Nine Times The Deposit

YOU CAN’T GET 9 TIMES YOUR TENANCY DEPOSIT

Don’t believe anyone who says you can, they are telling porkies!

Deposit Dispute are leading experts in housing law. Our team comprises of lawyers, solicitors and barristers who have all mastered housing law. We have helped many, many tenants to secure the full value of their claim for their landlord’s breach of the tenancy deposit scheme. 80% of our claims are settled within 30 days of proceeding with the claim and without having to procced to court.

Our extensive court experience has confirmed that the Court is obligated to follow the compensatory rules set out in the Housing Act 2004. The maximum compensation that a Court can award is three times the value of the tenancy deposit excluding any awards for court fees and legal costs. A Court will never award more than three times the value of the deposit. So, if anyone tells you that you can get nine times compensation they are misleading you and we recommend that you report them to the legal ombudsman.

3 TIMES IS THE MAXIMUM

Section 214(1) of the Housing Act (HA) 2004 clearly establishes that a tenant can claim up to a maximum of three times and a minimum of one times the value of the tenancy deposit in compensation from the county court when the landlord fails to comply with either of the two requirements of the government’s tenancy deposit protection scheme.

Section 213 confirms the two requirements that the landlord must comply with are:

1)     The Initial Requirements

Section 213(3) HA 2004 requires a landlord to comply with the ‘initial requirements of the authorised scheme to secure the deposit within 30 days of having received the deposit. The essential requirement is to protect the deposit in a scheme.

2)     Prescribed Information

Section 213(6) HA 2004 requires a landlord to give ‘prescribed information’ about the deposit protection to the tenant (and any relevant person such as the person who paid the deposit on behalf of the tenant) in a prescribed form within 30 days of having received the deposit.

HOW THE CLAIM IS CALCULATED

The compensation is calculated in accordance to the number of consecutive replacement tenancies entered into between the landlord and tenant for the same property where the landlord has been in breach of either section 213(3) and or (6) of the Act, up to a maximum of 3 penalties.

Consecutive Replacement Tenancies

So, if the landlord fails in either of the two deposit requirements with the initial tenancy and there is a consecutive replacement tenancy, then unless the landlord complies with both requirements within the 30 days of the start of the new consecutive replacement tenancy, another penalty will apply. This will continue for every consecutive replacement tenancy at the same property until both requirements are met and up to a maximum of three penalties.

Deemed Compliance

If during the period of a tenancy (the original or replacement) the deposit is protected and the prescribed information is given and the deposit remains protected with the same scheme, then section 213(3) and 213(6) will be considered to be complied with for all subsequent replacement tenancies.

EFFECTIVE FROM

The government’s tenancy deposit scheme is effective from the 6th April 2007 in accordance to sections 212 to 215 of and Schedule 10 (as amended) to the HA 2004 for assured shorthold tenancies in England and Wales. Special provisions apply to tenancies granted before 6th April 20112 where there is deemed compliance with section 213(3) and 213(6) HA 2004 if the deposit was protected and prescribed information was given by 6th May 2012. Original fixed term tenancies granted before 6th April 2007 where a statutory periodic tenancy arises after that date there is deemed compliance of section 213(3) and 213(6) HA 2004 if the deposit is protected and prescribed information is provided by the 23rd June 2015.

Ian Duncan: MLaw

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