LETTING & ESTATE AGENT

Judge Changes the Rules

Judge Changes the Rules

You may have heard about the Superstrike vs Rodrigues court case and we want to assure you at Martin & Co Crawley we have taken the appropriate steps to protect our landlords

The case concerns an Assured Shorthold Tenancy (AST) that had reverted to a periodic tenancy following the initial fixed term.  The judge stunned the entire industry by ruling that the periodic tenancy was a new tenancy and consequently the landlord had failed to protect the deposit as set out in the Housing Act, this meant the landlord was prevented from issuing a Section21 notice to obtain possession of their property.

Until the case last year it was assumed that a periodic tenancy could be an extension of the initial fixed term but now it is defined as a new tenancy.  The penalty for failing to serve the prescribed information about the deposit is a fine of up to three times the value of the deposit.

At Martin & Co Crawley, as part of our renewal procedure we have always issued the prescribed information to tenants who have entered into new fixed term agreements.  In light of the case we have taken steps to ensure all those tenancies that have reverted to a statutory periodic have been served the Prescribed Information in order to protect our landlords.