Landlords warned over tenancy deposits

Published on

Landlords are being warned that they have just a matter of weeks to protect tenancy deposits, or face thousands in fines, the Tenancy Deposit Scheme (TDS) has warned. 

The new Deregulation Act means more tenancy deposits are now under deposit protection law if received before 6 April 2007, and gives landlords until only 23 June to register them in a government approved scheme. Otherwise they face a penalty of between one and three times the value of the deposit and restrictions on regaining possession of their property.

A series of court rulings brought urgent need to clarify the law when consternation arose over which deposits must be protected and in what circumstances prescribed information documents must be given to tenants. If landlords do not give tenants full written information about their protection they still face the fine, even if the deposit is protected.

Deposits must now be protected by 23 June if received before 6 April 2007 and if the tenancy renewed on a periodic basis after that date.

TDS chief executive Steve Harriott said: “Landlords have only a matter of weeks to comply before the amnesty ends and penalties take effect. A small number of deposits are exempt but I would urge any landlord who holds an unprotected deposit to register it online with Tenancy Deposit Scheme immediately to avoid any future problems.”

If a tenancy renewed on a periodic basis before 6 April 2007 deposit protection is not compulsory. However the landlord will still be prevented from regaining possession using the standard section 21 notice unless they protect or return the money.

Harriott also said the Act has highlighted that many landlords have failed to protect deposits even under the existing laws.

He said: “We have seen a surge in landlords contacting us in recent weeks. Many have only just become aware that they should have already protected deposits; a stark reminder that thousands of landlords have been falling foul of deposit protection law, often unknowingly.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

[tds_create_account btn_bg_h="#000000" f_text_font_family="global-2_global" show_version="" tdc_css="eyJhbGwiOnsiYm9yZGVyLXJhZGl1cyI6IjUiLCJkaXNwbGF5IjoiIn19"]

Latest articles

Access FS rolls out Elev8 adviser CRM

Access Financial Services has launched Elev8, a new CRM for mortgage and protection advisers,...

Cotality joins OPDA to support open property data standards

Cotality has joined the Open Property Data Association (OPDA) as the industry group continues...

Your clients have already asked AI

The FCA published research on 27 August showing that 56% of 18- to 40-year-olds...

Cambridge BS family moves into Rent to Home property

A family of four has moved into a Cambridge Building Society rental property in...

FCS Compliance to hold free AML webinar for property professionals

FCS Compliance is to hold a free webinar examining changes to money laundering regulations...

Latest publication

Other news

Access FS rolls out Elev8 adviser CRM

Access Financial Services has launched Elev8, a new CRM for mortgage and protection advisers,...

Cotality joins OPDA to support open property data standards

Cotality has joined the Open Property Data Association (OPDA) as the industry group continues...

Your clients have already asked AI

The FCA published research on 27 August showing that 56% of 18- to 40-year-olds...