Deregulation Act: TDS welcomes end to Superstrike, but landlords must act now!

The Tenancy Deposit Scheme has welcomed the new Deregulation Act, bringing important clarification to deposit protection law.

The most eagerly awaited change is the confirmation that landlords no longer have to serve new prescribed information every time a tenancy renews, either as a statutory periodic or as a new fixed term tenancy.  New protection and prescribed information on a protected deposit is only required when there is a change in tenant, landlord, premises, or deposit protection scheme. 

The decision by the Court of Appeal in Superstrike v Rodrigues that a statutory periodic tenancy is a ‘new’ tenancy brought with it the implication that new protection and prescribed information was required even where the circumstances remained the same.

Furthermore, the Act now means that landlords who took a deposit before 6 April 2007 (the date the Housing Act came into force) on a tenancy which became periodic after that date, have until 23 June 2015 to protect the deposit if they have not already done so.  When this grace period ends, landlords who have not protected the deposit could face the penalty of between 1 and 3 times the value of the deposit and will not be able to use a section 21 notice to gain possession of the property. 

If the tenancy became periodic before 6 April 2007 the landlord is not obliged to protect the deposit but will be blocked from regaining possession of the property using a section 21 notice if the deposit not protected before the notice is given.

Steve Harriott, CEO of TDS said;

“We fully welcome the Deregulation Act. TDS were in full agreement with the government and industry bodies that the implications of Superstrike v Rodrigues had to be addressed by legislation and we are pleased that the government has brought forward these proposals in the Act to simplify the process of deposit protection.

“We will be working in the coming weeks to raise awareness amongst landlords that all deposits should now be protected, even if they were taken before the Housing Act came into force.

“There will be landlords unknowingly in breach of the law in three months’ time, and we strongly urge all landlords to find out what the Deregulation Act means for them.

We will be issuing detailed briefing to members very shortly”

For more information please contact

Chris Kendall

Communications Officer, The Dispute Service

chris.kendall@tenancydepositscheme.com 01442 780560

27th March 2015

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