Factsheet 24b - Tenancy Deposit Protection - statutory information requirements

Tenancy Deposit Protection - statutory information requirements

Introduction:

In the first Factsheet of this series on tenancy deposits (Factsheet No. 24) we provided an overview of the legal requirements for tenancy deposit protection under the Housing Act 2004 as amended by Localism Act 2011

In summary, the provisions require that any form of tenancy deposit, or similar money that is taken at the beginning of an assured shorthold tenancy (AST) on or after 6th April 2007 (or subsequent renewals of tenancies agreed prior to that date) will be subject to the Government’s Tenancy Deposit Protection (TDP) scheme, whether it is called a ‘deposit’ or not.    

The Act only applies where money, either cash or its associated forms, such as a cheque or a banker’s draft, is passed to the landlord or his agent from either the tenant or a third party.  Third party guarantees or ‘promises to pay’ are not deposits for the purposes of the Act and therefore may continue to be used. 

For tenancies where such deposits are accepted by either landlord or agent, the following provisions will apply:

  • The deposit will be required to be protected within one of the statutory schemes within 30 days of receipt.
  • Landlords and agents will be required to operate strictly according to the scheme rules as amended by the Localism Act 2011 and the Deregulation Act 2015.
  • Tenants and others shall be furnished with prescribed information within 30 days of accepting the deposit
  • The Deregulation Act 2015 has made amendments to requirements for re-protecting deposits and re-issuing prescribed information after 6th April 2007 where the tenancy has been renewed or become statutory periodic after that date.  See Factsheet No.24 for detailed requirements.

Infringement of any of these three requirements may lead to onerous penalties on the landlord or agent. These sanctions are detailed in Factsheet No.24. 

Statutory Information Requirements for TDP:

One of the key aspects of the TDP legislation is that the landlord or ‘person accepting the deposit’ shall furnish the tenant with certain prescribed information within 30 days of receiving the deposit.  This information must be provided.  Failure to provide the correct information will mean that severe penalties could apply to the tenancy. 

The general requirement to supply information is contained within section 213 of the Housing Act 2004 as amended by the Localism Act 2011 and detailed further within the Housing (Tenancy Deposits)(Prescribed Information) Order 2007  (SI 2007, No.797).  

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