Housing Solicitors

The government is running a 90-day amnesty for buy-to-let landlords who have not yet paid their tenants’ deposits into one of three Government schemes.

The new rules on tenant’s deposits – which average around £1,200 – apply to assured short hold tenancies.

Landlords who fail to pay their tenants’ deposits into the schemes face fines of up to £3,600 – set at three times the average deposit in the private rental sector.

Previously, landlords were allowed to keep their tenants’ deposits as surety against damage to a property. In some cases, this meant a long wait for tenants to have their deposit returned when a tenancy ended.

The deadline for landlords to pay deposits into one of the three schemes is now 23 June. The amnesty started on 26 March, The Telegraph reports.

The deposit protection scheme encompasses three different schemes – the Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme.

In Scotland and Northern Ireland, different scheme have been introduced to protect private rental sector tenants’ deposits.

There are fees of around £20-£25 charged per deposit – while MyDeposit also charges a £20 fee to join.

The deposit protection service was introduced in 2007, but estimates suggest that as many as 500,000 private sector landlords in England and Wales may not yet have paid into one of the schemes.

There are an estimated 1.5 million private landlords across England and Wales – and since 2007, private sector rents have continued to soar, increasing the size of deposits rental tenants need to find to secure a home. Tenancy agreements made before the rules were introduced in 2007 are also included in the scheme.

The new rules contain several exemptions – including licence agreements and university lettings.

However, landlords who fail to register with a deposit protection scheme and pay in tenants’ deposits may find they are in breach of the tenancy agreement if a landlord and tenant dispute arises.

Landlords may also find that when a tenancy agreement ends, they may not be able to ask their tenant to leave if their deposit was not paid into a deposit protection scheme.

Richard Lambert of the National Landlords Association said that the new Deregulation Act would simplify the “muddied” obligations of landlords towards their tenants.

“There are now a large number of deposits that need protecting, despite not previously needing to be – and it’s likely that many landlords won’t even be aware of what they need to do,” said Mr Lambert.

“Landlords who still hold a deposit should protect it if they haven't already done so, which will ensure that you can legally regain possession of a property.”

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors can advise on a wide range of Landlord and Tenant issues, including advising private sector landlords on their legal obligations as a landlord, as well as Landlord and Tenant disputes and serving eviction notices.

Duncan Lewis can also advise private rental sector tenants on:

• Disrepair of rented property
• Section 146 Notices (notice to quit)
• Unlawful eviction.

For expert legal advice on housing law, call Duncan Lewis solicitors on 020 7923 4020.