MP welcomes new tenancy rights - 27th Mar, 2007

Sian James MP has welcomed new tenants rights.

As from this April most private tenants in England and Wales will now have their tenancy deposits protected so landlords can no longer unreasonably withhold their rent – following a joint campaign by Shelter, Citizens Advice – and backed by Sian James MP.

Last year more than three-quarters of all tenants who had their money withheld claimed it was retained unfairly. With the average deposit now reaching £700 in England, losing a deposit can cause real hardship and lead to homelessness.

The new tenant rights coming into force from April 6 will be good news for both tenants and landlords. Sian James MP is raising awareness of the new scheme that will help protect Swansea East tenants’ money and also help to resolve disputes over deposits at the end of tenancy.

From April, all new deposits for assured short hold tenancies (ASTs) must be protected. The new law requires all landlords to be in a Government-approved scheme and there are sanctions against landlords who don’t comply with the new law. Anyone signing a tenancy agreement after April 6 should ask their landlord or agent how their deposit will be protected.

Sian James MP said “This is good news and will directly benefit thousands of tenants who face problems getting their deposit returned, plus provide a vital safety net for both tenants and responsible landlords. So from April 6, before signing a new contract, ask your landlord or agent which Tenancy Deposit Protection scheme they are part of as your money will only be protected if your landlord has signed up, which they are now required by law to do.”

Adam Sampson, Chief Executive of Shelter said “Shelter helps thousands of people each year with deposit problems and has campaigned for many years to get deposit protection introduced, so we are delighted to see the new Government scheme being rolled out, making the private rented sector fairer for everyone.”

Teresa Perchard, Director of Policy, Citizens Advice said: “We are absolutely delighted that the Government recognised that tenants deserve the assurance that their deposit is held safely and they are no longer at risk simply because rogue landlords refuse to return it when they move out. Statutory protection for deposits is something we have been calling for, for many years. We have worked with the Government all the way through on this and we now look forward to working with them on the national roll-out of the new scheme.”

Notes to editors:

1. 1.7 million people lived in the private rental sector under Assured Shorthold Tenancy (AST) agreements (Housing in England 2004/5 CLG, 2006). The average deposit in England for AST agreements is £700 (CLG Government figures). Using these figures, Shelter estimates that more than £1 billion in deposit money is currently being held by landlords.
2. In 2005/6 there were 2.5 million privately renting households, nearly 12% of all households.
3. In 2004/5 almost 30 per cent of deposits (held by landlords) were returned only in part or not at all. 77 per cent of tenants who did not get all of their deposit back felt that it was not justified for their landlord to withheld the amount of money they did (Housing in England 2004/05, DCLG, 2006)
4.Tenancy Deposit Protection (TDP) schemes will take two different forms. Single custodial schemes will involve money being paid into and held in a separate account. For insurance-based schemes, the landlord will retain the deposit, but any failure to repay the deposit to the tenant would be covered by the scheme's insurance arrangements. In both cases there will be an Alternative Dispute Resolution service to provide an alternative to the courts.
5. Images for media use of Shelter's red envelope can be downloaded from ww.shelter.org.uk/redenvelope. Shelter's free red envelopes can be ordered from www.shelter.org.uk or by calling 0845 458 4590.

For more information go to www.shelter.org.uk or www.citizensadvice.org.uk or www.communities.gov.uk/tenancydeposit

Tenancy Deposit Scheme – what it will mean for you:

• Anyone signing a tenancy agreement after April 6th should check with his or her landlord or agent how their deposit will be protected.

• The landlord has 14 days to tell you details of the scheme so you can check your money is protected. If your landlord or agent has not given you details you can contact the Tenancy Deposit protection helpline yourself to check the situation.

• There are sanctions against landlords who don’t comply with the law. You could take your landlord to court and if your landlord has not given you details of the scheme or has not put the deposit in an authorised scheme, the court will order the landlord to repay the deposit or pay it into a scheme. The court must also order the landlord to pay the tenant a fine of three times the deposit within 14 days. However, you may decide not to pursue this course of action until you are ready to leave.

• In addition, landlords who haven’t put the deposit in a scheme will not be allowed to use the ‘notice only’ ground to get an order for possession of their property. So if you are given notice to quit by your landlord, it’s very important to check immediately that your deposit is protected; if it’s not you should get advice as you may have a defence against eviction.

• If you move out of your home and your deposit has not been safeguarded in a scheme and your landlord won’t repay it, then you won’t benefit from the new protection. Your only course of action would be to take the landlord to court and try and get your deposit back. That’s why it is so important to check your position before that happens.

• For more information go to www.adviceguide.org.uk or www.shelter.org.uk www.communities.gov.uk/tenancydeposit