Full deposit not protected

Sonnenamy

[FONT=&quot]I took an assured short hold tenancy in a house in Feb 2011 and paid £1400 deposit to the letting agent.[/FONT]

[FONT=&quot]I always paid the rent on time, gave proper notice and vacated the property in Feb 2014.[/FONT]

[FONT=&quot]I am in disagreement with the landlord over deposit deductions so tried to refer to the deposit dispute resolution service. They informed me that only £1200 is protected and they advised me to seek legal advice. I have contacted the letting agent and asked them to confirm, I am waiting their response.[/FONT]

[FONT=&quot]I am aware that if a deposit is not protected then a tenant may be able to claim compensation of up to 3 times the amount. As only part of my deposit was protected could the compensation apply to my situation? If I decide to pursue I will get legal advice but would appreciate any advice or input before incurring any expenses.[/FONT]

theGrinch

have you checked the paperwork to confirm that the £200 wasnt for signing TA, inventory, credit checks or admin?

Sonnenamy

[FONT=&quot]I have double checked all the paperwork. I have a breakdown of fees from the letting agent which shows £1400 for a deposit. The contract also refers to £1400.[/FONT]

G_M

If the receipt you were given and the tenancy agreement both clearly state the deposit is 1400, and only 1200 is protected, you can make a claim.

You would be unlikely to get the full 3 times penalty (since most of the deposit was protected) but the court would have to award you the deposit itself (less any valid deductions) plus at least 1 times the deposit, or more ("up to" 3 times).

* Deposits (payment, protection and return)

jjlandlord

Arguably, if only £200 is not protected then your claim would be for at most 3x £200...

G_M

jjlandlord wrote: »

Arguably, if only £200 is not protected then your claim would be for at most 3x £200...

Indeed. Arguably.

Though the Localism Act says " “not less than the amount of the deposit and not more than.....”.

It does not differentiate between that proportion of the deposit which protected Vs that which is not.

And courts can be so fickle!

jjlandlord

G_M wrote: »

Though the Localism Act says " “not less than the amount of the deposit and not more than.....”.

It does not differentiate between that proportion of the deposit which protected Vs that which is not.

And courts can be so fickle!

Yes, for sure.
They may indeed consider that the deposit such that even not protecting a penny would result in the full force of the penalty.

The more I think about it, the more I'm inclined to think that this would be the correct way to follow the letter of the law, actually.

Sonnenamy

Thank you for your replies, this is very helpful. Particularly the quote from the Localism Act as I could not find anything so clear in the original Act.

If the penalties don't apply where only part of the deposit has been protected what is to stop a rouge landlord only registering a nominal amount? Would the S21 penalty still apply? It is not applicable in my case as I have moved out but is this a potential loophole?

anselld

Have you checked what the contract states about checkout inventory fees? Sometimes these are contracted to the T so the agent deducts the fee up front on the grounds that the T is contractually liable. I don't know if it complies with Localism, but it still happens.

theartfullodger

jjlandlord wrote: »

Arguably, if only £200 is not protected then your claim would be for at most 3x £200...

In the saloon bar at the "Landlord & HCEO" perhaps: AFAIK legislation only refers to "deposit" not "the bit he didn't protect".

£5 to an agreed housing charity if anyone can find a case where penalty awarded was only for multiple of bit-not-protected. & less than 1x deposit.

Cheers!

Sonnenamy

[FONT=&quot]Thanks anselld. I have checked the contract and there is no allowance for the agent to deduct check out fees up front or at the end of the tenancy.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]The contract states the deposit can be taken for damage, compensation to the landlord for breach of tenancy, unpaid utilities or council tax and unpaid rent.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I have also received a copy of the deposit certificate from My Deposits which confirms that only £1200 was initially protected.[/FONT]