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Tenants deposits to be protected under new laws
Philip McCabe
Philip McCabe
Landlords must have arrangements in place to safeguard deposits from tenants under new laws which come into effect on 6 April.
Failure to do so could result in financial penalties and force the landlord to pay the tenant up to three times the amount of the deposit paid.
The Government scheme has been set up to give tenants more rights to reclaim all or part of the deposit they paid when their tenancy started.
“The new legislation is also important for landlords when it comes to gaining possession of their property when the tenancy has expired,” says Philip McCabe, solicitor with Charles Lucas & Marshall and a specialist in property disputes.
“If they fail to follow the new rules then it will be more difficult for them to get an eviction order and gain possession of their property.”
Landlords must now safeguard deposits within 14 days of receiving it - either by paying it into a recognised scheme for a custodian to hold until it is due to be returned or they can retain the deposit themselves and pay a premium to an insurer.
Figures show that the return of deposits paid at the end of tenancies are by no means guaranteed. The majority are returned in full but around 20 per cent are only partly returned and 10 per cent are not returned at all.
“Nearly one in five tenants who had some or all of their deposit withheld felt it was unjustified,” says Philip McCabe.
For further information please contact Philip McCabe on 01793 511055 or philip.mccabe@clmlaw.co.uk
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