The Deposit Protection Scheme
About The Legislation
Did You Know?
An estimated 85% of all private sector tenancies require the tenant to pay a deposit.
Source: 2005/06 Survey of English Housing
As part of the Housing Act 2004 the Government has introduced tenancy deposit protection for all assured shorthold tenancies (ASTs) in England and Wales where a deposit is taken. From April 6th 2007, all deposits paid under an AST have had to be protected within 14 calendar days of receipt by the landlord.
The legislation aims to ensure that tenants who have paid a deposit to a landlord or letting agent and are entitled to receive all or part of it back at the end of that tenancy, actually get it.
Who Is Affected?
The legislation aims to ensure that tenants who have paid a deposit to a landlord or letting agent and are entitled to receive all or part of it back at the end of that tenancy, actually get it.
The legislation covers virtually all new AST contracts through which private landlords let property in England and Wales.
- resident landlords (those living in the property)
- landlords of properties with rent of over £25,000 a year
- company lets
- student accommodation let directly by universities or colleges.
Deposits taken before 6 April 2007 do not need to be protected by a scheme such as The DPS. However, as an existing tenancy is renewed and a landlord agrees a new fixed-term tenancy, the initial deposit taken must then be lodged with a tenancy deposit protection scheme.
Why Is Legislation Needed?
The return of a deposit at the end of a tenancy is by no means guaranteed. For example, in 2006/7:
- 64% were returned in full
- 20% were returned in part
- 16% were not returned at all
The reasons given by landlords for withholding some or all of a deposit were:
- damage to the property (26%)
- cleaning the property (30%)
- unpaid rent or bills (3%)
- other reasons (32%)
Over half (52%) of tenants who had some or all of their deposit withheld felt that it had been withheld unjustifiably. The new tenancy deposit protection schemes are working to ensure that deposits are returned on a fair basis to tenants, which is in every landlord and tenant's interests.
What Is The EPC Legislation For A Domestic Property?
1) From the 1st October 2008, all domestic landlords offering property for rent will be required to provide prospective tenants with an Energy Performance Certificate (EPC) prior to marketing the property.
Where the tenant is in place before the 1st of October and remains in residence, no EPC will be needed. If the rental agreement is renewed, again no EPC will be required. The requirement only kicks in when there is a new tenant. Landlords are then legally required to produce an EPC to show free of charge to all prospective tenants. The tenant who moves in must be given a copy of the EPC before the rental agreement is signed.
Where the landlord employs an agent, the agent can make arrangements for the EPC, but the responsibility for any breaches lies with the Landlord. Domestic EPC non-compliance will result in a fine of £200.
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