As of 6th April, the Department of Communities and Local Government (DCLG) will be making changes to the regulations around Tenancy Deposit Protection in England and Wales.
The changes to protection requirements and potential recriminations for non-compliance will come into force on 6 April 2012.
In summary, from 6th April 2012, the Localism Act makes the following changes to the law:
- The time limit for protecting a deposit and providing the required information to the tenant will be extended to 30 days (as opposed to the current 14 days) from the date of receipt
- If the landlord fails to comply with the legislation, the court will have discretion as to the amount of the penalty payment which will be between one and three times the amount of the deposit
- The penalty will be payable even if the landlord complies with the scheme requirements before the hearing of the tenant’s claim
- The tenant will be able to apply to the Court for a penalty payment even if the tenancy has ended
- If the landlord fails to comply with the legislation within the given time period he will lose the right to serve a Section 21 Notice unless the deposit has been returned in full (or with agreed deductions) or following the tenant’s claim being decided, withdrawn or settled