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Tenants Should Not Pay Price for Deposit Protection Confusion


Following a recent ruling of the Court of Appeal with regard to tenancy deposit protection, Mike Weatherley, the Conservative Member of Parliament for Hove and Portslade, is calling for clarification from the Government.

Mike recently wrote to his colleague Mark Prisk MP, Minister for Housing, about the court ruling and what the Government plans to do with regard to the matter. Having now received a response from the Department for Communities & Local Government, Mike is calling for Ministers to address the confusion that has followed from the ruling without delay.

The problem relates to the renewing of Tenancy Deposit Protection schemes that, after the Court of Appeal ruling, should be renewed as part of a periodic tenancy, inevitably putting up the cost of renting for tenants.

In the Minister’s response, Mark Prisk said: “…the decision could have implications for some tenancies where a deposit has been protected in an authorised scheme in relation to a tenancy begun after 6 April 2007 and the fixed term has expired, and the tenancy continues as a statutory periodic tenancy.” He added, “We are exploring whether new legislation is required to clarify the situation.”

Commenting, Mike said: “As a result of this ruling, there is a real danger that tenants will face extra costs for renting. Clarification is urgently needed so that landlords know exactly what their obligations are and that any consequences of the ruling that were not the intention of the legislation are cleared up. The last thing that anyone wants is for the costs of renting properties to go up.”