According to government figures Deposit’s valued upto £300,000 were unsecured in the first quarter of 2017. Many Landlords across the country are breaching tenancy deposit rules by not securing the tenants deposit in a deposit protection scheme. This breach can prove to be very costly for Landlords as failing to protect the deposit would allow the tenant to claim compensation upto 3 x the amount of their deposit. Failure to register your deposit within 30 days of receipt as well as providing the correct prescribed information within 30 dasy of receipt would mean you may be entitled to a claim under the Housing act 2004.
Tenants are in a position to claim compensation if the Landlord:
• Takes too long to place your tenancy deposit in a protection scheme
• Does not provide you with information in regards to the tenancy deposit protection scheme
• Does not place the tenancy deposit in a protection scheme
If you believe your Deposit has not been protected or you did not receive the prescribed information within 30 days, then start your claim here
Upon signing the tenancy agreement it is the Landlords responsibility to ensure that the tenant receives the prescribed information in regards to their tenancy deposit. However, negligence on part of the Landlords could enable the tenants to sue their landlord by applying to the county court for compensation.
There are three government backed deposit protection schemes:
Deposit Protection Service (DPS)
Dispute Service (TDS)
Mydeposits
Landlord’s legal obligations
Landlords are legally required to place the tenancy deposit in a secure scheme within 30 days of receiving it. They must also provide the tenant with information in regards to where the deposit is secured. Failing to provide the information or taking in excess of 30 days to provide the tenant with the information could also provide the tenant grounds to sue the Landlord.
The government backed tenancy deposit protection schemes were brought to bring transparency in the housing market. The deposit protection schemes ensured that the deposit monies were not used elsewhere by Landlord’s as well as making it easier for tenants to obtain their deposit when the tenancy comes to an end. However, these changes have left many Landlords exposed to the law as they have failed to protect these deposits.
When can Tenants Claim?
For tenants to be able to make a claim for compensation they must be in an AST (Assured Shorthold Tenancy) 90% of tenancies tend to be an AST. In addition, the annual rent must not exceed £100,000. The tenant must also have rented the property in the last six years. The rented property must not be University/College accommodation or through a housing association.
The landlord must have breached the tenancy deposit rules by either:
Taking too long to place your tenancy deposit in a protection scheme;
Not providing you with information in regards to their tenancy;
Failing to place the tenancy deposit in a protection scheme;
Should the Tenant be worried in case the Landlord decides to terminate the tenancy?
The Landlord cannot terminate the tenancy or regain possession in the event they have failed to protect your deposit and the tenancy is still ongoing. This means the tenants are legally protected and have every right to go through the legal channels and claim compensation should they still be in the tenancy.
