The Deregulation Act 2015 – Finally some respite for landlords

James Leach, Paralegal at Griffith Smith Farrington Webb LLP, discusses The Deregulation Act 2015 and why it provides some respite for landlords.

The spectre of tenancy deposits has been a constant headache for many landlords for a number of years. Successive Housing Acts brought about the basic rule that if a landlord lets a property under an assured shorthold tenancy (AST) after 6 April 2007 (when the legislation came into force) and receives a deposit, he must protect it within one of several Government-approved schemes and serve certain, prescribed information on the tenant within a strict timescale. The legislation also provided that should the fixed term expire and the AST rollover into a periodic AST, then because a new AST had essentially begun, the prescribed information had to be re-served. If the landlord failed to do so then he can face a fine of up to 3 times the value of the deposit, together with being precluded from using the accelerated possession mechanism, which is the quicker, less stressful and cheaper route to regain possession of their property.

Unfortunately, the waters became muddied by the now infamous Court of Appeal decision of Superstrike v Rodrigues, which held that a deposit taken before 6 April 2007 had to be registered and the prescribed information served if the AST rolled-over into a periodic AST after 6 April 2007. Plenty of landlords were caught out by the decision when they subsequently tried to evict their tenants, many also becoming subject to hefty fines.  

The recent passage of the Deregulation Act 2015 (“the 2015 Act”) provides some respite. The 2015 Act enables those landlords who had taken a deposit before 6 April 2007 but not registered it when the AST became periodic after 6 April 2007 to do so without facing sanction. However, they must do so within a short, 90-day window which began on the date the 2015 Act was passed (26 March 2015) and expires on 23 June 2015, or before the conclusion of accelerated possession proceedings, if earlier.

The 2015 Act also dispenses with the need to re-register a deposit and re-serve prescribed information if an AST granted after 6 April 2007 then becomes a periodic AST, providing the deposit requirements were initially complied with and the landlord and tenant remain the same.

The 2015 Act certainly provides relief, though some landlords would be wise to get their skates on if they are to take full advantage.

For more information contact Griffith Smith Farrington Webb LLP on 01273 324041 or enquiries@gsfwsolicitors.co.uk

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