AST changes 'could have negative effect on landlords'

Posted by Emily Jones

Alterations being made to the Assured Shorthold Tenancy (AST) threshold have been criticised by one organisation.

According to the National Landlords Association (NLA) - which is headquartered in London and claims to represent more than 19,000 fee-paying members - the changes could damage buy-to-let property owners.

Under the terms of the plans, the AST threshold will rise to £100,000 in October.

This change will apply retrospectively, meaning it will affect existing agreements.

Because of this, any tenancy with an annual rent between £25,000 and £100,000 will become an AST, the NLA noted.

Chairman of the organisation David Salusbury said: "Although we are still piecing together the facts, the retrospective nature of this change is highly regrettable and it could have a wide-ranging impact on the letting of private residential property."

He went on to suggest that the government is rushing through the change without fully considering the consequences. Greater consultation should occur, he added.
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15/03/2010 15:26

News category: Property

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