Homeowners who rent out their properties are being warned they may not be able to evict tenants as easily under a new court ruling.
Solicitor James Murray, of Jones & Co Solicitors in Bawtry, said landlords are unlikely to be able to evict tenants with a ‘no fault’ Section 21 notice if the tenancy deposit was not protected in an authorised scheme at the start of the tenancy.
He said: “When landlords need to evict a tenant they often use a Section 21 notice, which can be used in assured shorthold tenancies to give tenants two months’ notice to leave a property.
“In a recent Appeal Court ruling, the judge decided the tenant could not be evicted using a Section 21 because the landlord had not originally placed the deposit in an approved scheme, even though there was no law stating it was necessary at the time the tenancy began.
“Landlords in a similar situation might think they can protect themselves by placing any tenancy deposits in a scheme now, but unfortunately this will not help them if they didn’t protect the deposit originally. Although landlords can still evict tenants for rent arrears or damage to the property, they may not be able to for other reasons.”