Uncategorized

Court of Appeal decision affects tenancy deposits

RLA
Written by RLA

A decision in the Court of Appeal (Superstrike vs Rodrigues) earlier this week has caused consternation in the private rented sector, and affects some tenancy deposits. The RLA has taken its time to consider the fall-out from the decision, and has taken expert advice from tenancy deposit providers…

A decision in the Court of Appeal (Superstrike vs Rodrigues) earlier this week has caused consternation in the private rented sector, and affects some tenancy deposits. The RLA has taken its time to consider the fall-out from the decision, and has taken expert advice from tenancy deposit providers.

What did the Court of Appeal decide?

The decision goes against Government advice, and the RLA is hopeful that further consideration of the situation will see it rectified in due course.

The Court of Appeal decided:

  • That a statutory periodic tenancy constituted a new tenancy.
  • A deposit paid before 6th April 2007, where a periodic tenancy (without any changes from the original fixed term) arose after the 6th April 2007 SHOULD have been protected with a tenancy deposit scheme.
  • That Prescribed Information should have been served.

In the case of Superstrike vs Rodrigues, the landlord did not protect the deposit or serve Prescribed Information, and therefore could not rely on a section 21 notice to gain possession of the property.

What is the RLA’s response?

In order that we can give you a measured, clear and consistent response, we have been involved in active discussions with our tenancy deposit providers TDS, who in turn are consulting with the Department for Communities and Local Government, along with the other three approved deposit schemes.

The RLA is working closely with TDS, and we will be providing an update via the news hub when more information is available.

Further information

 

 

About the author

RLA

RLA

The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.

5 Comments

  • Department of Communities & local Government are just parasites. Job for the boys who could hold a days job in Mcdonalds.

  • This judgement seems just a little bonkers! The tenants would be effectively holding over under the terms of their previous agreement whether by a statutory or contractural arrangement. Surely if it is a statutory periodic tenancy the tenancy is, using this judge’s logic, it is new tenancy every month or rental period? a service of terms should be agreed every single month. I really hope this judgement is appealed and overturned.

    It seems the government and judiciary want to cause as much grief as possible due to some smart ar*e lawyer finding a technicality on which to hang his hat and fatten his oversized wallet. I guess as Landlords we should insist ALL TENANCIES ARE FIXED TERM, NOTICE TO QUIT SERVED AT THE START OF THE TERM FOR POSSESSION AND NEW AGREEMENTS CHARGED TO THE POOR TENANT EVERY TIME THEY WISH TO EXTEND. THIS IS NOT GOOD FOR ANYONE!

    Oh why can common sense prevail – I guess it because fat cat lawyers would be poorer!!!!!

    Like Shelter they seems to want to change the majority for the needs and desires of the minority. Also I guess MP’s and the government departments need to keep introducing more and more legislation to justify their excessive salaries. If the legislation was well written to start with then such case law would not be required.

    The vast majority of tenants have a good relationship with their landlords shames Shelter only see the minority and inflate their view. They had a place with the old rent acts were in place and landlords were forced by the authorities to provide poor accommodation as there was NO RENT to pay for maintaining the property properly. The idiots now advocating the bad old days need to take some history lessons!

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.