Since 6 April 2007 landlords who take a deposit from an assured shorthold tenant (AST) must protect the deposit in one of the ways prescribed in the Housing Act 2004. Failure to do so renders the landlord liable to return the deposit and pay additional compensation.
Crucially, this also raises the possibly of a landlord being unable to recover possession by using the notice only grounds, as set out in section 21 of the Housing Act 1988.
Increasingly it is apparent that landlords are learning the lesson that the deposit must be safely secured in accordance with the law. However a number of Court cases still continue to occur where landlords are not complying with their obligations.
If you need advice with regard to landlord or tenant issues email: robin@rrpaice.co.uk
RR Paice
