Buy to let industry 'could be affected by AST change'

15 March 2010

Written by David Whittaker

Buy to let landlords in higher rent brackets may soon have to protect deposits or face breaching the law.

According to chairman of the National Landlords Association (NLA) David Salusbury, new government legislation could have huge impacts on the private-rented sector.

The Assured Shorthold Tenancy (AST) threshold is to rise to £100,000 on October 1st this year.

It was hoped the AST rise would lead to more clarity and transparency for those in the buy to let industry.

But the NLA says it may actually be damaging because the change is retrospective so it is applicable to existing tenancies.

Properties with annual rents of between £25,000 and £100,000 when the rules come into force will become an AST "overnight".

Mr Salusbury said: "It could have a wide-ranging impact on the letting of private residential property."

He added that the government has "rushed through" the change and not considered its consequences.

The government explains that AST is one of the commonest tenancy types in the private-rented sector but that tenants should know whether their contract is of this type or not.

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