Tenancy Deposit Protection Scheme Rules to Change

15 March 2012 Categories: News

Tenancy Deposit Protection Scheme Rules to Change

As of the 12th April 2012 the rules governing the protection of tenant deposits are to change. There are several important changes that apply to private rental sector landlords and according to the terms of the changes there will be very little leniency for landlords who fail to comply.
So what exactly are the major changes?

At present landlords and letting agents have a maximum of 14 days to protect a tenant deposit within a registered scheme and then provide the tenant with details of the scheme. Following the changes however the maximum time allowed will be 30 days, mainly because a lot of dispute cases are determined to be the result of slow administration practices.
In addition tenants that find their deposit has not been protected within the 30 day time period can file directly to the county court for landlord compliance.

The rules regarding landlord fines for non-compliance are also to change. At present a landlord who fails to fully protect a tenant deposit in a registered scheme is fined three times the amount of the deposit in addition to having to repay the deposit itself. After the changes though the size of the fine will be at the Judge’s discretion and will range from an amount equal to the deposit up to three times this amount.

Generally speaking the changes that are due to take effect will positively affect private rental sector landlords.