The quiet increase of the Welsh AST threshold

The AST threshold in Wales will increase to £100k p.a on December 1st.

In October 2010 the Assured Shorthold Tenancy Agreement annual rent threshold for tenancies in England increased from £25k to £100k.  At that time no changes were made to the Welsh tenancy threshold. Statutory Instrument 1409, which was laid before the National Assembly for Wales on the 6th June 2011, means that the Welsh threshold will now also be increased to £100k.  This change takes effect from 1st December 2011.


It may come as a surprise to many as there hasn’t been a great deal of publicity or confirmation in advance of the changes – in stark contrast to when the change was implemented in England. 


As a consequence of the increased threshold, more tenancies will fall under Tenancy Deposit Legislation and members with effected properties must be sure to comply with TDS’s initial requirements (as with other authorised tenancy deposit protection schemes).

What do Members need to do?


Any tenancy affected by the legislative change needs to be protected quickly, and certainly before the 1st December 2011.
This concerns existing non-ASTs which:

  • will become ASTs on 1 December 2011 in Wales due to the change in rent threshold;
  • will continue beyond 1 December 2011 in Wales; and
  • are protected by TDS rather than another TDP scheme


Members must have registered these tenancies on the TDS tenancy database no later than 1st December 2011 for tenancies in Wales. However, Members need not wait until the law changes to do this.  Timely registration will minimise the prospect of a successful challenge on the grounds that the tenancies have not been registered within the statutory 14 days.

Members will need to provide a new tenancy agreement, or an addendum to the existing tenancy agreement, which explains the tenancy’s new status and when it will take effect.


We have updated the document ‘Guidance for dealing with non-Assured Shorthold Tenancies and the Increased Rent Threshold’ which can be found on our website, here.

 

 


Posted by Alex Britchfield, Deputy Independent Case Examiner on 7 November 2011

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