The Deregulation Act 2015 – implications for tenancy deposits

Meet the team:

  • Tel: +44 (0) 161 829 2599
berg logo
Share this post: linkedin Twitter facebookshare Email
Posted in:berg Advisory, Real Estate|June 4, 2015 | Join the mailing list

The Deregulation Act 2015 received Royal Assent on 26 March 2015 and brings in important changes relating to deposit protection legislation.

Implications for deposits taken before 6 April 2007

Since 6 April 2007 landlords of properties let on assured shorthold tenancies have been required to protect tenants’ deposits in an approved tenancy deposit scheme and to provide the prescribed information to the tenant within 30 days of taking the deposit.

If a landlord took a deposit on an assured shorthold tenancy (AST) before 6 April 2007 and continues to hold that deposit against a statutory period tenancy which also started before April 2007 the landlord does NOT need to protect the deposit. However, if
the landlord wishes to gain possession of the property using notice under Section 21 of the Housing Act 1988, the deposit must be protected and the Prescribed Information issued to the tenant prior to the landlord serving the Section 21 notice.

If the landlord took a deposit on an AST before 6 April 2007 and continues to hold that deposit against a statutory periodic tenancy which began after April 2007 it must be protected with an authorised scheme by whichever is the earlier of either:

·    23 June 2015; or
·    Before a court decides on proceedings under Section21 of the Housing Act 1988; or
·    Before a court decides on proceedings under Section 214 of the Housing Act 2004 (for failure to protect a deposit)

Deposits taken since 6 April 2007

If a landlord took a deposit on an AST after 6 April 20007 and correctly protected and served the Prescribed Information to the tenant, the landlord does not need to reissue the Prescribed Information to the tenant on future renewals of the AST or where the
AST rolls into a statutory periodic tenancy so long as the tenancy details have not changed and the deposit remains in the same tenancy deposit protection scheme.

Other changes

It is also now acceptable for agents’ details to be given in place of landlords’ details where the agent protected or is dealing with the deposit.

For more information about any of the above or for practical commercial advice on this or any other aspect of employment law, please contact
Ian Barker of the Berg Real Estate Team on 0161 833 9211 or email him at
Ianb@berg.co.uk.

(The information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Berg or any of its partners or employees. Professional legal
advice should be obtained before taking, or refraining from taking, any action as a result of this article.)

Join our mailing list

More from berg

 

'Having the right contracts is key to the success of our business.  berg achieved exactly the right balance, protecting revenue streams and safeguarding against risk while maintaining our commercial ...

Generis Technology Limited
 

Key figures at berg include the ‘sensible and pragmatic’ Alison Loveday and Michelle Gray, who is leading the advice on a complex unfair dismissal claim that has reached the Court of Appeal....

Legal 500 2016, Employment – Employee/union firms legal advice