- House Prices
Calling all landlords: make sure your tenancy deposits are registered with a new national scheme as soon as possible or you could face a hefty fine.
Due to the newly introduced Deregulation Act, all deposits received before April 6, 2007, have to be registered with a Government approved scheme by June 23 so it is essential for landlords to act now to ensure they comply.
The Housing Act 2006 initially introduced the requirement to register deposits from 2007, and the new Deregulation Act now requires deposits to be registered for those tenancies which started prior to April 6, 2007.
Nock Deighton’s lettings and property management director, Dawn Clarke, said landlords had largely welcomed the initiative.
“The main aim of the legislation is to ensure tenants’ deposits are protected, and fair adjudications can be made at the end of each tenancy if deductions are proposed,” she said.
“It means that both parties know where they stand, which is good news for everyone. However, the most important message for landlords now, is to make sure they register their deposits before the deadline of June 23.
“If they miss the deadline, landlords could be fined up to three times the value of the deposit, and restrictions can be placed on regaining possession of their property at the end of the lease.
“The stakes are high, so it should be a major priority for every landlord to make sure they comply with this new legislation.”
There is a handy summary on the TDS website to check whether you need to take action, which can be viewed by clicking here.
Nock Deighton manages more than 600 homes across Shropshire and Kidderminster, and Dawn said demand was soaring for rental properties.
She added: “We have waiting lists for people looking to rent a property in Shropshire, so are advising investors to get in touch if they have a property which may be suitable for letting.
“We also have an excellent track record of matching property for sale with potential investors, because the market is so positive at the moment.”
For more information contact Dawn and her team on 01952 290163.