Penalties for not protecting the deposit

November 3, 2014

Penalties for not protecting the deposit

The tenant can apply for a Court order requiring the landlord to comply with the regulations and provide the prescribed information to the tenant. The Court can order the landlord to:

(a) repay the deposit, or
(b) pay the deposit into a scheme; and
(c) pay the tenant a sum equal to three times the deposit

all within fourteen days of the Court order.

In addition, while the landlord/agent is in breach of the regulations, any Section 21 notice issued will be invalid. This will in most cases preventing the landlord from recovering possession of the property if the tenant does not leave at the end of the tenancy.

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