Tenancy Deposit Schemes: Section 21 Notices

Landlords will welcome the High Court’s comments on when sanctions for non-compliance with the tenancy deposit scheme (TDS) legislation are triggered. The tenant had argued that the section 21 notice served by the landlord was invalid, as, at the time of service, the landlord had not yet protected the deposit in a TDS. The court considered that:

  • The landlord was obliged to protect the deposit in a TDS, and provide the prescribed information, within 30 days of receipt of the deposit.
  • Sanctions for non-compliance only applied if the landlord failed to comply within the requisite 30 day period.
  • The landlord had complied within 30 days. Therefore the section 21 notice was effective, even though it was served before the deposit was protected in the TDS.