23 Mar 2007 - TENANCY DEPOSIT PROTECTION LEGISLATION

LANDLORDS, ARE YOU AWARE OF THE CHANGES?
New legislation has been introduced to protect tenant's deposits.

From 6th April 2007 all tenancy deposits taken by landlords/agents in relation to ASTs in England and Wales must be proteced and covered by one of the Tenancy Deposit Protection schemes. 

There are 2 types of scheme:

A Custodial Scheme where all tenant's deposits are paid into the scheme.  This service is free to use.

The Insurance-backed Scheme where there will be a cost for the landlord/agent to belong.  This insurance premium has been set by the scheme administrator.

All deposits taken from tenants must be covered by one of these schemes and tenants must be informed of which scheme the landlord is using.

Any existing deposits already in place before the 6th April 2007, or which become periodic after that date, do not come under the new regime.  Should an existing AST be renewed for a further fixed term, this will come under the new legislation.

Should you require any information, there are various websites explaining the procedure and we would be delighted to advise you of these.