Landlords and letting agents are being given more time to protect their tenant’s deposits, but penalties for failing to protect will be more strictly enforced, under changes to the Localism Bill.

The changes, which will come into force from 6 April 2012, give landlords and letting agents 30 days to protect their tenant’s deposit, an increase from the current 14 days.

The tenant must be provided with proof of the deposit protection and the Prescribed Information within this 30 day limit by the landlord or agent.

If the deposit isn’t protected, courts will be able to order the landlord or agent to pay the tenant between one and three times the deposit amount as penalty. They will also be unable to seek possession of the property using a Section 21 notice until the penalty is settled.

The tenant can still seek compensation even if the deposit is protected after the 30 day period, but before going to court. And as outlined in an article in March edition Property Investor News, tenants can also make a claim for up to six years after they have left the property.

Eddie Hooker, Chief Executive, mydeposits, said: “These changes to the Localism Bill will close a loophole which saw some landlords escape penalty, despite not protecting the deposit properly or protecting it late.

“It will help give tenants certainty that their deposit is being protected and strengthen penalties for those landlords who try to ignore their obligations.