AST rent threshold to rise to £100k pa

The threshold for Assured Shorthold Tenancies will rise to £100,000 on October 1. According to the National Landlords Association this morning, the rise will be made retrospective on existing tenancies, almost certainly back to April 6.

The rise, from £25,000, will mean that thousands of contractual tenancies will now come under the AST umbrella, and many more tenants' deposits will have to be protected by one of the three Government-approved tenancy deposit schemes. Already, these are under considerable pressure.

Speaking to EAT, Simon Gordon, head of communications at the NLA, said: “The AST increase was broadly welcomed as an attempt to offer the same consumer protection to almost all tenants.

"However, it seems that a quirk of the process means the change will be retrospective and apply to all existing tenancies with rents between £25k and £100k. Although we’re still piecing together the facts, it seems that landlords not protecting deposits by October 1, 2010 will be in breach.

"We are told courts are being forewarned.”