What the new shorthold tenancy classifications for UK private property landlords means

  • Deposit guarantee scheme for all properties earning upto £100k rental per annum
  • Failure to do so in 14days means no Section 21 (eviction order) can be served
  • Fines up to three times the original deposit
  • Student accommodation and multiple occupancy also affected
  • Advice: Use a reputable and experience lettings agent, email info@propvestment.com for our quote and special offers.
  • New legislation mainly affects high rental properties in particularly in London
  • Extra Red Tape that makes it difficult for honest, reputable Landlords


Private property landlords in London in particular face new red tape from next month and hefty fines if they do not comply with changes to Assures Shorthold Tenancies (ASTs).
Until now many tenants paying more than £25,000 a year , the equivalent of about £2,085 a month, fell outside the AST classification, but from October 1 the threshold increases to £100,000.

From that date onwards any individual tenant paying up to £100,000 for an apartment or house that is their main residency automatically gets AST status. This means the landlord must hold the deposit in either the Deposit Protection Service or register it with Tenancy Deposit Solutions and inform the tenant which scheme it is protected under, and provide proof that it has been registered.

This needs to be done within a 14 day timescale or the landlord risks legal action by the tenant which could, in some circumstances, involve the landlord having to pay the tenant a sum of up to three times the original deposit.

The new law will apply across the UK but will mostly affects landlords in London because so many tenants pay above £25,000 per year and under £100,000. Many properties in multiple occupation, such as student accommodation, will also be affected.

Landlord with tenants already in situ, and without a lettings agency, will face a particular struggle in coming to terms with the legislation, according to experts.

Until a landlord complies, he or she faces a huge fine and will be unable to serve a section 21 notice, that’s the legal notice obliging the tenant to leave the property. The landlord cannot get a possession order until the deposit is lodged.

The measure has been vigorously opposed by the lettings industry but the new UK government is going ahead and it will apply retrospectively, therefore existing tenancy deals have to abide by this, as well as new deals struck after October 1.

The government insists that this mandatory deposit system offers additional protection to the tenant but lettings experts say experience with the old system for renters who pay up to £25,000 suggests it may lead to an increased numbers of disputes

Artice sourced from www.propertywire.com

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