The threshold for tenancies to be within the scope of HA 1988 will be increased from £25,000pa to £100,000 (as from 1st October)

This change will apply to currently existing tenancies (ie not just new tenancies after that date). Thus, the bulk of tenancies already in place where the annual rent is above £25,000 but below £100,000 will automatically become assured shorthold tenancies (unless they are otherwise excluded from HA 1988 – such as company lets).

Some obvious problems seem to arise:

the tenancy deposit scheme requirements will apply to new tenancies, but do they apply to existing £25,000-£100,000 tenancies? Presumably the answer is that they do not, on the basis that it is the date when the deposit was received that counts (and the tenancy will not have been an assured shorthold on that date);

there may be problems with tenancies that are due to end less than two months after 1st October. L will not be able to serve a valid s21 notice giving the statutory minimum two-month notice to end the tenancy. But it is not clear if a notice served before changeover would be valid for s21 purposes;

forfeiture actions for rent arrears may also face complications. Actions commenced prior to 1st October will fall under the provisions of HA 1988 after that date, and so tenancies that may technically have been ended by the service of a claim form may be held to have been revived by the legislative changes. If that is the case, then the action would only be able to proceed on the service of a valid s8 notice (unless the court exercises its discretion to dispense with service of such a notice).

Source: Painsmith (http://blog.painsmith.co.uk).