Claims
that the start of the Tenancy Deposit Protection Scheme
is to be further delayed
have been rubbished by
both Department of Communities and Local Government and
the National Landlords Association which is to run the ‘insured’ scheme
likely to be used by most landlords.
'It will not be delayed', a DCLG spokesperson
told Residential Landlord. 'We've heard nothing
about it and we and the DCLG are working towards the
6 April deadline', said a NLA spokesman.
Doubts
had been raised buy the letting agent Leaders. ‘We
are astonished to learn that the secondary legislation
necessary for the implementation of the TDP Scheme has
not yet been laid before Parliament because it is still
awaiting clearance by the Welsh Assembly', said
Leaders managing director Paul Weller. 'This should
have happened months ago, raising concerns as to whether
the legislation will be ready to come into force in time
for the 6 April deadline. The legislation has already
missed the previous deadline of October 2006'.
The
TDP will require all landlords taking deposits under
assured shorthold tenancy agreements
to protect deposits
by participating in either a 'custodial' or 'insured'
scheme. In the first instance the deposit will be handed
over
to the scheme for safe keeping, in the latter the landlord
will pay a premium that will effectively insure the
deposit. Any disputes between landlords and tenants
will have
to be settled by the schemes.
The new legislation, which has been designed to protect
tenants from unscrupulous practice concerning the holding
and return of deposits, will apply to all Assured Shorthold
Tenancies that begin on or after the implementation date
(currently 6th April 2007), as well as to all tenancies
renewed after that date, and will affect thousands of
landlords and letting agents.
Failure to protect deposits in this way will result
in the landlord being fined and forced to return the
deposit to the tenant. Meanwhile landlords who break
the rules will be unable to regain possession of their
properties by the serving of a Section 21 Notice, or
to enforce the terms of the tenancy agreement.
'We
are delighted to see this new legislation coming into
force as we have been campaigning for this
for more than two decades’, said Weller. 'However,
we are concerned about the fact that the legislation
has not yet been laid before Parliament. This delay
has knock on effects because the three new bodies which
have
been set up to look after tenant deposits are not able
to set their own rules and regulations until the secondary
legislation has been passed. We are concerned the 6
April deadline could be missed, leaving thousands of
tenants
vulnerable'.
Not
so, said DCLG and the NLA. However, the possibility
of a delay in Wales is not inconceivable.
Dates have
been set for debating the deposit protection have been
set and should enable introduction of the new rules at
the same time in both England and Wales. 'However,
Wales is a separate jurisdiction and it is up to the
Assembly to debate the rules. We would like the scheme
to go ahead at the same time in both England and Wales,
but it will certainly go ahead in England on 6 April',
said the DCLG spokesperson.
