Concerning statistics have revealed that 48% of landlords admit to struggling with changes in legislation relating to letting property. This is certainly concerning given that today marks the deadline that could leave many facing substantial fines.
New laws
As part of amendments to the Deregulation Act, landlords and agents in England and Wales that still hold a tenancy deposit on an agreement that started before 6 April 2007 are now permitted to protect the deposit in an accredited scheme. Previously, deposits taken before this date have not been required to be protected in this way.
Research from the National Landlords Association and mydeposits, a secure government approved tenancy deposit protection scheme highlighted that many are unsure on how to adhere to the new rules.
‘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,’ said Eddie Hooker, CEO of mydeposits.’ Our advice is simple: if you still have a deposit that was taken before April 6 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,’ he added.[1]
Relieved
Richard Lambert, CEO at the National Landlords Association, commented that, ‘everyone will be relieved the Deregulation Act has sorted out the uncertainty created by the Superstrike and Charalambous judgements.’ He warns that, ‘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.’[2]
[1] http://www.chichester.co.uk/news/county-news-sussex-landlords-struggle-to-keep-up-with-changes-in-law-1-6809294