Rent Deposit Reform

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Rent Deposit Reform

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The law on the protection of residential rent deposits has been weakened by recent court decisions. The law states that a landlord that takes a rent deposit must place it into a tenancy deposit scheme and provide the tenant with the prescribed statutory information within 14 days. Failure to do so can result in the landlord having to pay the tenant three times the amount of the deposit and unable to obtain a possession order at court. However, the courts have held that so long as the landlord protects the deposit and gives the prescribed information "by the time of the possession hearing" the landlord will not be liable for the deposit fine and can still get a possession order. Landlords are disregarding the law and the Government should pass an amendment to the legislation.

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