Deposit Protection Scheme (DPS) - compensation when it is not used

[Soapie]

Sorry to post this again but I'd really appreciate a steer on this one.

My daughter and her friends had a flat under an Assured Shorthold Tenancy. They have now moved as the AST finished and they have had their deposit returned. The Landlord appears to have not used the DPS and did not confirm anything to them during their tenancy. The landlord has been asked if the DPS was used but no reply has been forthcoming. Using the DPS was included as a clause in the tenancy agreement. Can I check retrospectively, if the DPS was used in an archive somewhere? Is there a case for compensation by taking the landlord to court if the DPS was not used or would this only apply if the deposit was not returned?

[jaguarsuk]

Technically the landlord was in breach of the contract if it was stated in the agreement that it would be used, however your daughter has suffered no loss and therefore what would you be taking them to court for?

Had the landlord not returned the deposit then you'd have a claim.

[R0b]

jaguarsuk


I believe there is a strict liability for non-compliance of securing the deposit in a scheme and I am fairly certain the way the legislation is worded (and some not so long ago case law) suggest that the court must make an award of between one and three times the deposit amount. The award will depend on certain factors such as the experience of the LL, whether it was deposited at all during the tenancy etc.

Irrespective of whether loss has been suffered, I believe that your daugther ought to be entitled to compensation. The starting point would be to confirm with the DPS that there was no deposit by the LL at any time during the AST - she would have known because the LL would have to send you some documentation along with the DPS reference number.

Two links below which may be of help, first one informative and the second is steps on what you need to take.

https://www.streathers.co.uk/statuto...ancy-deposits/

https://england.shelter.org.uk/housi...nsation_claims

[Soapie]

OK, thanks for both responses. They do give two diverging answers, unfortunately.

My lay opinion is that the DPS is mandatory for landlords and an element of the scheme is to reduce the risk for tenants. If the DPS is not used by a landlord they are not only acting illegally but they are putting the tenants' deposit at greater risk. Assessing that risk is the thing that would need legislative guidance and case law?

Any further views or information would be very helpful.

[wales01man]

The only way to find out is to put this before a court would suspect this is the only way .

[Amethyst]

Check the three deposit protection scheme providers ( contact info here https://england.shelter.org.uk/housi...t_is_protected
if it wasn't protected then you can take the landlord to court for a breach of his statutory duties - claim is for three times the amount of deposit paid. It's a part 8 claim to the court.

https://england.shelter.org.uk/housi...nsation_claims

and pre action letter for after end of tenancy when a deposit has already been refunded
https://england.shelter.org.uk/__dat...le_letter.docx

.... Personally as the deposit was returned in full and there were no issues with the tenancy it seems ambulance chaser'y To go for compensation but it is a legal right...and hopefully ensures that the landlord does actually protect further tenants deposits.

[Soapie]

Thanks for your response and the useful links, which I have followed up. I didn't say that there weren't any other issues, by the way! It was the DPS one that I wanted to take forward. I think the compensation if awarded, is intended as a deterrent, Most landlords that I have come across have no problem in following the legislation and understand why it is in place. Unfortunately, there are some who chose to try and take advantage of tenants.