Tenancy Deposit Protection

New legislation affecting tenancy deposits came into force on the 6th April 2007; this legislation has a major impact in the private rented sector. Tenancy Deposit Protection (TDP) is new legislation introduced under the Housing Act 2004 to ensure that when a tenant pays a deposit, and is entitled to get it back, they can be assured this will happen.

All deposits taken for a new Assured Shorthold Tenancies from this date must be protected in a Government-authorised Tenancy Deposit Scheme (this also includes an existing tenancy that is renewed and a landlord agrees a new fixed-term tenancy/extension, the initial deposit taken must then be lodged with a tenancy deposit protection scheme). All landlords must comply with these regulations. Failure to observe the rules & regulations regarding Assured Shorthold Tenancies after the 6th April 2007 are harsh: The Court will order repayment of the deposit to the tenant, furthermore:

·          The court will order the Landlord to pay 3 times the deposit amount to the tenant as compensation for not holding it correctly in the first place
·          The court could order further costs
·          Whilst non compliant, the Landlord will forfeit the right to serve a Section 21 notice to repossess the property and will only be able to regain possession if  the Tenant surrenders the property or if the Tenant significantly breaches the Tenancy Agreement.    

Juicy Property Ltd is a member of The Deposit Protection Service (DPS), which is administered by The Dispute Service.

                                                                              

Call 01708 30 30 30 to arrange a valuation