As rules surrounding tenant deposits change dramatically this month, private landlords are warned that the new laws could see them end up in court.
With sweeping changes being introduced later in April, a Solicitor in Yeovil is encouraging property investors across the UK to ensure they lodge tenant deposits in a government backed scheme before the changes take place. According to Ceri Stephens, a senior associate at a practice in the Somerset town, unless landlords follow the letter of the law completely they may find themselves facing a massive fine.
She was quoted saying: “The fundamental principle stays the same – that tenants are guaranteed their deposits back at the end of the tenancy, if they have met the terms of their agreement and do not damage the property. It is a legal requirement for a landlord to use an authorised deposit protection scheme. What is new is that courts will accept no excuse for non-compliance, whereas before they could exercise discretion, and landlords will face financial sanctions. Non-compliance also means that you cannot serve a valid notice seeking possession of the property, and a tenant will be able to bring proceedings against you even if the tenancy has come to an end.”
The new rules will affect all private landlords and will be yet another piece of legislation they must comply with along with their health and safety certification and landlord insurance. The question of tenant deposits, and the return of them, has been a vexed issue for many in the private sector for a long time. With an estimated 10% of housing now controlled by the private sector the new laws will affect millions of people and has been broadly welcomed on all sides.