On the 26th march 2015 the houses of parliament passed an act relating to the lodging of deposits in England and Wales.
The rules are now as follows:
Deposits post-April 2007 where the tenancy became periodic after that date
All deposits must be protected now and prescribed information served as required by the regulations. There is a 90 day time limit i.e., until 23 June 2015. If the deposit is protected and the information given within this time frame it will be treated as though it has always been protected.
Deposits taken post-April 2007 that have already been protected and the prescribed information already given during the original fixed term
This is the major change – if you have registered the deposit in time already and the prescribed information is already given, in other words all the regulations complied with, you do not have to re-protect the tenancy and give all the prescribed information all over again when granting a new fixed term or when the tenancy automatically becomes a statutory periodic tenancy which was the argument in superstrike.
It would be different of course if you unprotected the deposit and put the deposit into a new scheme as then you would need to re-serve the certificate and prescribed information. This is a major change to the current law.
Deposits taken before April 2007 which became periodic before that date
Although you would not be in breach of any law at the moment, in other words, you don’t have to protect the deposit, if you want to serve a Section 21 Housing Act 1988 Notice the deposit will need to be protected or the deposit returned to the tenant (or the person who paid it). Landlords will no longer be liable for any financial penalty for non-protection.
If you are unsure what you need to do next, then why not give Knights a call on 01202 536496.