Double Jeopardy: A Warning from North of the Border to Letting Agents in England and Wales

In a landmark ruling in July this year, a letting agency in Scotland has become the first to be successfully prosecuted by North Ayrshire Council’s Trading Standards team, for failing to protect the deposits of their tenants in a tenancy deposit scheme using consumer legislation.

Deposits must be protected in a tenancy deposit scheme

In England and Wales, deposits taken by a landlord must be protected in a tenancy deposit scheme within 30 days of receipt, by virtue of the Housing Act 2004. The Tenancy Deposit Schemes (Scotland) Regulations 2011 have a similar effect, however the Council in this instance used consumer protection legislation (the Consumer Protection From Unfair Trading Regulations 2008) to successfully prosecute Colvin Houston Limited.

The Council argued that the landlord was a consumer rather than a professional and that accordingly, the agent had failed to meet the standard of skill and care that was required of a letting agent. Colvin Houston Limited’s practice of failing to protect tenancy deposits was deemed to be unfair. The agent pleaded guilty for failing to protect two deposits, and was fined £750.00. The agent paid £500.00 for submitting an early plea.

Lettings agents should seek legal advice

The wide spread publicity for this story means that Councils in England and Wales will have gained an insight into this area of law and agents should avoid attracting attention for routine failures to protect deposits. Letting agencies should seek legal advice where there is any doubt in the practices they have adopted, bearing in mind that the Consumer Protection From Unfair Trading Regulations 2008 applies to England and Wales, as well as to Scotland.

Contact:

Alina de Heer

Email: ak@deanwilson.co.uk

Tel: 01273 249297

or speak to our Property Litigation team