We have posted already (several times) on the issue of the increase in maximum rent threshold under the Housing Act 1988 which will occur on 1 October 2010.
While it is well understood that this will increase the number of assured shorthold tenancies it has been forgotten that the Act also includes assured tenancies, that is market rent tenancies with a security of tenure for life. These will also be affected by the change.
Therefore non-Housing Act tenancies which began after 15 January 1989 but before the 28 February 1997 will not convert to ASTs on 1 October but will convert to Assured tenancies. Equally, formerly Assured tenants who have lost their protection due to their rent being raised above the £25,000 threshold will regain their assured status.
Presumably this will affect relatively few tenancies but the effect will, of course, be profound. Landlords in this position would be well advised to make sure that they have clearly and unequivocally terminated these tenancies prior to 1 October by either evicting the tenants or, at the very least, signing deeds of surrender and granting new ASTs.
Filed under: England & Wales, England only, Housing Act 1988, rent threshold change
[...] automatically to assured shorthold tenancies. Except that some of them won’t. As pointed out by the PainSmith blog, in some circumstances, the tenancy will become an assured tenancy. Which will be very serious, [...]
[...] and before 28 February 1997 which was not assured or assured shorthold due to the threshold. As the Painsmith blog points out, these tenancies would turn into assured tenancies and not assured shorthold [...]
[...] and before 28 February 1997 which was not assured or assured shorthold due to the threshold. As the Painsmith blog points out, these tenancies would turn into assured tenancies and not assured shorthold [...]