Tenancy Deposit Disputes

From 6 April 2007 it became unlawful for a Landlord to accept a tenancy deposit in connection with an Assured Shorthold Tenancy without securing it in one of the Government approved deposit protection schemes.

To comply with the 2004 Act the deposit must be secured within 30 days of the deposit being received and certain information (known as prescribed information) must be sent to the tenant within 30 days of the deposit being received.

Securing Tenancy Deposits

If a Landlord fails to correctly secure the deposit they will be liable (a) to repay the full deposit and (b) to pay a financial penalty of between 1 and 3 times the amount of the deposit.

A failure to correctly protect the deposit, including providing the tenant with prescribed information, also means that a Landlord loses their ability to rely on Section 21 of the Housing Act 1988 (i.e., the no-fault ground for possession) until the breach has been remedied.

Ellis Jones has a specialised Dispute Resolution team available to assist both Landlords and Tenants.

If you are Landlord that has failed to protect a deposit or if you are a Tenant and you think that a deposit you have made has not been correctly protected, our expert solicitors are here to help.

We pride ourselves on understanding your specific matter and the resolution you are looking for. Get in touch with our experts for further guidance.