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The Court of Appeal has had a further look at the issue of tenancy deposits for assured shortholds under the Housing Act 2004. The idea behind the scheme was, as one judge put it, “to put an end to complaints by residential tenants that their deposits had been unreasonably withheld by their landlords at the termination of the lease, or, in some cases, had even been misappropriated”. The landlord has both to protect the deposit in a scheme and provide the tenant with information about the scheme used.
There is a down side for landlords whilst the deposit is not held under an authorised scheme or the landlord has not complied with the initial requirements of an authorised scheme within 14 days of receiving the deposit.
The landlord in such a situation is in a poor position because:-
The lesson must be - if in doubt about a deposit under an assured shorthold get advice – do not risk the double whammy of a claim by the tenant and the inability to use the S21 procedure to gain possession.
Speak to Jame Staton on 01274 377651 to get further advice.