10-17-2008
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An important decision for landlords - one of the first cases concerning the Tenancy Deposit Protection Scheme (TDPS), which came into effect on 6 April 2007, was decided recently in a Sheffield County Court.
The findings of the first instance judge were overturned on appeal to find in favour of the landlord, (Harvey v Bamforth).
The landlord in question had properly placed his tenant’s deposit in a tenancy deposit scheme however he had failed to properly inform the tenant about the details of the scheme within the statutory 14 days time limit, as prescribed by the Housing (Tenancy Deposits) (Prescribed Information) Order 2007.
The circuit judge ruled that the failure to provide information on time did not mean that the penalty was payable because the information was still provided before the tenant submitted his application to the scheme.
The judgment clarified that provided the landlord supplies the certificate and other prescribed information without delays outside the 14-day statutory limit, he will not breach the Housing Act 2004.
The TDPS scheme was introduced to deter unreasonable landlords from not returning the deposit, and similary, preventing tenants from living out their deposit.
If there is a dispute about the return of the deposit, it is dealt with by the Independent Housing Ombudsman.
Failure to properly protect deposits means that the landlord will be liable to return the deposit to the tenant and a court can order the landlord to pay up to three times the deposit amount if not paid up at the date of any court order.
Defaulting landlords will not be able to regain possession of their properties by the serving of a Section 21 Notice, or to enforce the terms of the tenancy agreement.