances. Both the landlord and each tenant should read the terms, agree them, and sign before the tenancy starts. Keep a signed copy for each party and store the deposit-protection and prescribed-information records alongside it. If you need related documents, our tenancy agreement templates cover further residential letting scenarios.