Tenancy deposit decision awaited

Thanks go to PainSmith Landlord and Tenant blog for pointing out to me the interesting case of Draycott v Hannells Lettings Ltd that was heard earlier this week in the High Court and now reserved.

According to PainSmith, who should know because they are acting in the matter, the case should provide the first binding decision on tenancy deposit protection under the Housing Act 2004 and could have far-reaching effects.

Quick facts:
28 February 2008, Draycotts enter into tenancy agreement for a Derby property on which Hannells Lettings Ltd is acting as agent for the landlord. Deposit of £2,700 is paid on 4 March, but not registered until 19 May. Draycotts sue Hannells under section 214 of the Act alleging that Hannells liable to pay penalties under section 214 as the deposit was not registered when it should have been. County Court Judge allows claim. Hannells appeals to High Court saying claim could only be brought against landlord and that because deposit registered before claim issued no penalty could be imposed anyway.

Should be a good-un.

Photo by Cennydd Bowles via Flickr.