New tenancy deposit rules become law in Northern Ireland

The laws – similar to those which already exist in Scotland, England and Wales – come into force today (Monday) and were brought in to protect tenants by reducing the number of unfairly withheld deposits.

A recent poll by the Letting Protection Service Northern Ireland (LPS NI) showed some 77% of letting agents thought the industry was not prepared for the new laws.

Any new deposit will have to be registered with an approved scheme like the LPS NI within 14 days. The landlord or letting agent must also supply certain information to the tenant within 28 days of receiving the deposit.

Failure to protect the deposit risks an on-the-spot fine of three times the deposit total or a court imposed maximum fine of £20,000.

LPS NI director Kevin Firth said: “The new laws are the final piece of the jigsaw for tenancy deposit protection in the UK.

“We have over 340,000 landlords already protecting their deposits with us in Scotland, England and Wales. We’re confident landlords in Northern Ireland will embrace us in the same way!

“Registering is not much more than a few mouse clicks. There’s just no need to risk a fine because it’s so fast, fair and secure.”

The LPS NI is run by the same company as The Deposit Protection Service in England and Wales, and The Letting Protection Service Scotland.

Under a custodial scheme, the landlords hand over the deposit to the LPS NI to protect until the end of the tenancy, at which time either party will be able to start the deposit repayment process.

The LPS NI has also been approved to run an insured scheme. More details on that will be released soon.