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Is your rent over £25,000 pa - changes coming
tbs624
Posts: 10,816 Forumite
Currently , if the total rent on a property is above £25k per annum then the tenancy cannot be an Assured Shorthold Tenancy, but is a common law tenancy.
On of the downsides to this is that the Tenancy Deposit Regs are only applicable to ASTs. ( There are also differences in the way notice is given)
However, it has been announced that the Govt want to increase the AST threshold to £100,000, as from April 1st 2010. The unusual bit about their intentions is that there is measure of retrospection involved in that all such properties (ie those bringing in above 25k and below 100k in annual rent) would automatically become an AST let with effect from October 2010. LLs of these properties would therefore be obliged to scheme-register their tenants deposits from that date or be liable for court action over their breach.
It's a pity that our lawmakers didn't similarly extend retrospective protection to all those Ts who were already renting under an AST but whose deposits were handed over to their LL before the 6 April 2007 implementation of the deposit regs.
In effect, there will still be a two tier system , with a sizeable number of tenants who have no access to the tenancy deposit schemes' arbitration processes.
Maybe all those Ts who currently have unprotected deposits, because they signed up under an earlier AST and have continued under a periodic agreement, should contact their MPs and the Housing Minister now to draw their attention to this anomaly. http://www.writetothem.com/
See 16 and 17 here
On of the downsides to this is that the Tenancy Deposit Regs are only applicable to ASTs. ( There are also differences in the way notice is given)
However, it has been announced that the Govt want to increase the AST threshold to £100,000, as from April 1st 2010. The unusual bit about their intentions is that there is measure of retrospection involved in that all such properties (ie those bringing in above 25k and below 100k in annual rent) would automatically become an AST let with effect from October 2010. LLs of these properties would therefore be obliged to scheme-register their tenants deposits from that date or be liable for court action over their breach.
It's a pity that our lawmakers didn't similarly extend retrospective protection to all those Ts who were already renting under an AST but whose deposits were handed over to their LL before the 6 April 2007 implementation of the deposit regs.
In effect, there will still be a two tier system , with a sizeable number of tenants who have no access to the tenancy deposit schemes' arbitration processes.
Maybe all those Ts who currently have unprotected deposits, because they signed up under an earlier AST and have continued under a periodic agreement, should contact their MPs and the Housing Minister now to draw their attention to this anomaly. http://www.writetothem.com/
See 16 and 17 here
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Comments
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LLs of these properties would therefore be obliged to scheme-register their tenants deposits from that date or be liable for court action over their breach.
What are the landlords who have used the deposit to fund other ventures going to do?
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Trollfever wrote: »What are the landlords who have used the deposit to fund other ventures going to do?
It wasn't their money to use, so they will have to find it, won't they.My first reply was witty and intellectual but I lost it so you got this one instead
Proud to be a chic shopper
:cool:0 -
I know somebody whose rent is £30k/year. That's just madness isn't it. It's a pokey flat, yes, a pokey 2-bed shoebox. Utter, utter madness. £30k .... I'd kill for a job earning that much, never mind handing it over as rent without even noticing.0
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