The amendments to the Housing Act 2004 which has raised the threshold on assured and assured shorthold tenancies to £100,000 per annum came into force on 1 October 2010.
If you are a landlord affected by the change then it is recommended that you visit the Department of Government and Local Communities as it has published some useful FAQs on its website, here’s the link:
http://www.communities.gov.uk/housing/privaterentedhousing/annualrentalthreshold/
Most importantly it is noted that for those landlords who held deposits on existing common law tenancies before the rent threshold increase took place on 1 October 2010, but subsequent to the Housing Act 2004 amendments now have an assured shorthold tenancy they are not required to register their tenant’s deposits immediately, although this is still advised. Only upon renewal of the tenancy agreement or if a new deposit is taken is it advised to be necessary for the tenant’s deposit to be registered.
Of course, the recent amendments to the Housing Act 2004 have yet to be interpreted by the Courts. The writer notes that although the Court’s have been seen to take a better late than never approach to cases concerning the registration of tenancy deposits in pre-existing assured shorthold tenancies, it is undoubtedly always going to be best practice to ensure that a tenant’s deposit is registered at the landlord’s earliest opportunity if nothing more than to avoid the risk of potentially costly litigation later.
For further information on this issue or any other disputes relating to commercial or residential property please contact Gemma Hadlow on 020 7288 4767 or gemmahadlow@boltburdon.co.uk