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04 December 2015

The Deregulation Act 2015

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04 December 2015

The Deregulation Act 2015

The Deregulation Act has made major changes to the operation of tenancy deposits and to section 21 notices.

It is hoped that the changes will make it simpler for landlords to protect tenancy deposits by removing some of the flaws in the system, but they will also make it considerably more difficult to evict tenants by using the so-called ‘no fault possession’ process provided by section 21.

The new regulations will not have retrospective affect and so will only apply to tenancy agreements entered into after 1st October 2015, therefore there will be transition period for a number of years, where the laws which apply to your tenants could vary depending on when the agreement was entered into.

The law surrounding tenancy deposits has become quite convoluted with the decision in superstrike. These new regulations have changed this and require that a deposit be placed into a scheme within 90 days and the prescribed information served. This does not have to be repeated, so long as the tenants, demise and the deposit remain the same.

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Expert Commentary

There will be a new style of section 21 notice which for the first time will be in a prescribed format. This will have to be used for any tenancy which first commenced on or after 1 July 2015. Additionally, for any tenancy which first begins on or after 1 October 2015 it will not be possible to serve a section 21 notice in the first four months of the tenancy. 

Any section 21 notice served will also only be usable for six months from the date of service, or in the case of a notice served under s 21(4)(a), four months from the date of expiry. These notices will therefore take on a ‘use it or lose it’ aspect. The notice will also be found to be invalid where complaints are made about the condition of a property and a landlord fails to perform repairs. 

Our property litigation team will be holding a seminar on the changes brought in by these regulations in the New Year so ‘watch this space’ to reserve your place to attend our free seminar. In the meantime, if you have any tenancy issues please do not hesitate to contact our team.

This is not legal advice; it is intended to provide information of general interest about current legal issues.

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