Landlord is fined for not using Tenants Deposit Scheme

Back to news 26 June 2009

A recent case in the Brentford County Court is a timely reminder for residential landlords to check where their tenant’s deposits are held, writes Stuart Bailey Director of Thomas Guise Solicitors. Since April 2007 residential deposits should be held with a tenant’s deposit scheme. This case concerned a tenant who paid a deposit to the landlord in November 2005. The tenancy was renewed in November 2007 but the deposit was not transferred to a tenant’s deposit scheme. The landlord brought proceedings because of rent arrears. However the tenant counter claimed because the deposit had not been protected. The Judge found that the landlord was obliged to put the deposit in a deposit scheme in accordance with the rules, and was fined three times the deposit. Landlords should be advised that if they do renew their tenancies they must consider putting the existing deposits on a deposit scheme, otherwise they may be liable to a fine. For further information on this case please contact Stuart Bailey at Thomas Guise Solicitors, or if you are a landlord and have concerns in respect of your deposit then please contact Kate Francis at Waterfords Estate Agents.