A recent case in the Court of Appeal (Charalambous v. Ng) decided on the 16 December 2014 has clarified that a landlord is precluded from serving a Notice Seeking Possession under Section 21 of the Housing Act 1988 where the tenant's deposit had not been paid into an authorised scheme notwithstanding the fact that when the deposit was originally paid there had been no obligation to pay it into an authorised scheme. The lesson for landlords is that if you have any deposits which were paid by tenants before statutory regulation of tenancy deposits was introduced in April 2007, those deposits must nonetheless be paid into an authorised scheme. If they are not you will not be able to serve a Section 21 Notice seeking possession for as long as the deposit is not being held in accordance with an authorised scheme. For further information contact Nick Lambert on 0114 224 2036 or email [email protected]
Old Tenancy Deposits
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