Thackray Williams

Landlords take deposits from their tenants (usually amounting to one or two months rent) as security against damage to their property, unpaid rent etc. Since 6 April 2007 it has been unlawful for landlords of residential tenants to merely ‘hold on’ to their tenants’ deposits.  They are now required to join one of the various tenancy deposit schemes and either the deposit must be lodged with one of the scheme providers or may be retained by the landlord subject to an undertaking to the scheme provider that, if there is a dispute in relation to the repayment of the deposit, the landlord will comply with any directions given to him or her in relation to the payment of this deposit.

The law changed owing to the perceived problems with unscrupulous landlords unfairly retaining their tenants’ deposits when those tenants vacated.  Unfortunately, whilst this probably related to a small minority of landlords with the vast majority being fairly reasonable in the treatment of their tenants, all private landlords are now affected.

The sanctions for non-compliance with the tenancy deposit scheme are severe.  A landlord cannot get possession of his premises as of right (called the Section 21 Procedure) and, upon application to the Court by the tenant, the landlord (if he has not complied with the requirements of the tenancy deposit scheme) will be “fined” a sum of money equal to three times the amount of deposit.

For more information contact Alan Porter on 020 8290 0440 or email alan.porter@thackraywilliams.com