New tenancy deposit rules came into force on the 6th April 2012. Landlords and their letting agents must comply with these rules in order to avoid payment of a penalty as well as restrictions on obtaining possession of their property.
Since 2007 there has been legislation which provided that if a landlord or their agent failed to protect deposits received under an assured shorthold tenancy then they could be made to pay a penalty and might be restricted from obtaining possession of their property from a non-paying tenant.
Bury & Walkers acted for a number of landlords who successfully challenged numerous claims made by tenants under the existing legislation and acted for landlords in two of the four main cases relating to tenancy deposit claims including the leading case in the Court of Appeal of Honeysuckle Properties -v- Fletcher.
Gareth Archer from the Bury & Walkers Property Team confirmed that there are strict time limits for landlords to comply with the new legislation.
He said “landlords can no longer delay in dealing with tenancy deposits. A delay can result in payment of a penalty, up to three times the value of the deposit, and can also effect the landlord’s ability to obtain possession, either by way of a Section 21 Notice or, indeed, a Section 8 Notice.”
Failure to comply with the new rules can lead to a significant and costly delay in obtaining possession.
For more information please contact Gareth Archer or Lynne Branchflower at Bury & Walkers LLP on 0113 2444227 or 01226 733533 and l&t@burywalkers.com
