New government rules mean deposits paid by private tenants should be protected against landlords who unfairly refuse to return them at the end of the tenancy.
Landlords now have to conform to a new set of guidelines for handling deposits– or face serious penalties.
All landlords who take deposits will be required to join a statutory tenancy deposit scheme.
Tenants' deposits will be safeguarded, and
tenants will get all or part
of their deposit back if they have kept the property in good condition.
Any disputes can be resolved in new ways intended to be faster and cheaper than court action.
If you are a tenant:- Anyone signing an assured shorthold tenancy agreement (the normal type) should check with their landlord or agent how their deposit will be protected. The tenant still pays the deposit but the money must be safeguarded through a Governmentapproved tenancy deposit protection scheme. The landlord has 14 days to tell you details of the scheme.
- There are sanctions against landlords who don't comply. You could take your landlord to court and, if he has not given you details of the scheme or has not put the deposit in an authorised scheme, the court will order the landlord to repay the deposit or pay it into a scheme.
The court must also order the landlord to pay the tenant a fine of three times the deposit within 14 days.
- If you are given notice to quit by your landlord, check whether your deposit is protected; if it's not, you may have a defence against eviction.
If you are a landlord:- If you take deposits, you must join one of three government-authorised deposit schemes. The free Deposit Protection Service is a custodial service: you pass tenants' deposits over to the DPS, which holds them until the end of the tenancy.
Alternatively you can join one of two insurance-based schemes, Tenancy Deposit Solutions Ltd or The Tenancy Deposit Scheme. Here you keep the deposits but pay an insurance premium.
- Landlords who fail to
follow the new rules can be
fined and may be unable to
get a possession order, if
they want to evict a tenant at
the end of a tenancy.
Contacts:www.direct.gov.uk/tenancydeposit
The Deposit Protection Service:www.depositprotection.com; 0870 707 1707
Tenancy Deposit Solutions Ltd: www.mydeposits.co.uk; 0871 703 0552
The Tenancy Deposit Scheme: www.tds.gb.com; 0845 226 7837
Banbury Citizens Advice Bureau, 26 Cornhill, Banbury: drop-in service. Advice line: 0844 848 7922.
Home visiting service: 07802-535582. Hours: 10am-4pm, Mon-Fri, except Tuesday (10am-1pm).
