Piggybank News

March 27, 2012

Changes to Tenancy Deposit Protection

The information below was recently circulated by the National Landlords Association

The Department for Communities and Local Government (DCLG) has published the required regulations bringing in amendments to TDP  arrangements in England and Wales.

The changes to protection requirements and potential sanctions for non-compliance will come into force on 6 April 2012.

What does this mean for landlords?

In brief, from 6 April, the Localism Act makes the following changes to the law:

  1. The time limit for protecting a deposit and providing the required information to the tenant will extend to 30 days from 14 days from the date of receipt.
  2. If the landlord fails to comply with the legislation, the court will have discretion as to the amount of the penalty payment which will be between one and three times the amount of the deposit;
  3. The penalty will be payable even if the landlord complies with the scheme requirements before the hearing of the tenant’s claim;
  4. The tenant will be able to apply to the Court for a penalty payment even if the tenancy has ended.
  5. If the landlord fails to comply with the legislation within the given time period he will lose the right to serve a Section 21 Notice unless the deposit has been returned in full (or with agreed deductions) or following the tenant’s claim being decided, withdrawn or settled.

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