Tenants Deposit Scheme Changes are Coming
The Deposit scheme was setup to safeguard tenants deposits but many landlords had been avoiding their obligations through a loophole which is now set to be closed.
The housing charity Shelter, recently secured changes to the tenancy deposit scheme, which will go further in protecting the millions of people who rent from private landlords.
The Localism Act 2011 has the changes within it which will mean landlords will no longer be able to avoid protecting a tenant’s deposit, and tenants will now be able to take legal action against any landlord who does not comply promptly with the new legislation.
Government backed tenancy deposit protection schemes were introduced in April 2007 but problems with rent deposits have remained a problem. In fact Shelter’s housing advice helpline has seen calls about rental deposits rise by over 40% this year.
These are seen as vital improvements to the original flawed legislation so that it can now achieve what it was created for.
It will now set out clear responsibilities and timescales for landlords to protect a tenants’ deposit and providing a quick and efficient way of resolving any deposit disputes.
Landlords will no longer be able to avoid their responsibility of registering the deposit up to and until a court case is brought against them, they will now have to register it immediately within the timeframe set and give the information to the tenant or face severe penalties.
See our article on Deposit schemes.