AST rent threshold to increase to £100K but when?

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    AST rent threshold to increase to £100K but when?

    Anyone know whether it will happen on 6 April 2010, or 1 October 2010, or whether it might not happen at all if Labour lose the election?

    Conflicting information here and here.

    (Here's hoping to get caught out by it, whenever it happens - would love to break the £25K pa barrier. Also look forward to lots of new deposit protection problems, as I'm sure they won't have thought that through...)

    #2
    My understanding is that on 1 October 2010 the AST threshold will rise to £100,000; this will apply retrospectively (i.e. to existing tenancies).

    Any tenancy with an annual rate of rent: £25,000 to £100,000, on 1 October 2010 will become an AST overnight.

    This means that all of the rights and responsibilities associated with the Housing Act 1988 will be extended to these higher rent properties.

    Main consequences from this change in legislation:
    * All landlords of these tenancies who have taken a deposit, will need to ensure that it is protected; and
    * The eviction procedure will be as laid out in the Housing Act 1988.
    The information in my posts is provided 'as is'. This is not intended to be legal advice. Legal or other professional advice should be sought before acting or relying on this information or any part of it. I will not be held responsible for loss or damage arising from errors in the information or the way in which a person uses the information on this . For more information on your query use the '' link at the top of this page. Agreements, Forms & Notices can be found .

    Comment


      #3
      Maybe not. When the original 1988 Act wording (re RV) was changed in 1990 to a rent-based amount, by SI, the change was not retroactive.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

      Comment


        #4
        Originally posted by westminster View Post
        Conflicting information here and here.
        The links actually concur:

        Painsmith Blog: Housing Act Threshold Increase
        "UPDATE: We are now given to understand that the necessary statutory instruments have yet to be finalised to bring the threshold change into force. However, the Government is intending to have these in place in time for 6 April with the intention that the actual changeover date will be 1 October."

        Residential landlord:
        "The Assured Shorthold Tenancy (AST) threshold will rise to £100,000 on 1 October 2010 and this rise will apply retrospectively according to information given to the National Landlords Association (NLA) by the government."

        This also concurs with:
        (1)Tessa Shepperson's Landlordlaw Blog:
        "However the surprising piece of news is that the legislation will be retrospective So all tenancies where the rent is between £25,000 and £100,000 on 1 October 2010, on the day the changes are scheduled to come force, will change automatically into ASTs at that time."

        and

        (2) NLA: AST threshold will increase to £100k in October...and it will be retrospective:
        "The Government has informed the National Landlords Association that on 1 October 2010 the Assured Shorthold Tenancy (AST) threshold will rise to £100,000. The rise will apply retrospectively."
        The information in my posts is provided 'as is'. This is not intended to be legal advice. Legal or other professional advice should be sought before acting or relying on this information or any part of it. I will not be held responsible for loss or damage arising from errors in the information or the way in which a person uses the information on this . For more information on your query use the '' link at the top of this page. Agreements, Forms & Notices can be found .

        Comment


          #5
          Originally posted by tom999 View Post
          The links actually concur:

          Painsmith Blog: Housing Act Threshold Increase
          "UPDATE: We are now given to understand that the necessary statutory instruments have yet to be finalised to bring the threshold change into force. However, the Government is intending to have these in place in time for 6 April with the intention that the actual changeover date will be 1 October."
          Ah, they must have posted that update today.

          Comment


            #6
            However, all that may change w.e.f. 6 May.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment


              #7
              Update

              Here's the official amendment
              http://opsi.gov.uk/si/si2010/uksi_20100908_en_1

              It comes into force 1st October 2010, in England only, and also applies to tenancies already in place at that time, i.e. tenancies where rent is £25-100K on 30th September will be liable for deposit protection (etc) the day after.

