Delay to Increase in Assured Shorthold Threshold
Published May 2010
The proposed increase in the rent threshold for a tenancy to qualify as an Assured Shorthold Tenancy has been delayed until October, the Ministry of Justice has said.
At present, to qualify as an Assured Shorthold Tenancy, the rent must be less than £25,000 per year. Such arrangements give certain protection to tenants, including that the contract cannot be terminated by the landlord within the first six months, and after that two months’ notice must be given in order to do so.
The threshold was due to rise to £100,000 this month, but the change will now come into force on 1 October. The change will be retrospective, so will apply to all existing agreements from 1 October, as well as those entered into after that date.
In addition, since April 2007, deposits taken under an Assured Shorthold Tenancy must be protected by a tenancy deposit protection scheme – a change intended to ensure tenants’ deposits are not withheld unreasonably by landlords.
Landlords of properties where the annual rent is more than £25,000 but less than £100,000 will need to take steps to register the deposits with a deposit protection scheme before 1 October, or face the prospect of potential claims from their tenants.
