Ratio Decidendi
A tenancy deposit that is not protected in an authorised scheme as required by sections 213–215 of the Housing Act 2004 prevents the landlord from serving a valid section 21 notice to recover possession, and the tenant is entitled to compensation of between one and three times the deposit.
Ffeithiau
The landlord sought possession under section 21 of the Housing Act 1988. The tenant's deposit had not been protected in an authorised tenancy deposit scheme as required by the Housing Act 2004. The tenant argued the landlord could not rely on section 21 and counterclaimed for compensation.
Crynodeb o'r dyfarniad
The Court of Appeal held that the obligation to protect a deposit and provide prescribed information applies not only to the original tenancy but also to any statutory periodic tenancy that arises after the initial fixed term. Until the deposit is properly protected, the landlord cannot serve a valid section 21 notice. The tenant was entitled to compensation.
Dyfyniadau allweddol
"The deposit continues to be held by the landlord in connection with the periodic tenancy, and the statutory requirements must be complied with in respect of that tenancy."
— Lloyd Jones LJ
Triniaeth ddilynol
Key authority on deposit protection requirements and their impact on section 21 notices.
The Deregulation Act 2015 partially addressed the issues raised, providing transitional provisions for existing tenancies.