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Tenancy deposit changes on their way
Article date: 20/03/2015
Key changes to the law affecting tenancy deposit protection for
residential occupiers are about to come into force. The changes
will be affected by the Deregulation Bill, which now only awaits
Royal Assent. This may be given this week.
Unusually, if the assent is given, then the provisions that affect tenancy deposit protection will come into force immediately, and not on a future date.
The key points to be aware of are:
- deposits taken before April 2007 where the tenancy has become periodic after that date must be protected and have prescribed information (PI) served within 90 days at which point they will be protected properly and treated as always having been,
- deposits taken after April 2007 that were protected with PI served at some stage during the initial tenancy will be treated as having had the PI served on every renewal or on becoming statutory periodic tenancies,
- deposits taken before April 2007 which are periodic before that date must be protected or returned before a s21 notice can be served. There is no financial penalty with regard to these,
- the PI is amended to allow for agents' details to be given in place of landlords details where the agent is handling the deposit.
The changes represent a further opportunity for residential
landlords to sort out any lingering deposits that are not already
protected, as in the future all deposits for ASTs will have to be
protected regardless of when the tenancy began.
If you would like any further information please contact Nyree Applegarth on 0845 111 5050.