Malcolm Dowden analyses the implications of Harvey on tenancy deposit schemes
Since 6 April 2007, all deposits (for rent up to £25,000 a year) taken by landlords and letting agents for assured shorthold tenancies in and , must be protected by a tenancy deposit protection scheme. Tenancy deposit schemes were introduced to address concerns that deposits—often equal to two or three months’ rent—were being retained by landlords even when there was no damage left behind by the tenant, or that tenants were able to recover deposits only by taking legal action which, given the relatively small sums involved, would not be cost effective. The schemes were intended to provide effective protection for tenants, and effective leverage against landlords.
What happens if the landlord fails to comply?
On the face of it, the remedies available against a landlord who fails to comply with the requirements of the scheme are severe, and ought to prompt compliance. Either the tenant or the party that agreed to pay the