              And here's a blog commentary on it.
              http://blog.painsmith.co.uk/2010/03/...der-published/

              Comment


                #8
                Originally posted by westminster View Post
                also applies to tenancies already in place at that time, i.e. tenancies where rent is £25-100K on 30th September will be liable for deposit protection (etc) the day after.
                If deposit was paid before 1 October 2010 but the letting thereupon becomes an AST, how can deposit protection apply thereafter?
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                  #9
                  Originally posted by jeffrey View Post
                  If deposit was paid before 1 October 2010 but the letting thereupon becomes an AST, how can deposit protection apply thereafter?
                  It says, in the explanatory memorandum (link in the first link I posted):

                  4.6 The Housing Act 2004 made provision for a tenancy deposit scheme for the purposes of safeguarding tenancy deposits. Landlords of all assured shorthold tenancies entered into on or after 6 April 2007 had to protect their tenants’ deposits in a recognised scheme. We consider that those common law tenancies entered into on or after this date, and which will become assured shorthold tenancies when the rental threshold is increased, must protect their tenants’ deposits in a recognised scheme. Failure to comply with this requirement means a landlord will not be able to use notice only possession to recover his or her property.
                  There's also this somewhat confusing paragraph:

                  4.4 The new rental threshold will affect the existing rights of those landlords and tenants who have already taken out tenancy agreements. We consider the proposed increase in rental threshold is prospective rather than retrospective because it will not affect the rights of tenants and landlords prior to its commencement.
                  As the PainSmith article points out, this may indeed create difficulties in terms of potentially exposing LLs to non-compliance claims.

                  Comment


                    #10
                    Originally posted by mike999peters
                    It's not before time that they put up the threshold. Too many landlords simply don't want to give tenants their deposit back at all.

                    I had an issue with my old landlord and after about 6 months of getting nowhere, I used a company called Recover My Deposit to take it on fo me.

                    I got the total amount back, no fees to pay and it too a matter of weeks.

                    MP
                    I bet that:
                    a. you; and
                    b. a company called Recover My Deposit
                    are one and the same!
                    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                    4. *- Contact info: click on my name (blue-highlight link).

                    Comment


                      #11
                      Just google his logon name - all reference the same company.
                      Liability statement. My liability to you is not to exceed the amount you are paying for my recommendations or advice.

                      I see a bright new future, where chickens can cross the road with no fear of having their motives questioned

                      Comment


                        #12
                        Originally posted by jeffrey View Post
                        I bet that:
                        a. you; and
                        b. a company called Recover My Deposit
                        are one and the same!
                        I hope he recovers deposits better than he can spell.

                        Comment


                          #13
                          AST Threshold Issues Non-Housing Act Tenancies

                          A Non-Housing Act tenancy that came into being between 15 January 1989 and 27 February 1997 that commanded an annual rent of between £25,000 and £100,000 is likely to become an Assured Tenancy from 1 October 2010 by default unless the landlord takes steps to do one of the following:
                          1. Operation of a break clause to evict the tenant.
                          2. Serve a NTQ
                          3. Obtain a Deed of Surrender from the tenant prior to signing an AST.


                          The deposit will of course have to be protected too.

                          No doubt landlords will wish to consult their legal adviser over such matters, and I'm sure extreme care will be the order of the day. Doing nothing will probably mean a tenant has considerable security of tenure and the landlord limited powers (grounds) for repossession. I wonder how many might fit into this category?

                          There would have been no requirement to serve a S.20 Notice at the time as it was superflous to the situation.
                          The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

                          Comment


                            #14
                            Best to add this to http://www.landlordzone.co.uk/forums...ight=%C2%A3100
                            and then post to ask that LZ rename the thread.
                            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                            4. *- Contact info: click on my name (blue-highlight link).

                            Comment


                              #15
                              Originally posted by jeffrey View Post
                              Best to add this to http://www.landlordzone.co.uk/forums...ight=%C2%A3100
                              and then post to ask that LZ rename the thread.
                              Blimey, he'll be working them subjunctives into every post, now
                              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                              Comment

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