Doncaster, England -- (SBWIRE) -- 05/18/2015 -- The Deregulation Act 2015 received Royal Assent on 26th March 2015 and will change various aspects of renting for Landlords and Letting Agents alike.
The Act has amended areas such as Tenancy Deposit Protection requirements and the Section 21Notice – the property owner's right to evict tenants at the end of their Assured Shorthold Tenancy (AST).
If a deposit laid for an AST before 6th April 2007 is still in holding as part of a statutory periodic tenancy – which again started before 6th April 2007 – the proprietor does not have to comply with the Tenancy Deposit Scheme. The deposit does have to have TDS protection in this situation if the proprietor wants to issue a Section 21 Notice. The deposit must also have protection if originally laid down before 6th April 2007 but the statutory periodic tenancy commenced after this date.
The added clauses to Section 21 include stricter regulations for the condition of the property before being able to invoke a Section 21 notice; for example, if a tenant has delivered a written complaints about the property that have been ignored or inadequately dealt with by the proprietor, it protects the tenants against 'retaliatory evictions'. The proprietor must also have provided an Energy Performance Certificate (EPC) prior to the tenants signing an agreement - the potential tenants should be aware of the energy efficiency of the property as part of the decision process, not once they are already settled.
The Legal Team has commented on these changes "It is equally important for both landlords and tenants to be aware of the laws and rights surrounding letting agreements before entering into a contract. Whilst the changes have provided an amount of protection for tenants against non-compliant landlords, it can also catch accommodating landlords out on formalities if they have housed the same tenants for a long period of time.
"The changes can trip up proprietors and cause problems with closing contracts and deposit returns amongst other things; this can be avoided with awareness of the correct laws and formalities. It is always advisable to seek guidance from a legal professional when the laws are updated to ensure you are well informed and to avoid unnecessary complications."
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