Landlord fined three times the Deposit for failing to provide a leaflet - New Case Law

Case Ayannuga v Swindells. Whilst the Landlord had protected the Deposit and issued the Prescribed information the Landlords had not provided the Scheme Leaflets and was deemed to be in breech of Housing Act 2004 and was ordered to return the deposit plus pay a penalty equivalent to three times the deposit. Whilst the financial penalty was punitive the Landlords; losses have further been increased by the fact eviction was delayed and there were legal cost associated with the initial case and appeal
 
For the avoidance of doubt – If you receive a deposit and FAIL to provide a hard copy of the Deposit Scheme Leaflets you can (will) be fined and you invalidate your right to evict the Tenant using the Section 21 Notice – In addition the Tenant may counter claim, and delay or nullify eviction for section 8 claims relating to rent arrears.
 
Some landlords and letting agents believe providing the tenant with the link to a website to download scheme leaflets suffices – this is invalid and clearly contravenes PRESCRIBED INFORMATION) 2007 No. 797 in which section (b) states
  • Any information contained in a leaflet supplied by the scheme administrator to the Landlord which explains the operation of the provisions contained in sections 212 to 215 of, and Schedule 10 to the Act.

Summary of case ruling Ayannuga v Swindells

The Landlords had not provided the Scheme Leaflets and was deemed to be in breech of Housing Act 2004 and was ordered to return the deposit plus a penalty equivalent to three times the deposit. Whilst the financial penalty was punitive the Landlords losses have further been increased by the fact eviction was delayed and there were legal cost associated with the initial case and appeal – The deposit information to be provided as required by law is here

The deposit information to be provided as required by law is here