TDS - 'Superstrike' minister responds

We have recently written about the implications of the 'Superstrike' case which has thrown some confusion over the status of deposits held by landlords for tenancies that have become statutory periodic tenancies.  This is because the court of appeals ruling was that periodic tenancies were in fact new tenancies.  The implications under the Tenancy Deposit Scheme is that the deposits would require protection under one of the approved Tenancy Deposit Schemes.

In a recent response Housing Minister Mark Prism responded to landlords concerns by issuing a letter to the Residential Landlords Association in which he stated that:

“This was not the intention of the legislation and we are urgently exploring whether new legislation is required to clarify the situation.

“I understand that concerns have also been raised that the decision could have implications for some tenancies where a deposit has been protected in an authorised scheme in relation to a tenancy begun after 6 April 2007 and the fixed term has expired, and the tenancy continues as a statutory periodic tenancy.

“While the Court of Appeal did not make a decision on these particular facts and we cannot advise on individual cases, as a precaution, landlords could decide to re-issue the prescribed information to their tenant(s) which should ensure they can rely on the section 21 procedure if they wish to end the tenancy.

“Again, we are exploring whether new legislation is required to clarify the situation.”

Property Hawk waits with bated breath for the outcome.  In the meantime we would advise landlords not to panic.  If the problem gets to large then the government will have to act. 

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