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Deposit Lost: Agency Bankrupt, Landlord Unhelpful

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  • Deposit Lost: Agency Bankrupt, Landlord Unhelpful

    Hello everyone,

    I need urgent advice about my tenancy deposit situation here in England. Last October, I moved into a new rental property through a letting agency and paid a deposit, which was supposed to be transferred to a government-approved scheme for safekeeping. However, I never received confirmation of this deposit being secured. In December, the landlord informed me that the agency hadn't been paying him rent or bills for months, leading him to take over. He proposed issuing a new contract to replace the old one.

    When I contacted the deposit scheme, I found out my deposit wasn't there, which made me suspect the agency might have taken off with the money. In February, the landlord gave me a new contract and said I had to sign it to replace the old one, so I could get my deposit back. Then, I could transfer it back to him, and he could properly transfer it to the Scheme under his name. He said he was talking to the deposit scheme and they were waiting for me to get in touch to sort things out through their insurance.

    I talked to my landlord to confirm if he was sure about it, as my deposit was missing and my previous attempts to contact them were unsuccessful. However, he insisted that I had to claim it this way. So I signed the new contract and emailed the Scheme explaining the whole situation attaching evidence of my deposit payment to the agency. But they got back to me today and confirmed my deposit wasn't in their records and they cannot offer any further help.

    I have just informed my landlord, and now he mentioned that he would give me a call tomorrow. I suspect he's waiting to seek legal advice and might not want to deal with my deposit issue directly.
    Now, I'm unsure about what to do next to claim my deposit. It seems reasonable to me that since I paid the agency and the money belongs to the landlord, he should shoulder the loss and support me, especially considering the agency's failure to pay rent and bills.

    Should the landlord take responsibility for the missing deposit, or should I pursue the -now defunct- letting agency, whose director is missing overseas? Any advice or insights would be greatly appreciated.
    Tags: None

  • #2
    The landlord is entirely responsible. It is for him to get the money from the agency but he must return your deposit. As I understand it you are entitled to claim 3 x the deposit from the landlord for non protection

    Comment


    • #3
      Agreed.
      Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.

      Litigants in Person should download and read this: https://www.judiciary.uk/wp-content/..._in_Person.pdf

      Comment


      • #4
        Thank you for your answer. The landlord has repeatedly insisted that I should directly contact the Scheme to retrieve the deposit. However, in my situation where the agency did not deposit the money, this approach seems illogical, doesn't it?

        Comment


        • #5
          It does.

          Your landlord appointed the agent. You paid him as agent for your landlord; it is as if you paid the landlord.

          You may claim compensation for not protecting your deposit under s 214 Housing Act 2004. See s214(4). https://www.legislation.gov.uk/ukpga...rt/6/chapter/4
          Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.

          Litigants in Person should download and read this: https://www.judiciary.uk/wp-content/..._in_Person.pdf

          Comment


          • #6
            Make sure if you speak to him you tell him you know all the above - it may concentrate his thinking as he is potentially liable to pay you 3 x whatever your deposit was

            Comment

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