If you are a residential landlord you would be wise to check your position following a change in law that came into play on 1 October and has seen the maximum rent level for assured short hold tenancies quadruple to £100,000.
Prior to this change in the law only tenants with annual rents of up to £25,000 had security of tenure. The new law applies to existing tenancies as well as new ones, giving some tenants security of tenure for the first time.
It means that tenants will be granted assured short hold tenancy security if their agreement dates from March 1997, in which case the landlords can recover possession once the fixed period of the tenancy has expired providing they give at least two months notice.
However, a tenancy which was granted before 1 March 1997 at a rent between £25,000 and £100,000 will now become an assured tenancy, which may hit some landlords as they can only recover possession if they can establish that certain grounds apply.
The changes, which apply only in England and any new residential tenancy of premises in England granted to an individual at a rent of up to £99,999, will be assured short hold tenancy by default.
The £100,000 threshold highlights how keen the government is to bring all residential tenancies under the umbrella of security of tenure. The retrospective effect will be detrimental for landlords who have been letting their property to the same tenant for many years.
Any new tenancies and tenancy renewals will be subject to the statutory deposit protection scheme. Whilst this only applies to deposits paid after 1 October 2010, or on tenancies renewed after that date, the landlords are being recommended to adopt the scheme as good practice for all deposits held.
If you would like further information on the change please contact Richard Hutton on 01494 739500