Residential landlords fact tough penalties for failing to comply with legislation, deadline for tenant deposits to be in a tenancy deposit scheme now expired for residential landlords
6th April 2007 saw some changes to the way landlords can hold onto their tenants’ deposits. It became mandatory for all residential landlords of Assured Shorthold Tenancies (AST’s) to make use of a tenancy deposit scheme and all tenant deposits must be paid into the tenancy deposit scheme upon receipt. Landlords also need to be aware that with effect from 26th March 2015 the law has now been amended to include AST’s created prior to 6th April 2007. It gave 90 days of grace so after 23rd June 2015 there should no longer be tenant deposits held privately by any landlord – it will be illegal.
This amendment was made under Section 32 of the Deregulation Act 2015 which amended the Housing Act 2004.
Landlords have until 23rd June 2015 to comply with this legislation or they will be liable for tough financial penalties for noncompliance. Landlords may also have additional problems in recovering possession of the property from the tenant if they do not comply with this new landlords legislation. So, if your aim of renovating the property when it is an unoccupied property, it may be more difficult to achieve.
Changes have also been made by The Deregulation Act to the service and effectiveness of Section 21 Notices when the tenant has complained of disrepair. The best advice if you need some assistance is to speak to a solicitor or a professional letting agent who can provide up to date information and interpretation of current landlords legislation.
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