As the debate regarding tenancy deposits lands in the UK’s court of appeal next month, Rick Flay, director at Belvoir Sheffield has revealed that landlords in Sheffield are expressing their concerns.
Next month the UK’s Court of Appeal will decide if rent paid in advance is also a tenant’s deposit, and could result in major changes if it is regarded as such.
Rick Flay, whose agency on Campo Lane in Sheffield specialises in property to let Sheffield, said: “It had been decided that the advance rent was a deposit but over the last few months this gone back and forth following separate appeals and the case is now to be determined by the Court of Appeal, one of the highest in the country.”
It follows the specific case of Johnson v Old, which is due before the Court in March. In this case, six month’s rent was paid in advance, along with a separate amount which was taken as a deposit. The tenant argued that the rent taken had constituted a deposit after the landlord requested possession of the property.
Rick added: “Any deposit payment in our opinion has to be treated as different to rent. It is held as security against damages caused by the tenant throughout the tenancy and remains the tenant’s money, until final damages are negotiated.
“The legislative side of owning a property can be a huge headache for anyone who is a first time landlord, or a DIY landlord. The law is constantly changing and landlords need to be talking to a professional lettings agent to determine what their responsibilities are.”
Belvoir Lettings Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances and Mortgages.
