The 23rd of June is fast approaching, marking the date by which landlords must comply to the new law in relation to tenancy deposit schemes.
If any landlord holds a deposit taken prior to the 6th April 2007 which has yet to be protected under one of the Tenancy Deposit Schemes currently in action then serious financial sanctions may be taken should this not be rectified before the aforementioned date in June and the said deposit protected accordingly.
The Deregulation Act, which came into force in March 2015, modified the rules on protecting tenants deposits in order to provide a definitive guideline in relation to landlords requirements and responsibilities.
Furley Page property specialist Sarah Woolnough, explained: ‘Time is running out for landlords who do not comply with the latest legislation. As every landlord will know, where a tenant entered into an agreement and paid a deposit after 6 April 2007 the landlord was required to protect the deposit and give the tenant the required information. Where a tenancy started before this date and a deposit was paid, there was no legal requirement for the landlord to protect it.’
‘The subject of tenants’ deposits has been under much scrutiny and there have been several changes to the law since the requirement to protect came into force on 6 April 2007. While much of this has been publicised it still remains a confusing subject for landlords and their agents and it is wide open for a savvy tenant to make a claim against an unsuspecting landlord who may be in breach.’
Landlords were offered 90 days in which to protect their deposits in one of the many Tenancy Deposit schemes. This deadline is set to expire on June 23rd 2015.
Sarah continued: ‘To comply with the new rules, landlords must protect their tenants’ deposits in one of the Schemes available and also serve on their tenants a copy of the Deposit Protection Certificate, the terms and conditions of the chosen Protection Scheme, the Prescribed Information required to be served by the Scheme and copies of any accompanying leaflets.’
Provided that the landlord in question complies with the Act by the set date, they will not suffer any sanctions for failing to protect the deposit.
Click here to read original article ‘Deposit protection deadline looming’
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