With less than a week to go until the June deadline, by which time all landlords must comply with the new tenancy deposits regulation, both ARLA and The Deposit Protection Service have issued final reminders.
Although tenancy deposit protection schemes have been in use since 6 April 2007, tenancies that were agreed before that date, and which have continued on a period-by-period basis, used to be thought exempt.
However, the infamous Superstrike vs Rodrigues court ruling of 2013 muddied the waters. In March this year, the Deregulation Act passed into law, clearing up the confusion caused by the legal loophole. The government granted landlords 90 days to get everything in order.
By 23 June, all tenancies must be protected under one of the government authorised schemes. Failure to comply with the new regulations by the deadline could lead to sanctions which include a potential claim by the tenant for compensation of up to three times the amount of the deposit paid, and an inability to bring a tenancy to an end through a Section 21 notice.
It is estimated that up to 330,000 tenancies could be affected. Research from Mydeposits, one of the approved schemes, suggests that 48% of landlords struggle to keep up with changes in legislation, leading to concern that there may still be a number of landlords who will fail to comply.