Landlords who own some of the most expensive rental properties could be exempt from signing up to the new national PRS database.

The register is being rolled out across England from December but while most assured tenancies will need to be registered, high-rent tenancies above the £100,000 annual Housing Act threshold are currently outside its scope, according to Yasmin Ulhaq, founder of London property management firm, Glenfield Property Management (pictured above). This is particularly relevant at the upper end of the London rental market where landlords will need to start signing up from next July.

She says it’s an important distinction that many landlords may have missed. “It means that a £2,000-a-month rental would ordinarily need registering, while a £15,000-a-month prime London property – which generates annual rent of £180,000 - could currently be exempt, depending on how the tenancy is structured."

Requirements

The current registration requirements apply to landlords of assured and regulated tenancies, meaning that the majority of conventional private landlords will be brought within the scheme. However, Ulhaq says landlords shouldn’t assume a property is exempt simply because it attracts a higher rent - the legal status of the individual tenancy is what matters.

She adds that the government also has scope to extend the database to other tenancies in future, making this an area landlords will need to keep under review.

Complicated

“The process may become more complicated where properties are jointly owned or held through companies, trusts or other ownership structures, as the correct legal landlord will need to be identified,” adds Ulhaq. “For overseas owners and family-office structures, which are commonplace within the prime London market, making sure the correct legal landlord is registered will therefore be particularly important.”

Chris Norris, chief policy officer for the NRLA, tells LandlordZONE: “High value tenancies have always sat outside of the scope of the Housing Act. The NRLA does not have any particular concerns about this continuing.”

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