Amendments to the Housing Act 2004 took place on 6th April 2007, when Tenancy Deposit Protection (TDP) came into force on all new Assured Shorthold Tenancies and stated that a landlord may no longer hold a security deposit on behalf of their tenant.
The Landlord is responsible for ensuring:
- That the Tenant’s Security Deposit is forwarded to or insured by an approved scheme to be held for the term of the Tenancy
- That the Tenant or the person paying the deposit (eg: parent or guarantor) receives the relevant Prescribed Scheme Information
- This all must happen within 30 days of receipt of the deposit
At the present time this legislation does NOT apply to non-Housing Act tenancies, which are:
- Tenancies with an annual pure rent of over £100,000 or less than £1,000
- Tenancies with a resident landlord
- Tenancies where the property is a 2nd home and not the tenants main residence
- Company Tenancies
However, as all client money including security deposits needs to be held in a ring-fenced account, we are more than happy to securely hold the deposit for non-housing Act tenancies in our deposit account.
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