Good Riddance to the Assured Shorthold Tenancy Trap

Sellers and buyers of leasehold properties will be delighted to know that one of the provisions of the Renters’ Rights Act 2025 that has already come into force establishes that a lease granted for a fixed term of more than 21 years cannot be an assured shorthold tenancy (AST).

Before this legislation, any lease with a ground rent of more than £250 outside London or more than £1,000 in a Greater London Borough was at risk of being terminated under the Housing Act 1988 if the tenant was in arrears.

As a result, many sales were delayed because buyers’ lawyers and lenders insisted on their sellers completing a deed of variation with the landlord to ensure that the Housing Act 1988 did not apply.

Such deeds should no longer be required which is good news for everybody on the sale and purchase of a flat or maisonette. 

If you are selling or buying a flat or maisonette or would like some advice on the above, please contact us on 01892 662233 or reception@dwlaw-online.com. 

Written by Roy Willis - Partner