Increase in AST rent threshold
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 email@example.com