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Bye bye Superstrike

The Deregulation Act 2015 received Royal Assent on 26 March, with amendments related to tenancy deposits becoming effective immediately.

This is good news for landlords as it removed the consequences of the notorious Superstrike v. Rodrigues case, and lessen the potential impact of Charalambous v. Ng.

The situation is now as follows.

For tenancy deposits received on or after the 6 April 2007:

Once the deposits has been protected and the prescribed information given, there is no longer need to give the prescribed information again when a statutory periodic AST is created or the tenancy renewed as long as the deposit continues to be held by the same deposit scheme.

This is treated as having affect since 6 April 2007 so landlords are also fine if they had no given prescribed information again since that date.

For tenancy deposits received before 6 April 2007:

If the latest tenancy (including a statutory periodic AST) was also created before that date landlords are not required to protect the deposit, and are therefore no longer at risk to be sued for the non-compliance penalty (a potential threat since Charambalous v. Ng).
However, the deposit must be protected or refunded before a valid section 21 notice may be served.

If a fixed term AST started before that date and was replaced by a statutory periodic tenancy after that date, and that tenancy is still in existence, landlords are given a 90 day grace period—until 23 June—to protect the deposit and give the prescribed information. Thereafter it will be really too late.

Lastly, an amendment to the Housing (Tenancy Deposits) (Prescribed Information) Order 2007 now allows for a letting agent’s details to be given as part of the prescribed information instead of the landlord’s details.