Landlords urged not to ignore amnesty
The Government is currently running a 90-day amnesty for buy-to-let investors who have so far failed to place the deposits in an official scheme.
Once the deadline is passed, landlords who have not made the necessary arrangements will be liable for fines which are calculated at three times the initial deposit.
With the average tenant putting down a sum of £1,200, the penalty is likely to be considerable in many cases.
The amnesty is being run because it’s thought as many as a third of the 1.5 million private landlords in England and Wales have yet to register with a deposit protection service.
This is despite the fact that this became a legal requirement under laws that first came into force eight years ago.
Richard Lambert, of the National Landlords Association, said: “There are now a large number of deposits that need protecting despite not previously needing to be, and it’s likely that many landlords won’t even be aware of what they need to do," he said.
“Landlords who still hold a deposit should protect it if they haven't already done so, which will ensure that you can legally regain possession of a property [if you need to].”
The legislation does not apply in Scotland or affect the likes of university lets or licence agreements.
Our team of lawyers is experienced in dealing with all aspects of Landlord and Tenant law and can advise on the deposit amnesty. For more information on how Royds can assist with landlord and tenant disputes, please contact Chris Rodda or Jacinta Conway or visit our website.