CHANGES TO TDP LAW COME INTO EFFECT AS DEREGULATIO
In my experience, when I have mentioned Superstrike and prescribed information to a client, they tend to look pretty blank and wonder what I’m talking about and there have been times whether, in fact, I’m wondering whether I’m speaking the same language!
Most landlords who I have discussed this with, unless they have personally experienced a tenancy where their tenant refuses to vacate due to a section 21 notice being invalid if they or their agent failed to provide the correct prescribed information they would not even be aware that this fight had been going on behind the scenes to change this legislation to support them and their agents.
Of course, many professional landlords are in the know and see how important this deregulation bill is and it is great news to us at Latham Smith and to all other agents dealing with deposits.
The National Landlords Association (NLA) have confirmed on their website this week that the Deregulation Bill received Royal Assent and now is the time for all landlords (or their agents) to ensure that their properties are compliant with the new laws.
The Act contains amendments to TDP legislation, lobbied for by the NLA, to finally correct the issues created by the Superstrike and Charalambous legal decisions which imposed unreasonable duties on landlords with tenancies which pre-dated TDP.
- Any deposits taken before April 2007 and where the tenancy has become periodic after that date, must be protected and the prescribed information must be served within 90 days. Then the deposit will be treated as if it had always been protected.
- Any deposits taken after April 2007that were protected with the prescribed information and have been served at some stage during the initial tenancy, will be treated as if the prescribed information had been served on every renewal or whenever a statutory periodic tenancy arose.
- Any deposits taken before April 2007, which became periodic before that date must be protected or the money must be returned to the tenant (or the person who paid it) before a s21 notice can be served! Landlords will not be liable for any financial penalty for non-protection.
- The prescribed information rules have been amended to allow for agents details to be given instead of landlords details where the agent is dealing with the deposit. The 90 day period is a chance for all landlords and letting agents to regularise the situation regarding their deposits.
This is a really positive step and ensures the protection of our landlords at a time that, in our opinion, that most legislation that is passed protects tenants, rather than landlords.
Call us at Latham Smith if you have any questions on what this legislation means to you.
We look forward to speaking to you.
Your Property ~ Our Business
(Reference to NLA website – article posted 27th March 2015)
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