Landlords struggle to keep up with new laws ahead of latest change
53% of landlords in the North West
admit that they struggle to keep up with changes in law relating to letting
property a week before a new deadline that could leave them with heavy fines for
missing.
There are already over 50 'Acts of Parliament' and more than 70 sets of
regulations that govern the private rented sector (PRS).
The new deadline; 23 June 2015; imposed as part of the 'Deregulation Act', affects
landlords and agents in England and Wales who still hold a deposit on a tenancy
that began before 6 April 2007; when Tenancy Deposit Protection (TDP) laws were
introduced; but since continued as a Statutory Periodic Tenancy (SPT) on or
after 6 April 2007.
Previously deposits taken in these circumstances have not needed to be protected
in a government authorised scheme and landlords are being reminded that they
could face fines of up to 3 times the value of deposit if they fail to protect
in time.
CEO of mydeposits Eddie Hooker commented:-
"It's important that landlords and letting agents are aware of the legislation
changes and how it affects them. They must act now and check whether they need
to protect any deposits and avoid a fine."
Richard Lambert, CEO at the National landlords Association, said:-
"Everyone will be relieved that the Deregulation Act has sorted out the
uncertainty created by the Superstrike and Charalambous judgements. Now the onus
is on those landlords still holding a deposit they haven't yet protected to make
sure they do so before the deadline."
Landlords who still hold deposits that were taken before the 6 April 2007, and
where the tenancy continued as a SPT prior to that date, aren't required to
protect it. However, if they don't then they won't be able to serve a Section 21
Notice, to regain possession of the property. Mydeposits, a government authorised scheme, is offering a 50% discount on their
joining fee for all landlords who sign up before the 23 June 2015, deadline by using
discount code:- 'SUM15.'
Eddie Hooker continued:- "Our advice is simple: if you still have a
deposit that was taken before 6 April 2007 then the belt and braces approach is
to protect it and provide your tenant with all the relevant information as soon
as possible. That way you can avoid a hefty penalty and regain possession if
needed.
Protecting a deposit with mydeposits is simple and can be done online 24 hours a
day, 7 days a week. We also have a dedicated team of advisors that are here to
help landlords and agents ensure that they act in time to protect older
deposits".
A detailed breakdown of what the 'Deregulation Act' is and how it affects
landlords and agents is available on the my deposits website.
