If a tenancy deposit is paid by one other than the tenant (ie, a Relevant Person), who does the deposit less deductions get returned to post-tenancy?

Question

Raphael pays a tenancy deposit on behalf of Timothy, who lives in a property for a 12 month tenancy. Who should the deposit be returned to at the end of the tenancy?

I'm wondering specifically if there are statutory provisions that address this question, not to be referred to the relevant contract.

Answer 1

The Housing Act 2004 requires that the deposit is returned to the Tenant, thus you return the deposit to Timothy, and what happens after that is between Raphael and Timothy.

Answer 2

It depends whether:

• Raphael is a party to the tenancy agreement
• Timothy considered the money a gift, which he used to pay the deposit
• Raphael considered the money to be a loan

In the absence of a written agreement, and assuming they dispute who should get it, some arbitration is going to be required (which may or may not be in a court).