If a landlord or his/her/its representative fails to register a tenant’s deposit correctly, there are rules in place which the courts will follow to cover such eventualities.
Section 214(1) of the Housing Act 2004 states that where a tenancy deposit has been paid in connection with an assured shorthold tenancy, on or after 6 April 2007, the tenant or any relevant person (defined by section 213(10)) may make an application in the county court for the landlord’s failure to register the deposit correctly.
Once it has been established that the tenancy deposit was not correctly registered and the landlord has fallen foul of the rules associated with deposits, the court must, as it thinks fit, either –
a) Order the person who appears to the court to be holding the deposit to repay it to the applicant, or
b) Order the person to pay the deposit into the designated account held by the scheme administrator under an authorised custodial scheme, within the period of 14 days beginning with the date of the making of the order
(3A) The court may order the person who appears to the court to be holding the deposit to repay all or part of it to the applicant within the period of 14 days beginning with the date of the making of the order.
(4) the court must order the landlord to pay to the applicant a sum of money not less than the amount of the deposit and not more than three times the amount of the deposit within the period of 14 days beginning with the date of the making of the order.
This article has been written on behalf of Tenant Deposit Advice Ltd and is correct at the time of publication on 19 May 2017. Should you require advise concerning tenancy deposits, please feel free to contact us.
IMPORTANT: Please check the date of the post above – remember, if it is an old post, the law may have changed since it was written.
You should always get independent legal advice before taking any action.