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Tenancy Deposits

Does the tenancy deposit protection legislation apply to statutory periodic tenancies?

Since our earlier blog on this issue there has now been some guidance on what Landlords should do about the deposit in circumstances where a fixed-term tenancy comes to an end and the tenancy continues on a statutory periodic tenancy.

Following the recent case of Gardner v McCusker it now seems all statutory periodic tenancies will be seen as a “new” tenancy and therefore the deposit protection provisions must be complied with not only at the start of the fixed-term tenancy but again at the start of the statutory periodic tenancy.  This means the deposit must be re-registered and the prescribed information must be re-served at the start of the statutory periodic tenancy.

The next issue however is whether if, for example, there is a monthly statutory periodic tenancy whether the deposit protection provisions have to be followed at the start of every month.  This issue has not been addressed and it would therefore probably be wise for Landlords to at least re-serve the prescribed information at the start of every month.

Landlords who fail to comply with the deposit protection provisions may end up being ordered by the Court to return the deposit and pay the Tenant up to three times the amount of the deposit by way of compensation.  It is therefore important for Landlords to ensure they comply with the deposit protection provisions.

There is likely to be reform in this area.  Please check our website for updates.

If you would like more advice on tenancy deposits and landlord and tenant issues please contact us.

Jacqueline Penfold
Jacqueline Penfold
Tina Ripley
Tina Ripley