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Deregulation Bill Given Royal Approval


Thursday, April 2, 2015
Deregulation Bill Given Royal Approval

Deregulation Bill Given Royal Approval

Deregulation Bill Receives Royal Assent

The controversial Deregulation bill may have received Royal Assent but it needs a commencement order to enable the legislation to be brought into force, and the delay will allow landlords enough time to get their rental properties up to the required standards and ensure that they will be compliant with the new laws regarding both deposit protection and revenge tenant eviction.

The amended Deregulation Bill contains changes to tenant deposit protection (TDP) legislation, which has been lobbied for by the National Landlords Association (NLA), to correct some of the legal issues created by the landmark Superstrike and Charalambous decisions which were deemed to impose unreasonable duties on landlords with tenancies which pre-dated Tenancy Deposit Protection rules.

The tenancy deposit rules require tenancy deposits taken by landlords for tenancies commencing prior to April 2007, where the tenancy has become periodic after that date, to be protected and the prescribed information must be served within 90 days. The deposit will then be treated as if it had always been protected.

Deposits taken from tenants after April 2007, that were protected with the correct prescribed information and have been served at some stage during the initial tenancy, will be treated as if the prescribed information had been served on every renewal or whenever a statutory periodic tenancy arose.

Tenancy deposits taken before April 2007, which became periodic before that date must be protected or the money must be returned to the tenant before a section 21 notice can be served.

Landlords will not be liable for any financial penalty for non-protection of the tenancy deposit.

Prescribed information rules have also been amended to allow for letting agents’ details to be provided instead of including the landlords’ personal details, where the agent is dealing with the deposit.

The 90-day prescribed information period provides a chance for all private rented sector landlords and letting agents to standardise their practices regarding the correct procedures for handling tenancy deposits.

The amendments made to the Deregulation Bill does clear up some of the confusion surrounding tenancy deposit protection, however, the bill also makes it illegal for landlords and letting agents to carry out so-called revenge evictions.

Protection that may have previously been granted to landlords could be tested by dishonest tenants using the new legislation, in an attempt to defend against legitimate possession proceedings being brought by the landlord or their appointed letting agents; possibly by the tenant intentionally causing damage to properties then claiming that repairs are outstanding.

With a window of opportunity until the legislation comes into force, now is the time for all landlords to ensure that their rental properties and tenancy deposit handling procedures will be compliant with the new laws regarding both deposit protection and to avoid so called revenge tenant evictions.


This was written by Mike Clarke. Posted on at 1:10 pm. Filed under Eviction. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.