Legal news
Are you a private Landlord? Read this! - 9th January 2012
Localism Act 2011 – the effects on a Tenancy Deposit Scheme
The Localism Act received Royal Assent on 15 November 2011 and it is expected that many of its measures will come into force by April 2012. The Act makes a number of significant changes to a Tenancy Deposit Scheme:
• The time period for complying with the initial requirements of a scheme and providing the prescribed information is to be extended from 14 to 30 days after receipt of the deposit.
• If the landlord fails to comply with the time limits imposed by statute the penalty, (minimum the amount of the deposit but no more than three times the deposit), will be payable. The penalty therefore will no longer necessarily be “equal to three times the amount of the deposit.
• The tenant will be able to bring a claim for the penalty even if the tenancy has ended.
• The Landlord will no longer escape liability for the penalty if he/she complies with the requirements before the day of the hearing of the tenant’s claim for the penalty. The Act therefore has reversed the Court of Appeal’s ruling in Tiensa –v Vision Enterprise Limited.
• The restriction on the service of a section 21 Notice has been removed where the deposit has been returned in full, or else returned less any agreed deductions and if a tenant has brought a claim, that claim has been either determined by the Court, withdrawn or settled.
For more information, please contact Anna Gora at agora@pwhmllp.com
