How much deposit can be taken

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  • Newmarket
    replied
    Searching it is still rather puzzling.

    As well as Hackney I have found several other councils stating that it is 'illegal to charge more than 2 months rent as deposit' eg. Oldham and Nottingham.

    In addition sites such as Visitbritain, Kiwikingdom, Caterer-recruitment - Universities such as: Swansea, John Moores, Lancashire, UK92.com all state the same.

    Where do they get this information from??

    Leave a comment:


  • jeffrey
    replied
    The Council might have a vestigial memory of the position under the old Rent Act 1977- when there was such a limit on deposits.

    Leave a comment:


  • westminster
    replied
    Originally posted by jeffrey View Post
    That rule in s.15 applies only to a periodic tenancy actually created as such contractually from day1, i.e. not:
    a. to a fixed-term letting; nor
    b. to a statutory periodic tenancy.
    So a deposit exceeding two months' rent is not treated as a premium if it's received on a fixed-term letting; and therefore T does not acquire a statutory right to assign.
    Seems rather a random law - ?

    Is there anything else which might account for Hackney Council et al thinking that more than two months deposit is 'illegal'? I believe it is in Scottish law, so maybe that's where it has come from.

    Leave a comment:


  • jeffrey
    replied
    Originally posted by westminster View Post
    I think I've found something which may shed some light... s.15 Housing Act 1988

    http://www.opsi.gov.uk/acts/acts1988...-ch1-pb3-l1g15

    As a layperson, what this appears to me to say is that it is not 'illegal' to take more than 2 months deposit, but, if LL does take more, it gives the tenant the right to assign or sublet. Professional legal opinions needed!
    That rule in s.15 applies only to a periodic tenancy actually created as such contractually from day1, i.e. not:
    a. to a fixed-term letting; nor
    b. to a statutory periodic tenancy.
    So a deposit exceeding two months' rent is not treated as a premium if it's received on a fixed-term letting; and therefore T does not acquire a statutory right to assign.

    Leave a comment:


  • Guest's Avatar
    Guest replied
    Originally posted by Newmarket View Post
    Gambit, you were jolly lucky.

    The story about the carpets brought back sad memories for me after renting out my home for six months whilst I worked overseas (furnished with cream carpets)

    Specified no pets: The tenant brought in cats which left me with flea's and I had to dispose of my suite. They also (apparently) rode motor bikes and parked the bikes in the lounge You can immagine the state of the carpets - totally wrecked.
    Oh don't worry I've plenty of horror stories to tell too.

    I'm sorry to hear it left you with fleas though. LOL

    Leave a comment:


  • Newmarket
    replied
    Gambit, you were jolly lucky.

    The story about the carpets brought back sad memories for me after renting out my home for six months whilst I worked overseas (furnished with cream carpets)

    Specified no pets: The tenant brought in cats which left me with flea's and I had to dispose of my suite. They also (apparently) rode motor bikes and parked the bikes in the lounge You can immagine the state of the carpets - totally wrecked.

    Leave a comment:


  • westminster
    replied
    Originally posted by agent46 View Post
    That's correct. The advice given by the local authorities is wrong.
    This does not come as a surprise.

    Leave a comment:


  • Guest's Avatar
    Guest replied
    Originally posted by Newmarket View Post
    Is there any legislation stating how many weeks/months deposit can be taken on a property?
    I've taken 4 months deposit before. Tenants in my case, had a large family and pets, I was worried about the carpets, they offered a large deposit to secure the property, so it seemed the sensible thing to do. Guess what? When they left, the carpets were in good shape and had been cleaned properly for a change.

    Leave a comment:


  • Newmarket
    replied
    I wasn't looking at Scotish Law, my search just took me there initially.

    With ref to Section 15: 4(c) Housing Act - Does this mean that if my tenancy is 6 months and landlord give me appropriate notice that he wan't the property back at the end of the term but, a week before I am due to leave I am able to legally assign the property to another on a AST for 6/12 months?

    Leave a comment:


  • agent46
    replied
    Originally posted by westminster View Post
    I think I've found something which may shed some light... s.15 Housing Act 1988

    http://www.opsi.gov.uk/acts/acts1988...-ch1-pb3-l1g15

    As a layperson, what this appears to me to say is that it is not 'illegal' to take more than 2 months deposit, but, if LL does take more, it gives the tenant the right to assign or sublet. Professional legal opinions needed!
    That's correct. The advice given by the local authorities is wrong.

    Leave a comment:


  • westminster
    replied
    Originally posted by Newmarket View Post
    No. I am not in Scotland. I have just found reference to Scotish Law.
    If you're not in Scotland, then there is no point looking at anything to do with Scottish law.

    Leave a comment:


  • westminster
    replied
    I think I've found something which may shed some light... s.15 Housing Act 1988

    http://www.opsi.gov.uk/acts/acts1988...-ch1-pb3-l1g15

    As a layperson, what this appears to me to say is that it is not 'illegal' to take more than 2 months deposit, but, if LL does take more, it gives the tenant the right to assign or sublet. Professional legal opinions needed!

    Leave a comment:


  • tom999
    replied
    Here's the link: Advicekit (site owned by Manchester City Council):

    "Most landlords charge a deposit that is the equivalent of one month's rent. It is illegal for a landlord to charge more than the equivalent of two month's rent."

    Which I would say is incorrect, for AST's in England or Wales.

    Note that at the base of the page it states:

    "Information Provider: Manchester Advice
    Date Written: 18/9/08
    This information is for guidance only and is not an authoritative statement on the law. Please read our Terms and Conditions."



    Better: to take the correct legal advice, instead of looking for random links on the internet (a lot of info. is inaccurate).

    Leave a comment:


  • Newmarket
    replied
    No. I am not in Scotland. I have just found reference to Scotish Law.

    Upon continuing searching there are several comments to it being illegal in England to ask for more than2 months deposit.

    Check out Advicekit.info/advice - section housing/deposts. (sorry can't figure out how to do links) and tell me what you think. Perhaps I should email them and ask for the relevant section of law?

    Leave a comment:


  • westminster
    replied
    Originally posted by Newmarket View Post
    Thanks, I am just trying to clarify the situation.

    Upon doing a general internet search, lots of local Government Authorities say that you should not be asked for more than 2 moths deposit. Hackney actually state that it is ILLEGAL. It is in Scotland.
    You are in Scotland and the property is in Scotland??

    If so, be aware that all the advice you've had so far applies to England & Wales only. The law is different in Scotland. For a start, deposit protection doesn't apply in Scotland.

    Leave a comment:

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