PRN: Wales Increases Mandatory Deposit Threshold for Assured Shorthold Tenancies
Wales Increases Mandatory Deposit Threshold for Assured Shorthold Tenancies
LONDON, November 8, 2011 /PRNewswire/ --
The Tenancy Deposit Scheme has warned all landlords and letting agents in Wales that most tenancies with an annual rental value of up to Â£100,000 will be required to be registered for Tenancy Deposit Protection from the beginning of next month.
From 1 December 2011, the threshold for Assured Shorthold Tenancies in Wales is being raised from Â£25,000 to Â£100,000. This brings it in line with the mandatory requirements in England where the threshold was raised in October 2010. As a result of this, it is believed that many more private rentals in Wales will be subject to Tenancy Deposit Protection legislation.
Existing tenancies over Â£25,000, which were previously unaffected by legislation, will now have to be registered with the Tenancy Deposit Scheme or one of the other authorised schemes.
For these tenancies, landlords and their letting agents must now provide a new tenancy agreement or an addendum to the existing agreement. These will explain the tenancy's new status as an Assured Shorthold Tenancy, and when it will take effect.
Registration of all Assured Shorthold Tenancies falling under the new threshold must be made within 14 days of December 1. However, the Tenancy Deposit Scheme will accept registration before the start date.
It is likely that shared rental properties may be particularly affected by the new legislation.
Further details of the new mandatory requirements in Wales and deposit registration are available from the Tenancy Deposit Scheme's website: http://www.tds.gb.com or click here to go to the TDS Guidance document for dealing with non Assured Shorthold Tenancies and the Increased Rent Threshold.