As the Government aims to implement some changes to tenant deposit legislation, allowing landlords and agents to file the deposit within 30 days of receipt, Rick Flay, director at Belvoir Sheffield, the leading letting agent in Sheffield, has welcomed the move and the clarification it will bring.
The changes to the Deposit Scheme regulations expected in April have been a cause of confusion, as they appear to relax the requirements, giving 30 days to comply and allowing the courts discretion to award a penalty of between one and three times the deposit amount, shouldthey fail to do so.
This is in contrast to the existing legislation which requires compliance within 14 days and contains a non-negotiable penalty of three times the deposit for non-compliance.
Rick Flay, Director at Belvoir Sheffield, who offer a wide range of property to rent in Sheffield, said: “The Government’s aim behind these changes seems to be to encourage the courts to enforce the regulations by making their requirements fairer.
“Making landlords pay the deposit into the scheme prior to serving a S21 notice and before going to court is also a good thing as this protects both parties. More often than not the emphasis is on protecting the tenant and I am not alone when I say that I truly believe that landlords are given quite a rough ride. “
Another change that could affect some landlords is the new ruling regarding mandatory penalties for those who fail to register their deposits correctly or fail to give their tenants the required information regarding the tenancy deposit scheme. Current legislation states that a fine equal to three times the deposit amount is payable by landlords who are in breach of the Act, but as of next year the size of the penalty will be at the discretion of the court, and could be as little as the actual deposit amount.
“I would advise that a clause is added to the scheme allowing the deposit to be released to the landlord if a possession order is made, landlords can often find themselves out of pocket due to legal fees and arrears so something needs to be done about this.”, added Rick.
