Q&As

A landlord failed to place a deposit for an assured shorthold tenancy (AST) into a tenancy deposit scheme (TDS) (and is consequently liable for a penalty). Did the landlord become liable for a second penalty when the original AST became a statutory periodic tenancy if he did not protect the deposit at that stage either?

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Published on LexisPSL on 18/01/2018

The following Property Q&A provides comprehensive and up to date legal information covering:

  • A landlord failed to place a deposit for an assured shorthold tenancy (AST) into a tenancy deposit scheme (TDS) (and is consequently liable for a penalty). Did the landlord become liable for a second penalty when the original AST became a statutory periodic tenancy if he did not protect the deposit at that stage either?

This Q&A raises the application of the Housing Act 2004 (HA 2004) in relation to assured shorthold tenancies (ASTs) under the Housing Act 1988 (HA 1988).

In summary, where a landlord receives a deposit in connection with an AST, two steps must be taken within 30 days. First, the initial requirements of an authorised scheme must be compiled with (HA 2004, s 213(3)). Second, certain prescribed information must be given to the tenant (HA 2004, s 213(5)(6)). The prescribed information is to be found in the Housing (Tenancy Deposits)(Prescribed Information Order) 2007, SI 2007/797.

A failure to do so restricts the right of the landlord to serve a notice under HA 1988, s 21 and gives the tenant the right to apply for an order for the return of the deposit or its payment into authorised scheme (HA 2004, s 214(3)) and the payment of a sum not less than one but not more than three times its value (HA 2004, s 214(4)).

When a fixed term AST comes to an end, ‘the tenant shall be entitled to remain in possession of the dwelling-

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