Also on 6 April 2013, new rules came into force aimed at removing the need to register rent deposit deeds (RDDs) at Companies House.
A RDD is the document by which a tenant lodges a sum of money with its landlord as security for the performance of its (the tenant's) obligations under the lease. The landlord can then, at a later date, draw down from the deposited sum if the tenant defaults. Depending on quite how the landlord holds the tenant's money, it has usually been the case that the RDD creates a legal charge over the bank account in which the deposit is held. Consequentially, this type of RDD required registration at Companies House because it includes a form of legal charge.
Under the new rules, all legal charges require registration unless they fall within a stated exception.
Since 6 April 2013, the Companies Act 2006 (as amended) expressly excludes from the registration requirements any charge "in favour of a landlord on a cash deposit given as a security in connection with the lease of land" (section 859A(6)). Standard forms of rent deposit wording should therefore come within this exemption, meaning that the requirement to register a RDD at Companies House has fallen away.