23rd
Jun 2013
The key issues presented by the case ruling
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FACT - If a deposit was received before 6 April 2007 and the periodic tenancy commenced after 6 April 2007, the deposit MUST be protected otherwise the tenant cannot be evicted using the section 21 process until such remedied.
Read PIMS Review of case -
SUBJECTIVE - The ramifications of this ruling imply that ALL FIXED TERM tenancies coming to an end create a NEW contract because a Statutory Periodic Tenancy arose ; so by default the deposit should treated as a new tenancy and the prescribed information requirements of deposit protection there after applies, ie re-issue prescribed information within 30 days or be fined and invalidate one’s right to evict using the section 21 (this would be a breach of question 7 court application form).
Read PIMS Review of case -
SUBJECTIVE - should prescribed Information be reissued
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Becareful what you read Some people are sending emails and selling fear and offering solutions which are premature and to be frank statements such as "
if you protect the deposit late you can't serve a section 21 notice" are incorrect for the localism Act 2011 introduced April 2012 included a revision to the 2004 Housing Act covering prevention of service of notice under section 21 of the Housing Act 1988.
This revised the Act to include ; no section 21 notice may be given in relation to the tenancy at a time when not being complied with.
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This means the breach could be remedied, issue a new Section 21 and there after proceed with eviction. more -
If there is no revision to this case ruling as is it could means landlords being forced to pay compensation for unlawful eviction and deposit penalties - but this would undermine the whole essence and spirit and section 10 of the 2004 Housing Act - so unlikely . see fines
If common sense were to prevail which is unlikely then Civil Proceedure rule 55 that governs eviction of Tenants Using the
Section 21 could be revised or retrospective ammendment to the Localism Act to include similar to
- Where any tenancy becomes a periodic after April 2007 provided such deposit is held in accordance with a deposit scheme the deposit remains protected the prescribed information remains valid.
Do not be panicked into a making a rash decision for this case ruling is so complicated not even the deposit schemes can provide an immediate answer and the case should NOT be taken out of context
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