Currently viewing the tag: "Deposit Protection Scheme"

Lack Of Deposit Protection Information Costs Landlord Thousands

The Court of Appeal last week witnessed a landmark case as a landlord was ordered to return a tenant’s deposit plus 3 times the amount of the original deposit (the maximum penalty allowable by law) just because of an oversight with regards to the information provided about the tenancy deposit protection scheme used.

Ignorance Is No Defence

Ignorance Is No Defence

The tenant was in the process of being evicted from the property when it was claimed that the landlord was in no position to evict the tenant having not fully complied with the rules of deposit protection.

The tenant claimed they had not been given all relevant information about the deposit protection scheme, despite the information being available in an easy-to-obtain leaflet.

The landlord agreed there had been minor omissions regarding information about the deposit protection scheme, however, the tenant had not suffered in any way as a result.

The case was first brought before the magistrates court where the landlord won the case, but following the tenant’s appeal, the original verdict was overturned by the Court of Appeal and awarded in favour of the tenant.

The total financial cost to the landlord has yet to be revealed but estimates place the amount well into thousands of pounds (GBP).

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Complaints Over Tenancy Deposits Increase

Complaints Over Tenancy Deposits Increase

Homeless charity Shelter is urging private sector rental tenants to make sure their deposits are protected, having seen calls regarding deposit protection issues rise by 80% in the last two years.

According to the homeless charity, the average deposit for a privately rented residential property currently stands at £979 (GBP), meaning that if a deposit is withheld at the end of a tenancy, people will be pushed into debt, or even have difficulty securing to a new home.

Landlords who fail to place their tenants’ deposits in one of three authorised schemes within 30 days will face prosecution but it seems many tenants are unaware of the new deadline, leaving some landlords free to flout the law.

Shelter’s chief executive, Campbell Robb, commented: “It is extremely worrying that we have seen such a huge rise in problems with tenancy deposits at a time when privately renting is no longer just a stepping stone to something better, but a long term reality for more and more families.”

Landlords who don’t protect tenants’ deposits can face a penalty of one to three times the full value of the deposit, which will then be awarded to the tenant.

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