Deposit Scheme changes & new penalities

Feb 14th 2012

In England and Wales, changes to the existing regulations are expected to be implemented in April this year. As previously reported, the major changes are the extension of the 14 day time limit for protection and notification to 30 days and changes to penalties for non-compliance.

New penalties (post-April 2012)

Failure to protect a deposit AND notify your tenant in the allotted time will prohibit the use of a Section 21 notice to end the tenancy.
A tenant may be awarded a penalty of 1 - 3 times the deposit at the judges discretion if you have failed to protect a deposit and serve the tenant with an appropriate notice within 30 days of receiving the deposit money. The tenant will be able to make a claim at any time up to six years after the deposit was received.

Feb 2014