Protecting in a Scheme Late - Warning Update July 2013

 

Protect the Deposit late in a scheme AND you MUST issue the details about how their deposit is protected (including the Prescribed Information) prior to the service of ANY new Section 21 Notice
 

Warning Update July 2013 - Whilst Judges are granting possessions where the deposit has been protected late we are aware of appeals being upheld; ruling protecting the deposit late invalidates the right to evict us the Section 21 Notice. This appears contrary to revisions contained within the Localism Act - We have no case law to cite at present - purely Judges reading of law [one agrees one not]

 
Localism Act revisions to 2004 Housing Act - Section 215 Sanctions for non-compliance
 
Now termed as "prevention of service of notice under section 21 of the Housing Act 1988"
 
  • (1)If a tenancy deposit has been paid in connection with a shorthold tenancy, no section 21 notice may be given in relation to the tenancy at a time when—
  • (a) new "Subject to subsection (2A)" the deposit is not being held in accordance with an authorised scheme, or
The operative being NOT being held;- so once complied with ]in a scheme prescribed information provided] should imply compliant so therefore eligible to use the section 21. Otherwise why are the shemes accepting the monies being lodged after 30 days   - see Localism Act revisions
 
 
We are dealing with one particular case where the Tenant has refused to accept the return of the deposit hence the landlord had little choice but to protect in a scheme.

We have written to the courts [on behalf of the member] requesting reinstatement of the possession on the point the intent of the law was not to relinquish the right to evict and that the intent was remedy and mandatory fines compensate the tenant for non compliance
 
 
Until the high court appeal rules, this tenancy reverts to an Assured Tenancy and the Landlord has lost the right to evict using a Section 21 Notice.

Should you have failed to comply with deposit protection within the 30 days period it may be wiser to return the deposit in full - We accept each case is unique so please call your members help line