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 From 6 April 2007, all
landlords and letting agents taking deposits for assured
shorthold tenancies (ASTs) in England and Wales will be required
to join a Government-accredited tenancy deposit protection
scheme.
This will safeguard all the
deposits landlords and agents take.
To avoid disputes going to court,
each scheme will be supported by an alternative dispute
resolution service (ADR), whose aim is to make disputes faster
and cheaper to resolve.
The new legislation only applies
to new deposits paid for ASTs entered into on or after 6 April
2007. Any deposit paid before this date will not need to be
safeguarded by a tenancy deposit scheme.
However, if the tenant decides to
remain in their existing rented property beyond the initial
fixed term, the deposit will be affected by how the tenancy is
continued:
a) Periodic tenancy - if
the tenancy continues with no new agreement being created, the
deposit will not have to be safeguarded by a tenancy deposit
protection scheme.
b) Replacement tenancy - if
a new AST is created between the landlord and tenant for the
same property on substantially the same basis, the initial
deposit paid prior to 6 April 2007 will need tenancy deposit
protection.
Here at H.U.H PROPERTY we are
already part of The Deposit Protection Service (The DPS) a
government accredited custodial scheme run by Computershare
Investor Services Plc. We can take the burden off your shoulders
and handle the whole process if you opt for our Full Management
Package.
For further information on the
scheme visit
http://www.depositprotection.com
For landlords and letting
agents please visit the government site at
http://www.direct.gov.uk/en/TenancyDeposit/DG_066380
For tenants please visit
the government site at
http://www.direct.gov.uk/en/TenancyDeposit/DG_066373
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