Residential Landlord Update
If you are a residential landlord you need to be aware of the changes to deposit protection.
The Deregulation Act 2015 (“the DA 15”) came into effect on 26 March 2015, bringing with it a number of significant changes for residential landlords.
The DA 2015 clarifies the uncertainty surrounding deposit protection following the Superstrike case.
Deposit Protection Changes (sections 30-32 DA 15)
- Where a deposit was received before 6 April 2007 and is held against a statutory periodic tenancy which also began before 6 April 2007, there is NO requirement to protect the deposit. However, should possession of the property be required through section 21 of the Housing Act 2004, the deposit must be protected and the prescribed information served. In this instance there is no penalty for late protection.
- Where a deposit was received before 6 April 2007 and is held against a statutory periodic tenancy which began after 6 April 2007 the deposit must be protected and the prescribed information must be served by no later than 23 June 2015.
- Where a deposit was received on or after 6 April 2007 and was protected at the time, there is no legislative requirement to re-protect the deposit or re-serve the prescribed information unless the tenant, landlord or premises has changed. However, the terms and conditions of the protection schemes vary and it is worth checking whether these place any additional requirements upon you.
It is essential that landlords act before the 23 June 2015 deadline to ensure compliance with the deposit protection requirements to avoid financial penalties. If you are unsure about what you need to do to ensure compliance contact Ellisons Property Litigation team who will be happy to help.