New law protects tenants’ deposits

Landlords who fail to protect tenants’ deposits, face stiff penalties as a new law starts on 6th April.

The Tenancy Deposit Protection Act has been introduced to prevent a small number of bad landlords from wrongly withholding part or all of a tenant’s deposit.

Under the new rules, landlords must hold the tenant’s deposit in one of the three Tenancy Deposit Schemes. Within two weeks of receiving a deposit, the landlord must inform the tenant in writing about the scheme being used to protect the deposit.

Landlords who do not comply with the new rules must pay the tenant compensation equal to three times the deposit, to be paid within 10 days. They also risk problems getting their property back when the tenancy agreement ends.

Cllr Matthew Laban, cabinet member for housing, said, ”We welcome this new law. It encourages tenants and landlords to make clear agreements on the condition of the property before the tenancy begins by drawing up inventories of fixtures and fittings in order to avoid disputes. It is long overdue.”

The scheme covers Assured Shorthold tenancies entered into after 6th April 2007 - these are the vast majority of tenancies.

At the end of the tenancy, deposits must be returned within 10 days of the landlord and tenant agreeing how much of the deposit would go towards breakages or wear and tear. Disputes can be resolved through an independent mediation scheme avoiding expensive court action.

Landlords and tenants wanting more information about tenancy protection should contact:

The National Landlords Association www.landlords.gov.uk

Association of Residential Letting Agents www.arla.co.uk

Communities and Local Government’s Tenancy Deposit Protection Team

20 44 4400 Email Tenany.deposits@communities.gsi.gov.uk

The Scheme Providers

The Deposit Protection Service www.deposits.co.uk

Tenancy Deposit Solutions www.mydeposits.co.uk

The Tenancy Deposit Scheme www.tds.gb.com

Enfield Council’s Community Housing Service

Housing Advice Team, Telephone: 020 8379 1000

This document was last updated on 2007-03-08 14:47:33 published by the Communications team. Document Reference:LBE_128155