The National Landlords Association is warning landlords that ‘no win no fee’ lawyers are beginning to jump on the deposit protection bandwagon. The claims were made during a Radio 4 programme on Friday when the chairwoman of the NLA, Carolyn Uphill, told listeners that Tenancy Deposit Protection schemes were being inundated with requests for information by no win no fee law firms hoping to make a quick buck from unwitting landlords.
Failing to Protect Deposits Could Lead to Claims
Every landlord now knows the importance of protecting a tenant’s deposit. At the beginning of a tenancy, a landlord has 30 days to place the deposit in an approved Tenancy Deposit Protection (TDP) scheme. They are also legally obliged to give their tenant important information about the scheme.
Protect Yourself from the Sharks
Most landlords do take the necessary steps to protect their tenant’s deposits. The problem is, even when a landlord places the deposit in an authorised deposit protection scheme, if he then forgets to pass on the relevant information about the scheme, he leads himself wide open to a claim. Many of the no win no fee claims lawyers are banking on the fact that inevitably some landlords will fail to pass on the prescribed information packs.
The Effect of Claims on Landlords and Tenants
The only people who really stand to gain in this situation are the no win no fee lawyers. There is very little benefit to anyone else and if such claims become more widespread, the NLA is concerned that there is a real danger relations between landlords and tenants will be adversely affected.
