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As of April 6th 2007 all deposits taken by Landlords for Assured Shorthold Tenancies in England and Wales must be protected by a government approved tenancy deposit protection scheme. Landlords will be obliged by law to provide details to a tenant of the scheme used by them to protect the tenant’s deposit. Failure to provide this information will mean that the tenant can apply for a court order requiring the deposit to be protected or for the prescribed information to be given to him/her. If it is satisfied that the Landlord has failed to comply with the requirements of the Housing Act 2004 the court will order the Landlord to comply with these requirements and order that the landlord pay the tenants legal fees in relation to the application. At the same time the court order must order that the landlord pay an amount equivalent to three times the deposit to the tenant within 14 days and either repay the deposit to the tenant or protect it under an approved scheme.
If the scheme is not complied with the Landlord is not entitled to use a ‘notice only’ method of regaining possession (under Section 21 of the Housing Act 1988 as amended by the Housing Act 1998 ) from the tenant until the deposit has been protected under an approved scheme.
The above punishments and penalties will apply to each and every Assured Shorthold Tenancy and each and every deposit that is not protected.
Prospect Residential is registered with and recommends The Deposit Protection Service (The DPS) – Their service is funded entirely from the interest earned from the deposits held.