Tenancy deposit trap for landlords
A residential landlord usually requires a deposit to be paid by the tenant at the grant of an assured shorthold tenancy as security for the payment of rent and for the tenant looking after the property. If the tenant’s occupation of the property is then extended, either by entering into a new agreement or by the tenant simply remaining in the property beyond the original fixed term (as a statutory periodic tenant), the original deposit will commonly be ‘rolled over’ or continuously held by the landlord.
The Housing Act 2004 (as amended) requires a landlord of an assured shorthold tenant to protect a tenant’s deposit in a government-authorised tenancy deposit scheme within 30 days of the date of receipt and to provide the tenant with prescribed information in respect of that scheme. Should a landlord fail to meet the above requirements, the Housing Act provides that the landlord cannot serve a valid notice to terminate the tenancy under section 21 of the Housing Act 1988 until the terms of the Housing Act have been satisfied.
Questions have arisen as to whether the landlord’s retention of a deposit received prior to 6 April 2007 (the date the Housing Act came into force) is subject to section 213 of the Housing Act, which requires a landlord to place a deposit into an authorised scheme, and what happens in the case of an extended, or continuation, tenancy…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.