There is some confusion about whether this case affects deposits taken since April 2007, and in particular whether deposits need to be re-protected and the prescribed information re-served when a periodic tenancy arises.
Guidance now issued by the Deposit Schemes
The guidance is the same for all schemes – you can download it from My Deposits page >> here along with a briefing document with comments on the implications of the case.
- If your tenancy is still within the original fixed term
You are advised to check the deposit is still protected at the end of the fixed term and re-serve the prescribed information at that stage if the tenants do not vacate.
- If your tenancy has renewed either as a new fixed term or as a new periodic tenancy
(Eg the tenants have just stayed in the property on a month to month basis) – then it is possible you may be in breach already without realising it.
We don’t know if this is the case or not until there is another Court of Appeal of Supreme Court decision.
It is up to you whether you
- Re-protect (if necessary) and re-serve the prescribed information now or (bearing in mind that most tenancies end amicably with the tenants moving out)
- Re-serve the prescribed information just before you serve a section 21 notice (assuming the deposit is still protected).
This is all highly unsatisfactory and just shows what happens if legislation is not thought through properly.
I will post here if I hear any more news.