On 1 October 2010 the upper limit of £25,000 for Assured Shorthold Tenancies increased to £100,000.
All tenancies that have an annual rent of between £25,000 and £100,000 will automatically convert to an Assured Shorthold Tenancy.
The legal change takes place irrespective of what is written on your tenancy agreement. So if your tenancy agreement states that the tenancy is a common law one, after 1 October that statement will no longer be correct as it will be an Assured Shorthold Tenancy.
If you have a tenancy that has converted into an Assured Shorthold Tenancy then when your tenancy next comes up for renewal, make sure that you use the correct form of agreement.
Deposits for new tenancies now within the £25,000 - £100,000 threshold now need to be protected with one of the three government-approved tenancy deposit schemes.
If you need to make a tenancy agreement for a property with annual rent over the new limit of £100,000, you can use Lawpack's Contractual Tenancy Agreement.
Published on: October 18, 2010