Tenancy Deposit Changes Arriving Shortly
The changes to tenancy deposit protection created by the Deregulation Bill will be arriving shortly.
I have previously noted in some detail the key changes to tenancy deposit protection that are created by the this Bill.
This Bill has now passed through its parliamentary ping-pong, the process by which the Commons considers amendments made in the Lords, and simply awaits Royal Assent. This must occur before the end of March 2015 due to the election and may even occur this week.
Slightly unusually the provisions relating to tenancy deposit protection will come into force immediately on the Bill receiving assent. That means that the worst effect of Superstrike will be ameliorated immediately.
Key points to note are:
- Deposits taken before April 2007 where the tenancy has become periodic after that date must be protected and have prescribed information served within 90 days at which point they will be protected properly and treats as always having been.
- Deposits taken after April 2007 that were protected with PI served at some stage during the initial tenancy will be treated as having had the PI served on every renewal or on becoming statutory periodic tenancies.
- Deposits taken before April 2007 which be are periodic before that date must be protected or returned before a s21 notice can be served. There is no financial penalty with regard to these.
- The PI is amended to allow for agents details to be given in place of landlords details where the agent is handling the deposit.
This is a big opportunity for the Private Rented Sector to sort out any lingering deposit issues they may have. From this point forward all deposits for ASTs will have to be held within a scheme.