New law about holding deposit

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    New law about holding deposit

    Hi

    I'm a landlord and I've been told by my letting agent that a new law will come into force this year in Sept/Oct that will force a landlord to put the holding deposit with a 3rd party to look after for the duration of the rental period.

    Is this true?

    Thanks.

    J

    #2
    Deposits

    Your agent is right, new laws will be coming in regarding deposits in the autumn, but they won't necessarily need to be held by a third party. You can find out more by reading our December 2005 and January 2006 Newsletters

    Comment


      #3
      Originally posted by Editor
      Your agent is right, new laws will be coming in regarding deposits in the autumn, but they won't necessarily need to be held by a third party. You can find out more by reading our December 2005 and January 2006 Newsletters
      Thanks. Still cant see the punch line where you say "they won't necessarily need to be held by a third party"

      I think these rules are more for the tenants than the Landlord

      Comment


        #4
        What if both parties agree to waive their rights and for the landlord to hold the deposit? If they both signed to that effect, could there be legal recourse?
        Unshackled by the chains of idle vanity, A modest manatee, that's me

        Comment


          #5
          You can't sign away rights and responsibilities assigned under an Act of Parliament. It's like drawing up a contract for murder, it's still illegal!!!

          Comment


            #6
            Originally posted by islandgirl
            What if both parties agree to waive their rights and for the landlord to hold the deposit? If they both signed to that effect, could there be legal recourse?
            As far as I understand the landlord may continue to hold the deposit if he belongs to an approved insurance scheme. As yet the details of how the small private landlord can participate in the schemes, the providers and the cost have not been resolved. Another example of hasty ill thought government legislation.
            Vic - wicked landlord
            Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
            Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

            Comment


              #7
              Thanks Atillathelandlord - Must confess I have felt like murdering tenants before now but have restrained myself! Problem with the insurance option - apparently landlord holds deposit but if there is a dispute has to pay it into the insurance scheme and it is decided by a 3rd party. An awkward tenant will always dispute everything and then the landlord has to fight for what is rightfully his. And guess where the cost will come from - the deposit of course! I understand that there are terrible landlords but there are also terrible tenants and the law always seems to be on their side.
              Unshackled by the chains of idle vanity, A modest manatee, that's me

              Comment


                #8
                Agree with you Islandgirl that does seem a possibility.

                I reckon it would only be fair if the losing side pays the costs but that probably will not happen in a system that favours tenants to the prejudice of landlords.

                If the losing side had to pay that would avoid frivolous unresolved claims from both parties.
                Vic - wicked landlord
                Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
                Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

                Comment


                  #9
                  Is there a possibility that the 3rd party could hold a database of names for tenants and landlords who "seem" to end up in mediation a lot (trouble makers) and the ones who lose a lot too?

                  This would be a positive aspect of this scheme as landlords and tenants could check the database before deciding to take on a tenant or rent from a landlord.

                  Comment

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