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

Bridging completion times fall to eight-year low as speed regains priority

The average time taken to complete a bridging loan fell to 43 days in...

Accounts manager jailed after £767k theft from Newcastle panel management firm

A senior employee at Newcastle-based Pure Panel Management has been jailed after embezzling more...

Cambridge BS opens new funding round for local housing and homelessness projects

The Cambridge Building Society has opened applications for its Community Fund, continuing its commitment...

Assetz Capital expands development finance offering

Assetz Capital has updated its development finance proposition to allow planning gain and residual...

MIMHC offers free mental health first aid training

The mortgage and property finance sector is rolling out a series of free mental...

Latest publication

Other news

Bridging completion times fall to eight-year low as speed regains priority

The average time taken to complete a bridging loan fell to 43 days in...

Accounts manager jailed after £767k theft from Newcastle panel management firm

A senior employee at Newcastle-based Pure Panel Management has been jailed after embezzling more...

The mortgage protection gap advisers can’t ignore

The Financial Conduct Authority’s (FCA) consumer research findings published late last year, offered an...