Landlord power can and will get Deposit Protection rules clarified

by Mark Alexander

7:38 AM, 19th June 2013
About 7 years ago

Landlord power can and will get Deposit Protection rules clarified

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Landlord power can and will get Deposit Protection rules clarified

Landlord power can and will get Deposit Protection rules clarifiedThe potential implications of the ruling that a Statutory Periodic Tenancy is a new tenancy, according to the Court of Appeal ruling in Superstrike Ltd vs Rodruigues, has reverberated around the industry at lightening speed. Every popular landlord forum, blog and Facebook group has carried articles and thousands have been motivated to express concern. Indeed, my own article had over 3,000 readers and 100 comments left within just one day.

My initial reaction was one of pure panic and terror for what the implications might be. However, with time I have come to realise that once the powers that be recognise the implications of not adding further clarity to the legislation, I suspect we will receive the clarity we need.

So what is the ideal outcome we should all be hoping for?

In my opinion it needs to be confirmed that once a deposit is protected, either in a custodial or by an insured scheme, than it remains protected until such time as it is unprotected. The roll-over to a new statutory periodic tenancy is deemed to be a create a new tenancy and is seamless in terms of paperwork. Therefore, the rollover of the deposit protection and the prescribed information needs to be equally seamless and to remain valid providing it was dealt with properly within 30 days of the original fixed term tenancy being created.

Anything else would be ludicrous in my opinion. For example, if the clarification is that it is necessary to re-serve prescribed information again when a new Statutory Periodic Tenancy is created then most landlords would have to re-serve notice monthly. This is because a statutory periodic term is the payment cycle of rent which is typically every month. Thus, a new statutory periodic tenancy is created with every payment.

There may be variations on my suggested theme but as I write this article I can not think of a more logical one.

One thing is for sure and that is WE NEED CLARITY.

The Deposit Protection Providers will, no doubt, be meeting with the law makers to explain the urgent need for this clarification. Remember, their business models are in jeopardy too if landlords and letting agents all decide to stop taking deposits and find alternatives. I suspect the Council of Mortgage lenders are worried too!

Landlords and letting agents must add pressure for clarity

We can’t just leave it to the Deposit Protection Schemes, we need to make our voices heard.

I thought about starting a petition but then I decided it would be better for the industry and the press to be able to read comments from landlords and letting agents about how strongly they feel about this.

This is YOUR opportunity to have YOUR say.

Please leave a comment below and encourage all other landlords and letting agents you know to do the same

 


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Comments

Gary Nock

22:11 PM, 1st July 2013
About 7 years ago

Do DPS do the same?

Mark Alexander

22:13 PM, 1st July 2013
About 7 years ago

Sorry Gary, I don't know about DPS but I don't think they do. my\deposits don't for sure as that's where mine are protected and they specifically state there is no need to do anything further when an AST goes periodic providing a deposit is protected and [prescribed information is served within 30 days of the receipt of the deposit. However, there is now uncertainty about whether that advice from my|deposits to their members has been correct. Despite this recent case I have not received further advice from my|deposits so I am assuming that I am still OK on their say so.

Paul Anderton

22:39 PM, 1st July 2013
About 7 years ago

no mark i don't because the prescribed information is the same and they still have it before the new certificate is served.

Mark Alexander

23:04 PM, 1st July 2013
About 7 years ago

That's always been my contention, if nothing has changed why should I re-serve PI. However, the counter argument and lack of clarity continues to disturb me. I am not going to change what I have always done unless a Court rules I have always done it wrong. If that happens I am screwed anyway so why change now?

Mark Alexander

22:35 PM, 5th July 2013
About 7 years ago

I have been given the "heads up" to expect a special announcement at the highest level next week on the uncertainties over deposit protection raised "Superstrike".

Gary Nock

17:42 PM, 11th July 2013
About 7 years ago

Read this latest post on Wise -Moves. Looks like agents details on prescribed information not enough now. Has to be landlords!!

Oh deep joy. Shelter and the PPI type Deposit Protection Vultures will love this.

http://news.wise-moves.co.uk/news/index.php?url=Landlord-details-should-go-on-Prescribed-Information-says-law-firm

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