The Court of Appeal has handed down a decision in the case of Charalambous v Ng on tenancy deposit protection.
Tenancies where deposits were taken before tenancy deposit legislation came into force in 2007, which then turned into periodic, also before the law came into force, will now have to protect deposits. These landlords were outside the original decision, but now must comply.
The Residential Landlords Association (RLA) said this will only impact few landlords, those that have a tenancy that falls under the following categories:
- A very long fixed term AST which started before 2007
- A periodic AST which started before 6th April 2007
- A continuation as a contractual run on following the end of the fixed term
In response the RLA has updated Section 21 forms on the website to make sure that they are up to date with the changes implemented by the recent ruling.
The RLA said this constant ‘shifting sands’ of tenancy deposit regulation is frustrating and highlights the dangers of passing legislation based on flawed data and analysis, and that unintended consequences can arise many years afterwards.
Some seven years after tenancy deposit legislation was enacted, new circumstances are being discovered and only causing headache for those trying to remain inside the law.