New legislation relating to tenant’s security deposits

Local letting agent, YOUR MOVE is responding to the introduction of new lettings legislation, which became effective on 6 April 2007, which governs the way a Tenant’s Security Deposit must be held and protected, as well as how a Security Deposit is disbursed at termination of the Tenancy.

It will apply to all new tenancies and any existing tenancies where there is a lease renewal effective from 6 April 2007.

Valerie Bannister, National Property Manager for YOUR MOVE Lettings explained: “There are three approved schemes, and YOUR MOVE has subscribed to be a Member of the Tenancy Deposit Scheme which is administered by The Dispute Service Limited.

“YOUR MOVE is absorbing the subscription charges and administration costs applied by membership into The Dispute Service Limited. So all YOUR MOVE Landlords will have automatic free entry into the Scheme. It means they will not have to worry about completing any paperwork or being involved in any onerous administration, as we will do this for them.

“One important aspect of this new Legislation is that the Tenant must be notified within 14 days of the commencement of the Tenancy that their Security Deposit is protected by The Dispute Service Limited. Failure to do this within the prescribed timescale means that serious penalties can be applied to the Landlord and Agent. So good news – YOUR MOVE will automatically provide the Tenant with the relevant information in accordance with the statute.

“Another significant change to both the Landlord and Tenant contained within this new Legislation is the manner in which the settlement of any deductions from a Security Deposit at termination of the Tenancy is agreed.

“This new Legislation applies to Assured Shorthold Tenancies only as these are the most common form of Tenancy Agreement.

“There are an increasing number of Company Lets and Non-Housing Act Tenancy Agreements where YOUR MOVE believe it is important that all Landlords and Tenants have access to the same Dispute Resolution Service free of charge, should there be a dispute at the termination of a Tenancy. So more good news, The Dispute Service Limited is the only Scheme Provider who is prepared to assist with an adjudication service for these types of Tenancies.”