It has been reported that approximately 300,000 landlords are facing a fine of around three times the amount of deposit taken for not putting tenant deposits into government backed schemes.
Since June 2015 ALL landlords can be fined for failing to protect tenant deposits, even those who took deposits BEFORE the law changed in 2007. This means that those landlords who’s old agreements are rolling month by month may not have been aware that those deposits also needed to be registered and those landlords are now most likely to be caught out.
Since April 2007 in England and Wales, landlords have been legally required to put deposits into one of the three approved schemes within 30 days of taking a deposit, and they should give their tenant detailed information about how it is protected and how to raise a dispute. These rules exist to protect tenants against unfair retention of deposits.
So, to avoid legal action and a potential fine, ensure those deposits are registered in one of the three following schemes:
Deposit Protection Service http://www.depositprotection.com/
My Deposits https://www.mydeposits.co.uk/landlords
The Tenancy Deposit Scheme (TDS) https://www.tds.gb.com/about-tds.html
There are different approved schemes for both Scotland and Northern Ireland but they operate in a similar way.