The Deregulation Act 2015 – Update

Further to previous articles on this subject, the Deregulation Act 2015 is now in force. So how will this affect landlords? Firstly, any deposits taken before 6th April 2007 which are now periodic must be protected by 23rd June or the landlord potentially faces a fine. If any landlords have tenancies which became periodic before 6th April 2007 they are not required to protect the deposit but will need to if they want to serve a Section 21 Notice. Secondly, it is no longer necessary to re-serve the Prescribed Information if a tenancy renews or goes periodic provided the tenants and premises remain the same and the deposit remains in the same scheme. The legislation has also clarified that reference to “the landlord” within the Prescribed Information includes those acting on behalf of the landlord, such as letting agents. Managing Director of the DPS, Julian Foster, says “We welcome these changes, which provide much needed clarity over the protection of older deposits. It brings an end to confusion over the management of deposits taken before the legislation came into force that have been retained by landlords past their original tenancy period. We’ll now help landlords and agents act in time to protect older deposits.”   There are further changes within the Act and it can be read in full on the DPS website.

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