Which Possession Proceedings?

Dealing with Tenancy Deposits

It is important that any issues relating to your tenancy deposit are resolved BEFORE you serve your section 21 notice and before you issue proceedings for possession based on rent arrears.

The tenancy deposit regulations provide that

• All deposits paid in respect of assured shorthold tenancies must be protected with a government authorised scheme AND
• The tenant must be served with ‘prescribed information’,
• In both cases within 30 days of payment of the deposit money to the landlord or his agent (save in certain special situations)

If this is not done, then any section 21 notice served will be invalid AND the tenant can bring a claim against the landlord for a penalty of between one and three times the deposit sum.

This means that proceedings based on section 21 in most cases cannot be brought until the landlord has refunded the deposit money to the tenant (and is able to prove this).

Rules for older tenancies

If the deposit was paid and the tenancy became periodic before the deposit regulations came into force on 7 April 2007 (and no subsequent tenancy or renewal form has been given to the tenant), you will still need to protect the deposit before serving your section 21 notice. However, you have not done anything wrong by not protecting the deposit earlier and so will not be vulnerable to any financial penalty.

If the tenancy started before 7 April 2007 and became periodic after that date, you should have protected the deposit before 23 June 2015. If you did not, you will be in breach of the rules.

Rent arrears claims

Bringing proceedings based on rent arrears is also vulnerable to problems as tenants can counterclaim for the penalty for non-compliance with the regulations which will reduce the rent arrears due – and may even put the landlord in a position where he owes money to the tenant!

Landlord Law help

We have a ‘Deposit Protection Compliance Checker’ guide on Landlord Law which will guide you through all the options and what you need to do.  There is also a more detailed ‘Deposit Error Repair Kit’ which can be purchased.  Alternatively, you may want to take legal advice if you think you may be in breach of the regulations.

• Find out more about our telephone advice service  here.
• Find our Tenancy Deposit Compliance Checker  here
• Find out about our Deposit Error Repair Kit here.

If you are certain that you have complied with all the requirements of the tenancy deposit regulations, click next below.