Over 1,000 deposits still not protected

Thursday 04 July 2019

Up to 1,500 deposits may still not be protected under a scheme launched four years ago to protect local renters from falling victim to landlords treating them unfairly at the end of their tenancies.

When the scheme was launched in 2015, it was estimated there were approximately 13,400 units of accommodation being rented in the private sector.

However at the end of May this year, only 11,869 deposits were protected by My Deposits Jersey.

Since November 2015, all landlords and agents who take a deposit from their tenant on a new, renewed or varied tenancy agreement have been required transfer the money to My Deposits within 30 working days of receiving it. Any who fail to do so could be fined up to £2,000.

Once a tenancy ends, both the landlord and the tenant must agree how much deposit should be returned and then authorise its release before it is returned. If there is any dispute over the amount of deductions, either party can raise a deposit dispute and Mydeposits can offer a free and impartial Alternative Dispute Resolution Service (ADR) to resolve the issue.

Pictured: The Housing Minister, Senator Sam Mézec, acknowledged there will be “a level of non-compliance with the tenancy deposit scheme requirements.”

In response to a written question from Deputy Monty Tadier, the Minister for Children and Housing, Senator Sam Mézec, noted that not all landlords take a deposit, while some have stopped taking any since the tenancy deposit was introduced.

He also commented that the scheme only applies to tenancies that started, were renewed or varied after November 2015, and that some may therefore not need to be protected in the scheme yet.

However, he acknowledged there will be “a level of non-compliance with the tenancy deposit scheme requirements.”

According to the law, if Environmental Health becomes aware of deposits that have not been protected – either as a result of a complaint by a tenant or through proactive inspection – they will take action to ensure that the deposits are protected. 

While they received 97 enquiries since August 2018 relating to tenancy matters – including tenancy deposits but also tenancy agreements, condition reports and suspected over-charging for services - the authority holds no specific data on deposit protection.

Since the law was introduced, one case involving a landlord who had not protected their tenant’s deposit under the scheme has been referred to the Attorney General for prosecution. 

Pictured: Since the scheme was lunched, only one case has been referred to the Attorney General for prosecution.

Deputy Montfort Tadier told Express that he was raising the query in the States Assembly in response to concerns from constituents.

“The deposit scheme is there for everyone’s benefit, and it is important that it is protected to avoid disputes at the end of tenancies,” Deputy Tadier commented. “It is also a legal requirement that they are paid in.”

Last year, the Government introduced a voluntary Rent Safe scheme to ensure landlords meet minimum standards. Earlier this year, they brought forward proposals for a compulsory scheme for all rental properties that, for the first time, would allow it to create a register of the location of all private rented homes on the island.

It is hoped the proposed landlord license scheme for rented properties will help identify further cases where deposits have not been protected in the tenancy deposit scheme.