The key deposit protection changes affecting landlords and letting agents are as follows:
- Assured Shorthold Tenancy (AST) deposits taken before 6 April 2007 that subsequently moved onto a statutory periodic tenancy (SPT) must now be protected in a tenancy deposit protection scheme. Landlords have until 23rd June 2015 to protect the deposit. Not doing so will prevent you from being able to issue a section 21 notice (regain possession of a property) and you could also be faced with a penalty fine.
- Deposits that were taken before 6 April 2007, but where the tenancy became periodic before this date means landlords will not be required to protect the tenant’s deposit. However, this means landlords will not be able to serve a section 21 notice unless they do get the deposit protected.
- The Act also means that it is no longer necessary to re-register a deposit where the deposit was taken in respect of an AST after 6 April 2007, even when a SPT commences, provided that the landlord and tenant of the property remain the same, and that the deposit remains within the same scheme.
If you would like any advice on property law matters please email info@ha-law.co.uk or telephone 020 7788 7465 to speak to a HA Law Partner.
