The maximum rent threshold for HA 1988 tenancies increases to £100,000 on 1 October (it is currently £25,000). See our May 2010 issue (p24) for some of the problems this creates.

One key question will be the position of tenancy deposits taken by Ls in respect of tenancies that started prior to 1 October and which were not assured shortholds at that time – but which will become assured shortholds on 1 October. In the view of most commentators, the trigger for the protection of a deposit is the date it is received (in connection with an assured shorthold). Since these deposits were received prior to 1 October (and were not received under an assured shorthold), it would seem they are outside the tenancy deposit scheme. However, government guidance says ‘our intention is that these new assured shorthold Ts should have the same protection as existing Ts, so if the tenancy started after 6 April 2007, L will have to protect the deposit’. Whilst most commentators think that view is wrong, the prudent advice is to advise Ls that all deposits relating to £25,000-£100,000 tenancies should be protected within tenancy deposit schemes as soon as possible, and certainly promptly after 1 October.