Deregulation Act – Guidance
What is the Deregulation Act and how does it shake things up for landlords like you?
Read these changes could affect your landlord requirements in this quick guide.
Understanding the Deregulation Act and tenancy deposit protection:
Are you a landlord or tenant wondering about the rules surrounding tenancy deposit protection? The Deregulation Act of 2015 brought about significant changes in this area.
Understanding these changes is crucial for maintaining a smooth and compliant tenancy process. In this blog post, we’ll break down the key points of the Act and how they impact landlords and tenants.
Deposits before 6 April 2007
If a deposit was received before 6 April 2007 and is held against a statutory periodic tenancy that began before the same date, landlords are not obligated to protect the deposit under the Housing Act 2004.
However, there's a catch. Starting from 26 March 2015, if a landlord intends to gain possession of the property using section 21 of the Housing Act 1988, the deposit must be protected and prescribed information must be provided before issuing a valid section 21 notice. It's worth noting that there's no financial penalty for late protection in this scenario.Deposits Before 6 April 2007, but held against a post-6 April 2007 tenancy
If a deposit was received before 6 April 2007 and is held against a statutory periodic tenancy that began after 6 April 2007, landlords are required to protect the deposit and serve prescribed information.
This must be done by 23 June 2015 or earlier, before a court decides on proceedings under section 21 Housing Act 1988 or section 214 Housing Act 2004. If the tenancy no longer exists or no deposit is held on 26 March 2015, the deposit protection requirements are deemed to have been complied with.Deposits received on or after 6 April 2007
If a deposit was received on or after 6 April 2007 and was correctly protected at the time, there's good news. The deposit does not need to be re-protected, and prescribed information doesn't need to be served again upon renewal or at the start of a statutory periodic tenancy. However, certain conditions apply:•Tenant(s), landlord(s), and premises must remain the same
•The deposit must be held in the same scheme
Prescribed information and contact details:
Prescribed information is essential in tenancy deposit protection. It includes various details, and interestingly, it can include details of a person representing the landlord. This is particularly important when an agent has protected the deposit on behalf of the landlord.
mydeposits requirements:
If you’re a landlord using mydeposits, you’ll need to re-protect the deposit at the start of each tenancy renewal and pay the relevant fee. However, if the tenancy rolls into a statutory periodic tenancy and you’ve notified us, there’s no need to re-protect the deposit.
The Deregulation Act brought clarity and guidelines to the world of tenancy deposit protection. It’s essential to understand the specifics to ensure compliance and avoid any unnecessary complications.
Remember, while we’ve summarized the key points here, consulting a legal professional for detailed advice is always recommended.
For more information, you can visit www.mydeposits.co.uk.