Daniel Pidgley
Litigation Executive
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Date Published:11 Mar 2016 Last Updated:22 Jul 2021

Urgent changes to Tenancy Deposit protection required before 23rd June 2015

Dispute Resolution

A new Act has now been passed by the Government to clarify the requirements for protecting tenant deposits.

The Deregulation Act 2015 came into effect from 26th March 2015 and was introduced following the Court of Appeal’s judgement in the case of Superstrike vs Rodrigues in June 2013.

Am I affected?

The Act now places particular burden on deposits taken for tenancies that began before 6th April 2007, which are still running and become a periodic (rolling month-by-month) tenancy on or after this date. This means that Landlords must protect the tenancy deposits received in these circumstances before 23rd June 2015 to avoid potential fines.

If a tenancy is renewed or rolls over onto a periodic basis, landlords will not be required to reissue Prescribed Information (details of the deposit scheme where monies are protected) to a tenant if the deposit remains with the same authorised scheme, and the parties and premises remain the same.

This new legislation has also been clarified to make reference to the fact that the term “the landlord” (as mentioned within the Prescribed Information) shall include those parties acting on behalf of the landlord, such as letting agents or management companies.

What if my tenancy became periodic before 6th April 2007?

There is currently no requirement for landlords to protect the tenant’s deposits taken before 6th April 2007, which also became a periodic tenancy before this date. However, landlords will not be able to serve a valid Section 21 Notice to regain possession of a property unless the tenant deposit is protected.

In summary, we recommend all landlords to seek legal advice if:

  1. If you have a tenancy which commenced before 6th April 2007;
  2. No new Assured Shorthold Tenancy has been signed; and
  3. A deposit has been received but not protected into a scheme.

To discuss your obligations as a landlord under this new legislation, please call Daniel Pidgley on 01202 525333.