subject: To let London – Utilize AST to your advantage [print this page] To let London Utilize AST to your advantage
An increasing number of tenants are paying high rents for accommodation. However, neither them, nor the landlords, are aware of the fact that this phenomenon often leaves tenants with very less legal protection, particularly in the central London area. Let's take a look at this in detail.
Going down the memory lane, the best boom in the to to let London scenario happened with the implementation of the Housing Act 1988, which was a rather debatable topic at the Parliament at that time. The Act basically introduced a new style of tenant agreement, which gave landlords the assurance that they would be able to regain possession of their premises once the lease or period or tenancy was over, minus the legal restrictions that were prevalent at that time. The Assured Short hold Tenancy (AST), as the agreement was called, opened the rental sector to numerous private investors, by balancing the requirement of protection to tenants with provisions that made it easier for landlords to let London properties for rent. Under this agreement, any court was not allowed to give orders for repossession within the first six months of tenancy., following which the same can be done on some pre-requisite conditions.
The legal requirements of the AST are :
1. The property must be self contained 2. The property must be the tenant's main residence 3. The annual rent must not be more than 25,000.
Tenants often tend to overlook the last requirement here, i.e., the over 25,000 part. And since London does have rents in excess of this amount, the problem starts right there. For instance, an apartment being shared by 5 people each paying 100 is not admissible under the AST, since the total rent exceeds the annual limit. However, landlords and to let London property letting agents are often unaware of this fact, and include the total rent in the agreement nevertheless.
If you too have experienced something similar, clarify the same with your landlord or letting agent immediately, for you are certain to have less legal protection in such a scenario.
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