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Andrew Luxton MRICS FARLA, Partner in charge of Stags Residential Lettings Department reports that following the recent Deregulation Act that came into law at the end of March, there is an impact on older tenancy deposits that were taken before the 6th April 2007 and are continuing on a periodic basis.
At the time there was no requirement to register the deposit in an approved scheme and the tenancy could continue on a periodic basis indefinitely. However, following the passing of the recent law you have until June 23rd to protect all deposits and register them with an approved scheme that were taken before the 6th April 2007.
Andrew Luxton stresses that whilst this will impact on only a small percentage of current tenancies, there are a number of deposits that are being held by agents and landlords that were taken before April 2007 that will now need to be registered. He welcomes the Deregulation Act because it primarily clarified the uncertainty created by the Superstrike case, following which landlords were required to provide prescribed information for every renewal tenancy, periodic or not. The act states now that as long as it has been provided validly on the initial tenancy it does not need to be given again in respect of replacement tenancies. Prescribed information is the information that landlords must by law make available to the tenant about the deposit protection scheme protecting their deposit and other specific details about the deposit and tenancy.
If you feel as a landlord you may be holding deposits illegally and require further advice then please contact your local Stags lettings office who will be happy to help.