The Government has decided that from 1st October 2010 the Assured Shorthold Tenancy (AST) threshold will rise to £100,000 from £25,000. The rise will apply retrospectively and will be applied to existing tenancies.
In short, this change means that any tenancy with an annual rent of between £25,000 and £100,000 will become an AST overnight and landlords and tenants will no longer be able to negotiate individual terms for their tenancy. Instead, the rights and responsibilities associated with the Housing Act 1988 will be extended to these higher rent properties. Additionally, all deposits taken for these tenancies will need to be protected and the procedur efor evicting tenants will be as is laid out in the aforementioned Housing Act.