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Urgent Action Required by Landlords to Protect Tenants' Deposits

Landlords are advised to beware of the looming deadline imposed in respect of unprotected deposits following the enactment of the Deregulation Act 2015.

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The new legislation provides that any Landlord of residential property who has taken a deposit before 6 April 2007 must protect it in a recognised scheme and serve the required prescribed information upon the tenant by 24 June 2015 (this date could be even earlier if an application has already been made to Court).

Action Must be Taken by 24 June 2015

As long as this action is taken by 24 June 2015 it will be as if the deposit had always been protected and the prescribed information served.

Any Landlord failing to take this step will risk not only a large fine from the Court (up to three times the deposit) but also the risk that a valid Section 21 notice cannot be served, and ultimately may be unable to re-gain possession of the property.

If you would like any advice or assistance, on the effect of the introduction of this legislation, please contact me, or one of our specialist team members, on 01743 280280.