As most of you are probably aware recent legislation change means that the annual rent threshold for common ‘assured shorthold tenancies’ is now raised from £25,000 to £100,000.
This in itself is newsworthy but it is the fact that the legislation back dates the legislation that seems set to catch landlords out if they are not on their toes.
The bottom line is that the change drags many more ‘high end’ properties under the tenancy deposit scheme. Not just those that are rented after the Oct 1 change to the law but also those that were rented between the dates 6 April 2007 and The Oct 1st change that occurred this year.
Therefore those of us who have been happily operating properties of up to £100 000 without securing the tenant deposit within the scheme now fall foul of the law. It is imperative that all landlords remedy the situation as soon as they can.
In the meantime prominent landlord groups are arguing that the retrospective legislation is a legal minefield. They are calling very strongly for the law to apply only from the date it was officially introduced.
