SCHEDULES
SCHEDULE 1Permitted payments
2Tenancy deposit
1
A payment of a tenancy deposit is a permitted payment.
2
In this Act “tenancy deposit” means money intended to be held (by a landlord or otherwise) as security for—
a
the performance of any obligations of a tenant, or
b
the discharge of any liability of a tenant,
arising under or in connection with a tenancy.
3
But if the amount of the tenancy deposit exceeds—
a
the amount of five weeks’ rent, where the annual rent in respect of the tenancy immediately after its grant, renewal or continuance is less than £50,000, or
b
the amount of six weeks’ rent, where the annual rent in respect of the tenancy immediately after its grant, renewal or continuance is £50,000 or more,
the amount of the excess is a prohibited payment.
4
In this paragraph—
a
“five weeks’ rent” means five times one week’s rent,
b
“six weeks’ rent” means six times one week’s rent, and
c
“one week’s rent” means the amount of the annual rent payable in respect of the tenancy immediately after its grant, renewal or continuance divided by 52.