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Landlords warned after deposits court case stops eviction

deposits

An appeal judge has backed a tenant’s argument that serving prescribed information before the deposit is paid isn’t valid, meaning their eviction cannot go ahead.

In the case of Siddeeq v Alaian, the tenant had appealed against a possession claim at Brentford County Court (pictured)

Mayor’s and City of London County Court heard that the tenancy agreement was signed on 12th November 2021 and included a section setting out items of the tenancy deposit prescribed information and deposit value. The tenant paid the deposit on 13th November 2021 and was protected on 19th November 2021.

The landlord served a section 21 notice on 3rd November 2022 and issued an accelerated possession claim on 24th April 2023. The district judge ruled that the prescribed information could be given before the deposit was paid via the mydeposits scheme.

Appeal hearing

During the appeal hearing, the landlord argued that a ban on serving a section 21 notice did not apply so long as section 213(6)(a) of the Housing Act 2004 was complied with, even if it was done before the deposit was paid.

The judge allowed the appeal as he said information must be provided as prescribed - after the deposit has been paid. “If information is given before the deposit is paid then it is hard to see how the landlord or tenant could in good faith certify the amount of the deposit paid.”

He added: “A construction which allowed the provision of information prior to the deposit promotes uncertainty, for example how long can it be provided before the deposit is paid for it still to be prescribed information?”

Housing lawyer Giles Peaker (pictured, left) at Anthony Gold Solicitors says the case illustrates the risks of incorporating the majority of prescribed information into the tenancy agreement.

He advises landlords: “Always check the sequence of prescribed information (in while or in part) being given and the deposit being paid.”

"This ruling serves as a stark reminder for landlords"

Eddie Hooker (pictured, right) Chief Executive of mydeposits, says: “This ruling serves as a stark reminder for landlords and letting agents across England and Wales to strictly follow the legal procedures surrounding tenancy deposits.

"The Housing Act 2004 outlines specific requirements that must be met when a landlord receives a deposit from a tenant.

"One of these requirements is that prescribed information, which includes details about the deposit amount, the protection scheme, and dispute resolution procedures, must be provided after the deposit is taken, but no later than 30 days after that date."

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Deposit protection scheme

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