Increase in AST rent threshold

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22 July 2010

Under current housing law, a tenancy cannot be assured (which includes an assured shorthold tenancy) if the rent exceeds £25,000 a year. A residential tenancy with an annual rent exceeding £25,000 is a 'common law' tenancy, which enjoys no security of tenure or restriction on rental increases.

This £25,000 threshold will be increased to £100,000 from 1 October 2010. This takes into account inflation and raises it to a high enough limit to ensure further statutory increases will not be required for many years.

For further information, please contact Tom Hewitt on +44(0) 117 902 2717 or by e-mail on tom.hewitt@burges-salmon.com

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