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tsu3000
08-03-2006, 11:36 AM
Hi

I'm a landlord and I've been told by my letting agent that a new law will come into force this year in Sept/Oct that will force a landlord to put the holding deposit with a 3rd party to look after for the duration of the rental period.

Is this true?

Thanks.

J

Editor
08-03-2006, 11:42 AM
Your agent is right, new laws will be coming in regarding deposits in the autumn, but they won't necessarily need to be held by a third party. You can find out more by reading our December 2005 and January 2006 Newsletters (http://www.landlordzone.co.uk/BlogNews/newsletter-archive.htm)

Billy Whizz
28-05-2006, 19:06 PM
Your agent is right, new laws will be coming in regarding deposits in the autumn, but they won't necessarily need to be held by a third party. You can find out more by reading our December 2005 and January 2006 Newsletters (http://www.landlordzone.co.uk/BlogNews/newsletter-archive.htm)

Thanks. Still cant see the punch line where you say "they won't necessarily need to be held by a third party"

I think these rules are more for the tenants than the Landlord:rolleyes:

islandgirl
28-05-2006, 20:05 PM
What if both parties agree to waive their rights and for the landlord to hold the deposit? If they both signed to that effect, could there be legal recourse?

attilathelandlord
28-05-2006, 20:09 PM
You can't sign away rights and responsibilities assigned under an Act of Parliament. It's like drawing up a contract for murder, it's still illegal!!!

Worldlife
28-05-2006, 20:14 PM
What if both parties agree to waive their rights and for the landlord to hold the deposit? If they both signed to that effect, could there be legal recourse?

As far as I understand the landlord may continue to hold the deposit if he belongs to an approved insurance scheme. As yet the details of how the small private landlord can participate in the schemes, the providers and the cost have not been resolved. Another example of hasty ill thought government legislation.

islandgirl
28-05-2006, 20:24 PM
Thanks Atillathelandlord - Must confess I have felt like murdering tenants before now but have restrained myself! Problem with the insurance option - apparently landlord holds deposit but if there is a dispute has to pay it into the insurance scheme and it is decided by a 3rd party. An awkward tenant will always dispute everything and then the landlord has to fight for what is rightfully his. And guess where the cost will come from - the deposit of course! I understand that there are terrible landlords but there are also terrible tenants and the law always seems to be on their side.

Worldlife
28-05-2006, 21:11 PM
Agree with you Islandgirl that does seem a possibility.

I reckon it would only be fair if the losing side pays the costs but that probably will not happen in a system that favours tenants to the prejudice of landlords.

If the losing side had to pay that would avoid frivolous unresolved claims from both parties.

Jennifer_M
29-05-2006, 10:39 AM
Is there a possibility that the 3rd party could hold a database of names for tenants and landlords who "seem" to end up in mediation a lot (trouble makers) and the ones who lose a lot too?

This would be a positive aspect of this scheme as landlords and tenants could check the database before deciding to take on a tenant or rent from a landlord.