We now have some clarity on the issue of when to protect your Tenancy Deposit and when to serve the Prescribed Information.

The Housing Act 2004, amended by Localism Act 2011, stated the following:

• Deposits must be protected in a recognised scheme within 30 days of receipt

• Tenant must be served with Prescribed Information within 30 days of receipt

This all seemed quite clear, until the case of Superstrike v Rodriguez.

In this case the Appeal Judge decided that a periodic tenancy was a new tenancy. A periodic tenancy arises after the fixed period of your tenancy expires.

This meant that when the tenancy became periodic the deposit had to be re-protected and the prescribed information reserved.

This lead to all sorts of problems, many landlords who protected the deposit and served the prescribed information at the start of the tenancy were not aware of this and failed to re-protect the deposit and re-serve the prescribed information, meaning that the sanctions then applied.

The Deregulation Act 2015 has now clarified matters.

 The Act came into force on 26 March 2015 and has immediate effect for deposits.

 Tenancies Pre 6 April 2007

If your fixed term and periodic tenancy arose before 6 April 2007 you do not have to protect the deposit, however if you wish to serve a section 21 notice you must

either protect the deposit or return it to the tenant.

Tenancies Post 6 April 2007

If you have protected the deposit and served the prescribed information at the start of the tenancy it will remain protected and you do not need to do anything.

 If you have not protected your deposit or served the prescribed information you have until 23 June 2015 to do so.

 If you fail to protect the deposit or serve the prescribed information after 23 June 2015 your tenant can claim compensation up to 3 times the amount of the deposit and you will not be able to serve a Section 21 Notice unless the deposit is returned to the tenant.

Thank you to Rebecca Brough at Fidler & Pepper Solicitors for providing us with this clear and concise breakdown of these new changes. Rebecca can be contact on 01623 448331 or via email using: rbrough@fidler.co.uk

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