New Tenancy Deposit Rules

Hopefully we now have some clarity in respect of deposit protection.  The Deregulation Act 2015 came in at the end of March and contains some issues which affect landlords.  The one I wanted to bring to your attention today is in respect of deposit protection.

Following the Superstrike case there was confusion as to what had to be done when the tenancy became periodic, the Deregulation Act clarifies this and states that if you protect your deposit within 30 days of receipt and serve the prescribed information within 30 days you don't need to do anything further throughout the tenancy.

If you find that you have forgotten to protect a deposit or serve the prescribed information you have until 23 June 2015 to put this right.  After that date you will be deemed not to have complied with the tenancy deposit rules and your tenant can claim compensation up to three times the amount of the deposit and you will not be able to serve a section 21 notice unless the deposit is returned to the tenant.

For those who have a fixed term tenancy that became periodic before 6 April 2007 you have a choice, you can either protect any unprotected deposit now and serve the prescribed information, or you can do this before you serve a section 21 notice.

If you have any queries or are unsure on what needs to be done email at propertyhawk@fidler.co.uk

Rebecca Brough

Solicitor

Fidler & Pepper

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