Tenancy Deposit Scheme – Threshold increased to £100,000.
The Tenancy Deposit Scheme was first introduced in April 2007, where residential landlords holding an assured shorthold tenancy with a rental income upto £25,000 were required by law to hold their tenants’ deposits in an authorised scheme for the first time. The scheme was introduced to protect deposit monies and to ensure that residential landlords were held fully accountable for the deposits they took from tenants at the start of the tenancy.
Now 3 years on, the rental income threshold has increased to include all tenancies with annual rent up to £100,000. The changes came into force on 1st October this year and any residential landlords who earn a rental annual income from a single tenancy of £100,000 need to ensure that their tenants’ deposits are placed in one of the three authorised schemes.
The new threshold applies to existing tenancies where the deposits were taken after 6 April 2007, not just those created after October 2010 when the laws come into force.
Landlords holding an assured shorthold tenancy to which the legislation applies are required to register the deposit taken from the tenant with one of the three statutory protection schemes within 14 days of receiving the deposit and provide prescribed information to the tenant.
Residential Land has over 1,200 rental properties in central London and with the AST threshold being increased to £100,000 per annum and many of Residential Land’s existing contractual tenancies exceeding £25,000 per annum our lettings team had to ensure that current deposits held within this bracket were all registered prior to 1st October. Residential Land uses My Deposits deposit protection which is an insurance based scheme, for full information please visit www.mydeposits.co.uk
Residential Land are Prime Central London’s largest private landlord, specialists dealing in flats for rent, property investment sales and acquisitions. To view our latest rental properties click here
