Changes in the Lettings Market from 1st October 2010

17th August 2010

Potential landlords are often put off entering the lettings market through the amount of legislation governing this sector.

 
However, those in the Midlands need not worry too much about the latest alteration to the law, according to expert Emma Watkinson, who is a lettings manager of the Ashbourne Branch of John German.

 
As from 1^st October 2010, many non-housing act tenancies will automatically change into Assured Tenancies overnight because the £25,000 threshold is being raised to £100,000.
“There are several things that determine whether or not a tenancy is a non-housing act tenancy or a housing act tenancy,” said Emma. “Currently, pure rent must be less than £25,000 a year for it to constitute a housing act tenancy, or assured tenancy and pure rents above this amount will be non-housing act tenancies.

“The premises must be the tenants’ main home, if not it will be a non-housing act tenancy. The landlord must not be owner/occupier and if he or she is then the property will be a non-housing act tenancy.  Additionally, it must not be a company let to be a housing act tenancy.

“Under the present law, if pure rent is more than £25,000 the tenancy will fall into the non-housing act tenancy category, but as from October 1 2010 this threshold is increasing to £100,000, which means that all non-housing act tenancies with rents from £25,000 to £100,000 will automatically turn into assured tenancies. Therefore, all deposits held against these particular properties must then be registered with a deposit protection scheme.”

However, Emma says that the new legislation should not affect many, if any, tenancies around the Midlands. “Many southern rental properties may be affected as rents are typically higher in the south of the country,” she added.

 
Any landlord confused by this, or any other element of the law relevant to the lettings market, is welcome to contact Emma Watkinson for impartial advice. Her telephone number is 01335 340 737.

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