Posted by Jacqui Walton, Paralegal (Senior)
Agents beware: the importance of protecting tenancy deposits
Last week the Insolvency Service announced the disqualification of Jane Hipkin Russell of Frinton-on-Sea, Essex, an estate agent who had failed to comply with her obligation to protect tenants’ deposits.
Between 2017 and 2018 Russell failed to pay a total of £20,000 into Government approved deposit protection schemes. This has led to Russell’s company entering liquidation, and Russell herself being banned from acting as director, or having involvement with the formation or management of a company until 2025.
Agents should be aware that the obligation on landlords of assured shorthold tenants to protect tenancy deposits and comply with the requirements of an authorised tenancy deposit scheme within the prescribed timescale under Section 213 of the Housing Act 2004 extends to them when acting on a landlord’s behalf. It is clearly not an obligation to be taken lightly.
If you would like advice as to your obligations as a landlord or letting agent please contact our Property Disputes team on:
01225 730 137 Email us