Get in Touch Menu

Tenancy deposit advice for residential landlords

04 February 2014

Category: Press releases, Commercial, Dispute resolution

Since the introduction of tenancy deposit protection by the Housing Act on 6 April 2007, landlords should be aware that when a deposit is received from a tenant at the start of any new assured shorthold tenancy it must be lodged with an accredited tenancy deposit scheme and certain prescribed information must be served on the tenant.

A breach of the Act may invalidate a section 21 notice and prevent a landlord from being able to recover possession. The court may also order them to return the deposit and pay damages equal to between one and three times the amount of the deposit.

In the recent case of Superstrike v Rodrigues the Court of Appeal ruled that a statutory periodic tenancy constitutes a new tenancy and is not considered to be a simple continuation of the tenant’s previous status. The decision in this case may be appealed and interested organisations are lobbying the government to legislate to prevent confusion and damage.

In the meantime there is speculation as to the impact this decision will have where the tenancy is protected and has been renewed, whether by a new fixed term or a statutory periodic tenancy. There is a risk that a landlord who has either not protected the deposit (relating to a pre-April 2007 tenancy) or, has a protected deposit but has not served the prescribed information on the renewal of the tenancy or the creation of a statutory periodic tenancy, could be in breach of the Act.

Where the deposit is currently protected and a new fixed term is granted or a statutory periodic tenancy arises, we recommend that in order to ensure full compliance with the implications of the Superstrike decision, you should re-serve the prescribed information within 30 days of each renewal or the creation of a statutory periodic tenancy.

There are potential implications and risks which we would be happy to discuss with you to help you decide which route to follow. 

Disclaimer: All legal information is correct at the time of publication but please be aware that laws may change over time. This article contains general legal information but should not be relied upon as legal advice. Please seek professional legal advice about your specific situation - contact us; we’d be delighted to help.
Nick Southwell BA (Hons)
View profile
Nick Southwell, litigator at Willans LLP
Related services
Share this article
Resources to help

Related articles

Unearthing the implicit duty of cooperation in commercial contracts


In the world of business, contracts are the bedrock upon which deals are built. These carefully crafted documents are a testament to the mutual understanding between parties, outlining their respective…

Richard Holland BA (Hons)
Senior associate, solicitor

Why sole director companies should check articles of association


A recent case has highlighted the importance of ensuring a company is incorporated with carefully drafted articles of association, if there is only one director. All limited companies must have…

Helen Howes LLM
Senior associate, solicitor

SCCs: New rules governing cross-border data transfers and data exchanges from the EU and EEA

GDPR & data protection

This September brings change to the use of standard contractual clauses (SCCs) governing data transfers from the EU and EEA. In June this year, the European Commission published two sets…

Kym Fletcher LLB (Hons) Euro
Consultant, solicitor
Contact us