Since 6 April 2007, Landlords of Assured Shorthold Tenancies (AST) have been under a strict obligation to register a deposit paid by a tenant within 30 days of receipt and to serve prescribed information confirming the details of the registration on the tenant within the same 30 day period.
In Superstrike Ltd v Rodrigues (2013), the Court of Appeal was faced with the question of what steps a landlord is required to take when the initial fixed term of an AST, which was entered into before 6 April 2007, expires and the tenant remains in occupation of the property, holding over pursuant to a statutory periodic tenancy.
The Court of Appeal held that, in such circumstances, the landlord will be required to comply with the tenancy deposit registration rules in respect of the new periodic tenancy upon expiry of the fixed term.
This principle has now been extended by a County Court decision, Gardner v McCusker (2014), to include situations where the AST was entered into after 6 April 2007. The Court held that, even where the landlord has previously registered the deposit at the beginning of the fixed term AST, they will be required to comply with the tenancy deposit requirements once again if the tenant remains in occupation at the end of the fixed term pursuant to a statutory periodic tenancy.
This decision has raised concerns that the requirements placed on landlords to comply with the tenancy deposit rules have become disproportionately onerous. Landlords will now need to ensure that they (or their agents) closely monitor their tenancy portfolios to ensure that the registration requirements are fully complied with at both the start of a fixed term AST and on expiry if the tenant is to remain in occupation. A failure to do so could cause delays in a landlord recovering possession of residential properties and a potential liability to pay compensation to existing tenants.
Please note that this information is provided for general knowledge only and therefore specific advice should be sought for individual cases.
For further information, please contact Edward Vaughan at or Kenny Friday at
