Letting agents face deposit compliance risk under new rules
Original Article Summary
Letting agents managing nearly 70% of England's protected tenancy deposits may face compliance issues following changes introduced under the Renters' Rights Act. The Letting Partnership warns that deposit registration processes linked to tenancy start dates rather than receipt of funds could result in breaches. The post Letting agents face deposit compliance risk under new rules appeared first on PropertyWire.
PropMatch Curated Analysis
Changes under the Renters' Rights Act (effective 1 May 2025) alter the sequencing of deposit receipt and tenancy signing, potentially causing letting agents to breach 30-day deposit registration requirements if their software still links triggers to tenancy start dates. Penalties can reach three times the deposit amount.
Investor Relevance
Landlords using letting agents — especially those with large portfolios — face indirect but real exposure if their agent fails to update workflows, triggering deposit registration breaches and compensation claims from tenants. This is a compliance risk that investors should proactively raise with their letting agents.
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