The Court of Appeal has handed down judgement in the case of Gladehurst Properties Ltd v Hashemi. This case has significantly changed the interpretation of tenancy deposit protection legislation and will make the legislation almost completely without effect.
Click here to read the full article Tenancy deposit protection bites the dust
NetRent Comment
It seems true to say that this shakes the current deposit protection rules to the core. Landlords and Agents have always complained that Deposit Protection was a burden that was unfair and not required. It now seems that it is effectively legally unenforceable.
Landlords and Agents have to ask themselves whether or not it is still worth going to the time, trouble and expense of Deposit Protection if, as it appears, there is nothing to gain for either themselves or tenants. If Landlords and Agents conclude that Deposit Protection is not worth the time, trouble and expense and simply do not comply with the legislation there appears to be little downside unless they wish to issue a Section 21 Notice.
In short this legislation is now a complete mess and the Government needs to resolve this urgently.
