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.

Latest articles

Landlords juggle 6.5 buy-to-let loans on average, research finds

Landlords with borrowing are managing an average of 6.5 individual buy-to-let loans across just...

Wales and North East top BTL yield table as returns edge higher

Gross buy-to-let rental yields rose modestly in the first quarter, with Wales and the...

Buy-to-let lending rises on remortgage surge as purchase demand remains subdued

Buy-to-let lending increased sharply at the end of 2025, driven by remortgaging activity, while...

Paradigm hires Nick Delawa as business development director for London and South east

Paradigm Mortgage Services has appointed Nick Delawa as business development director, with responsibility for...

Fleet Mortgages cuts two-year fixed rates across key BTL ranges

Fleet Mortgages has cut pricing by 20 basis points on its 75% LTV two-year...

Latest publication

Other news

Landlords juggle 6.5 buy-to-let loans on average, research finds

Landlords with borrowing are managing an average of 6.5 individual buy-to-let loans across just...

Wales and North East top BTL yield table as returns edge higher

Gross buy-to-let rental yields rose modestly in the first quarter, with Wales and the...

Buy-to-let lending rises on remortgage surge as purchase demand remains subdued

Buy-to-let lending increased sharply at the end of 2025, driven by remortgaging activity, while...