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  • Deposit Protection

    Council paid deposits and protection

    Can someone assist with information on deposits paid by LHA/Preventing Homelessness scheme? I received a deposit directly from the LHA for a tenant with the proviso that the deposit was paid directly back to them at the end of the tenancy, less any deductions - I had to sign an agreement stating this. I always use the DPS custodial scheme but was not able to in this case as the owner of the deposit was an organisation rather than an individual. I was also advised by Landlord Advice UK that in the case of a company or organisation, there was no requirement for protection.

    After 2 years, the deposit was protected in the tenants name and the council permission for this was gained. I now have a court claim against me for failing to protect the tenants deposit, who is highly malevolent and hellbent on 'taking me to the cleaners'.

    Any advice please? I am currently writing my defence to the case and do not have the funds for an expensive lawyer!

    May thanks in advance Smile

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    You were misadvised. If the deposit was actually paid to you as opposed to the council giving you a promise to pay then it should have been protected right at the start and the council should have been given the relevant deposit protection information as they are a "relevant person" under the legislation.

    I would strongly advise you to settle this now by making an offer to the tenant. You should also make a complaint to "Landlord Advice UK", whoever they are, for the garbage advice you have been given. They are probably negligent and may well owe you the cost of the claim. 

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    David Smith
    Landlord & Tenant Solicitor
    Anthony Gold Solicitors

    Find me on LinkedIn: uk.linkedin.com/in/dsnsmith

    All opinions are my own and do not reflect those of my firm. No comment made should be taken as legal advice and you should consult a solicitor or other legal professional for advice on your specific situation.

    Thank you for your reply - If the deposit should have been protected in the council's name, how could I have done that when I had no individual details to use? A name, email address and telephone number is required for an individual. The deposit belonged to the LHA, not the tenant.

    Also, if there has been a failure to protect the deposit, surely it has to be the LHA taking action, not the tenant, as they did not pay the deposit?

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    My landlord is trying to say that as thecouncil paid my deposit.... which my ll failed to protect that i dont have a claim for compensation because it wasnt my money. The landlord has now given the deposit back to the council so they are saying case closed... is this correct. Hes a pretty rubbish landlord so if i can get some money out of him i will


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    Lesley, did you pay Landlord Advice UK for a legal opinion regarding the necessity to protect the tenant deposit?  This is from the T&Cs on their website:

    “TDS” Tenant Deposit Scheme – It is the responsibility of all clients to ensure they have complied with the TDS. All clients are reminded section 21 notice will be deemed invalid should the client not comply with the TDS before serving a eviction notice. It is not our responsibility but the clients responsibility to ensure they have complied with the requirement of the TDS in full and this includes providing the tenant the TDS prescribed information. We do not nor will we advise clients on any aspect of their compliance or non compliance in respect of the TDS. The TDS is contentious for many landlords for various reasons and we can obtain Counsels opinion for your particular case should we be instructed and upon receiving a fee in advance.         https://www.landlordadvice.co.uk/terms-an...advice-uk/

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    Hi Beth,

    Yes I did pay Landlord advice for this information, but that was when I consulted them about the potential claim for failure to protect. They said that there was no requirement to protect the deposit from a company or organisation.

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    A lesson here for all of us

    NEVER trust Councils!!!

    Or anyone associated with them.

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    *TDS is unable to provide legal advice, and recommend that you seek legal council from a professional*

    A tenancy is a ‘company let’ if the tenant is an organisation. Company lets, such as when a business rents a property on behalf of their employee, do not need to have the deposit protected.

    In this scenario, the tenant is a person, so the deposit should have been protected. The Council would be a ‘relevant’ person as they have paid the deposit on behalf of the tenant. The council should, therefore, have been issued with the prescribed information, and listed against the deposit protection as a relevant person.

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    Thank you for the reply - this raises 2 further questions:

    How can the deposit be registered in the name of the council/LHA, when there is no individual that can be designated in order to reclaim the deposit at the end of the tenancy, or to agree to deductions?

    If I have failed to protect the deposit as it appears, is it not the LHA that has to bring a claim for non-protection?

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    Dear Lesley,

    You could have protected the deposit in the tenants  name from the offset and used the housing officers name care of the council address as an interested party.

    If you need advice please feel free to contact me.




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    My landlord is trying to say that as the council paid my deposit.... which my ll failed to protect that i dont have a claim for compensation because it wasnt my money. The landlord has now given the deposit back to the council so they are saying case closed... is this correct. Hes a pretty rubbish landlord so if i can get some money out of him i will

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