Landlords to time it right or cost themselves more time (and money) in the future

Landlords to time it right or cost themselves more time (and money) in the future

This August, there has been a significant legal ruling set to impact landlords everywhere in England and Wales.   The case highlights the importance of timing when providing the prescribed information (including the deposit amount, details of the protection scheme and information regarding dispute resolution procedures regarding tenancy deposits) and clarifies that such information must be provided to Tenants after the deposit has been paid and not before.  If landlords fail to adhere to this, then subsequently it could mean that any service of a Section 21 Notice may be invalid.

Siddeeq v Alaian is a case where an Assured Shorthold Tenancy (AST) was entered into and the necessary prescribed information had been provided to the Tenant as part of the Tenancy Agreement.  However, because the AST was signed the day before the Tenant paid their deposit, when the Landlord served a Section 21 notice on the Tenant, the Tenant argued the Notice was not valid as the prescribed information had been provided to them before they had actually paid the deposit.   The Court found in favour of the Tenant on appeal and stated the prescribed information can only be valid if it relates to a deposit that has been paid, not one that is expected to be paid.  The Court also stated that the timing of the provision of such information is crucial and if provided early i.e. before the deposit is paid, the notice will not meet the requirements of the Housing Act 2004.

It is therefore imperative for landlords to adhere to this ruling and follow the strict procedures regarding Tenancy Agreements, particularly in relation to deposits.

At Norrie Waite & Slater we still see examples of Landlords not following the correct process and not providing the prescribed information to Tenants, either in full or at all or Landlords not placing deposits in the deposit schemes as required.  This therefore also allows Tenants to potentially claim compensation from Landlords for failing to protect the deposit.

We have also seen a significant increase in Courts finding in the Tenants’ favour in possession matters and where an invalid Section 21 Notices is served it causes delays  in obtaining possession as well as an increased cost for the Landlord.

At Norrie Waite & Slater we can help Landlords navigate through the process to serve a valid notice on their Tenants, relieving the pressure from them of undertaking this process themselves.

Once the Notice is served, we can then follow through the procedure, seeing the matter through the Courts’ possession process and we can also assist with recovery of outstanding rent arrears from Tenants or defending counterclaims against Landlords for housing disrepair claims.  Housing disrepair as a counterclaim to possession, is being raised by Tenants more frequently, often as a delaying tactic or a reason to not pay rent.  We have however had some recent successes in obtaining Possession Orders and Judgments against Tenants for repayment of outstanding rent arrears as well as successfully defending counterclaims by Tenants for housing disrepair.

Should you need any help and assistance in such matters then please contact Sarah Tagg at Norrie Waite & Slater on 0114 276 6166.