Assured shorthold tenancy threshold will increase to £100k in October

The Government has informed the National Landlords Association (NLA) that the Assured shorthold tenancy (AST) threshold will rise to £100,000 on October 1 2017. The proposal to increase the threshold had been broadly welcomed by the NLA as an attempt to offer greater clarity and transparency for landlords and tenants. But it seems that a quirk of the process means the change will be retrospective and will be applied to existing tenancies. As a result, any tenancy with an annual rent between £25,000 and £100,000 in existence on 1 October 2023 will become an AST overnight. The NLA says the proposals have the potential to be damaging to a significant number of landlords who entered into contractual tenancy agreements in good faith. Landlords and tenants will no longer be able to negotiate individual terms for their tenancy and the rights and responsibilities associated with the Housing Act 1988 will be extended to these higher rent properties.