Legislation change for Assured Shorthold Tenancy deposits

In an amendment to the Housing Act 2004, Tenancy Deposit Scheme (TDS) requirements have been extended for some assured shorthold tenancies (ASTs) created before 6 April 2007.

The new legislation applies when all of the below conditions are met.

  • A landlord received a tenancy deposit before 6 April 2007, in connection with a fixed term AST.
  • On or after 6 April 2007, a periodic AST is deemed to have arisen under section 5 of the Housing Act 1988 at the end of the end of the fixed term AST.
  • At the conclusion of the fixed term AST, all or part of the deposit paid in connection with the fixed term tenancy is held in connection with the periodic tenancy.
  • The landlord has not complied with the requirements of section 213(3), (5) and (6) of the HA 2004 in relation to the deposit held.

Landlord obligations under the new legislation

If you are a Landlord, you must protect tenant deposits within a TDS and provide prescribed information.

Failure to comply with the obligations may result in you being liable to financial penalties.

In some cases, you may also be unable to recover possession of your property from the tenant.