Online estate agent PurpleBricks has recently found itself in the headlines with a costly problem about how it communicated to tenants.
The company’s lettings arm had not properly explained to tenants that their deposits had been put in a protection scheme, leaving it with a predicted £3.6m of potential claims.
Sophie Kerry, solicitor in Wake Smith’s litigation team, looks at what the rules are.
PurpleBricks had failed to provide Tenants with the ‘Prescribed Information’ following investment of their deposit into a Deposit Protection Scheme since 2012.
- If an Assured Shorthold Tenancy began after 6th April 2007, the Landlord must put a Tenant’s deposit into a government-approved tenancy deposit scheme within 30 days.
- The Landlord must also provide the Tenant with ‘Prescribed Information’ within 30 days of receipt of the deposit.
- If the deposit is not protected and the prescribed information provided, the Tenant can apply to the local county court.
- The court could then order for the Landlord to repay the deposit and they could also order that the Landlord pays up to 3 times the deposit within 14 days of making the order.
Sophie added: “Despite many Landlords instructing Agents to deal with their rental properties and their Tenants, it is ultimately the Landlords responsibility to ensure that they are complying with current guidelines and legislation.
“This is just one of the obligations that a residential Landlord is expected to fulfill.
“It is especially important that all relevant legislation and guidelines have been complied with prior to serving any Notices to legally gain possession of a rental property.”
The guidance and legislation are constantly changing. For the most up to date advice and correct procedures when issuing documentation for possession of a residential property, please contact our Litigation Team.
For further advice contact Sophie Kerry on 0114 224 2036.
