There has been a lot of confusion about the significant new changes around tenancy agreements, and what they will mean for landlords, and tenants, so I wanted to clarify this and let you know how you may be affected. From October 1, shorthold tenancies where the annual rental amount is above £25,000, but not more than £100,000 a year, will become Assured Shorthold Tenancies and this will apply retrospectively.
However, tenancy deposit protection should not apply retrospectively and, therefore, only new deposits and renewals taken on or after October 1 will definitely need to be protected.
This is absolutely the right thing to do and, going forward, the change will close a loophole that previously left many of the most vulnerable tenants, like students, with no protection. You can read more about this in our previous blog ‘The DPS welcomes Government move to safeguard more tenants’ deposits’.
Even though the current information states that deposit legislation should not be imposed retrospectively, landlords should be prepared and protect their deposits anyway, just in case this position changes following legal scrutiny. It’s better to be safe than sorry.
Tenants affected by the change can check whether their deposit has been protected with The DPS by visiting our website.