Since 6th April 2007 all landlords who have received a deposit (or bond as they are sometimes called)  under the Housing Act 2004, have had to protect them in an authorised tenancy deposit scheme.

The purpose of the legislation was to give greater protection to Assured Shorthold Tenancy (AST) tenants by providing safeguards against the misappropriation of their deposits and introducing sanctions of those landlords who failed to comply with requirements. However, landlord-friendly judicial interpretation of the legislative scheme quickly weakened the effect of the sanctions created by the Act to such an extent that a senior judge concluded that the scheme was not providing the safeguards it was intended to provide.

When can an occupier claim a beneficial interest in a property and what should a potential buyer do to avoid hitting problems? John Coulter explains...