Final warning call for landlords
LANDLORDS could face huge fines if they have failed to register old deposits, under new legislation, which comes into force this month.
They have only days left to register deposits received from April 6 2007 with an “approved scheme” and supply information on payees before the new Deregulation Act 2015 comes into action on June 23.
Property and landlord specialists at Kirwans which has offices in Liverpool, Southport and Birkenhead, say lawyers and letting agents need to be fully aware of their obligations in light of the new retrospective laws.
Landlords who have failed to act, could face county court action and fines of thousands of pounds if the situation is not rectified. They could also be prevented from recovering possession of their property under section 21 of the Housing Act 1988.
Danielle Hughes, on the property team at North West firm Kirwans said: “This legislation has a retrospective effect and has the potential to put landlords in a very vulnerable position. Landlords who have not protected deposits have only days left to begin taking steps to address the issue and make the necessary arrangements.
“Shelter’s website offers a database check on which tenants can determine within three minutes whether or not their deposits have been protected. It’s that simple. No doubt savvy tenants will already be checking the position and waiting with baited breath in the hope that their landlord falls foul of the requirements.
“We’d advise landlords with tenants in living in their property at any time from and before April 6th 2007 to carry out a historical review and take immediate action; or face potential fines, county court action and potentially be unable to remove tenants from property.”
The Deregulation Act 2015 confirms that some deposits taken by landlords before April 6 2007 may also need to be registered. This is because landlords are to protect deposits and serve the prescribed information at the beginning of each new tenancy. This includes at the end of a Fixed-Term Assured Shorthold Tenancy.
Should the tenant remain in the property following expiry of a fixed term, the tenancy becomes what is known as a “Statutory Periodic Tenancy”. This is seen as a new tenancy agreement in law.
If a deposit was taken before April 6 2007, but the tenancy ran on as a statutory periodic tenancy after that time, landlords will still need to fulfil the new criteria.
