Final date for deposit scheme protection

June 10, 2015

The date is fast approaching when Landlords must comply to the new law in relation to tenancy deposit schemes, the date for the diary is 23rd June.
Any landlord holding a deposit taken prior to the 6th April 2007 which has not been protected by the 23rd June under one of the Tenancy Deposit Schemes currently in action could incurr serious financial sanctions being taken against them should this not be rectified.

The Deregulation Act, which came into force in March 2015, modified the rules on protecting tenants deposits in order to provide a definitive guideline in relation to landlords requirements and responsibilities.

 

As every landlord should know, where a tenant entered into an agreement and paid a deposit after 6 April 2007 the landlord was required to protect the deposit and give the tenant the required information, however where a tenancy started before this date and a deposit was paid, there was no legal requirement for the landlord to protect it, following a further change it stated that  provided the landlord complies with the act and protects a deposit paid to prior to 6th April 2007 by 23rd June this year no sanctions will be taken against them for failing to protect the deposit.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

How to secure a rented home if you used to pay rent up front

One change that has come into effect under the Renters’ Rights Act (RRA) is that landlords may no longer accept more than one month’s rent in advance of a tenancy beginning. Previously, there was no limit to how much rent tenants could pay up front to secure a property, which was particularly helpful in certain…
Read More →
Kerb appeal
Breaking News

Whoever Leads Britain Next Must Focus on Growth, Housing and Opportunity

Neil Louth – Group Executive Director, LRG and CEO, Acorn Group From my perspective, the question is less about who occupies Number 10 and more about what they do once they get there. Whether it is Sir Keir Starmer continuing in office, Andy Burnham emerging as a future challenger, or someone else entirely, the next…
Read More →
Breaking News

Biggest Shake-up of Home Buying in Decades

Families and first-time buyers set to save time, money, and stress under major changes to the homebuying process – supporting the next generation and those locked out by a slow and unfair system New sales packs to ensure buyers have the information they need upfront, earlier binding agreements, and digital tools will halve the number…
Read More →
Breaking News

More than half of home movers try D.AI.Y

but 38% say it gave them bad advice   The latest research from Yopa has found that 57% of home movers have engaged in D.AI.Y, to help maintain, repair and improve their homes, although more than a third have been given advice that later turned out to be incorrect. Yopa surveyed recent homebuyers to understand…
Read More →
Breaking News

Home buying journey is about to become unrecognisable

Claire Van der Zant, CEO of Novus Strategy, comments on the Government’s homebuying reform “The industry has been very vocal in its demands for mandation and this is the most impactful example yet of government intervention that will drive the change everyone has been asking for. What it will mean is the complete reorganisation of…
Read More →
bank of england interest rate
Breaking News

Bank of England holds interest rates at 3.75%

The Bank of England has announced its decision to hold the base rate at 3.75%. This decision comes as a result of wider economic uncertainty and inflation (CPI) increasing to 3.3% in March and remaining above the Bank’s 2.0% target. Here are some thoughts from within the property industry.   Matt Smith, Rightmove’s mortgage expert…
Read More →