8 November 2011
Landlords in Wales with tenancies up to £100,000 a year are reminded they will automatically default to an Assured Shorthold Tenancy (AST) from the 1st December 2011. If the landlord has taken a deposit for such a tenancy, it may need to be protected.
From next month, the AST threshold will increase to include all tenancies with annual rent up to £100,000 – up from the current £25,000.
Tenants will benefit from the change as they will be covered by tenancy deposit protection under an AST. Landlords will be able to use “off-the-shelf” tenancy agreements.
Deposits taken before 6 April 2007 do not have to be protected unless the tenancy agreement has been renewed. Letting agents should also notifying their clients about the need to protect deposits in a government-approved scheme, such as my|deposits.
Eddie Hooker, Chief Executive, my|deposits, said:
“The threshold increase is excellent news for tenants in Wales paying higher rents, who will now have the security of knowing their deposit must be protected.
“By using my|deposits, landlords can continue to hold onto the deposit money themselves during the tenancy, and deal directly with the tenant when the time comes for them to move out.
“They will benefit from our dispute resolution service if there is a disagreement over the return of the deposit. Any dispute can thus be sorted out by us, rather than relying on a lengthy court procedure.”
Landlords who fail to protect a deposit on an assured shorthold tenancy can face penalties.
For more information about my|deposits, visit www.mydeposits.co.uk or call 0844 980 0290.
For further information, please contact:
T: 020 7840 8925
M: 07508 031 084
NOTES TO EDITORS:
Mydeposits is the trading name of Tenancy Deposit Solutions Limited, a company jointly owned by the National Landlords Association and HFIS plc T/A Hamilton Fraser Insurance (the Scheme Administrator) to deliver an insurance-backed tenancy deposit protection scheme under contract from Communities & Local Government. Landlords and letting agents wishing to use this scheme are required to register with the Scheme Administrator. They can find out more and register by visiting www.mydeposits.co.uk. Registered members of the Scheme are able to protect and unprotect deposits at the beginning and end of tenancies. Fees are tax-deductible. In the event of a dispute at the end of the tenancy agreement, both parties are offered access to alternative dispute resolution (ADR). This procedure will be evidence-based, relying on documentation and records.