Important news for landlords and agents who take rents in cash
It has been bought to our attention, by an LRS Forum member, that as of tomorrow 63m £50 banknotes bearing the portrait of the first governor of the Bank of England, Sir John Houblon, will be withdrawn from circulation.
From the 30th April 2014, only the £50 banknote featuring Matthew Boulton and James Watt, which was introduced in 2011, will hold legal tender status.
After tomorrow general retailers are unlikely to accept the Houblon notes as payment, however most bank and building societies will continue to accept them for deposit to customer accounts. Agreeing to exchange notes after 30th April is at the discretion of individual institutions.
Barclays, NatWest, RBS, Ulster Bank and the Post Office have all agreed to exchange Houblon £50 notes for members of the public – up to the value of £200 – until 30 October 2014.
The Bank of England will continue to exchange Houblon £50 notes after 30th April, as it would for any other Bank of England note which no longer has legal tender status.
A bit of advice from another LRS member on the issue:
…If you take multiple rents in cash, put them in separate envelopes with the tenancy details on the front, so when you are depositing them into your account if any notes are flagged up as forged, you know where it came from. – See more at: http://www.landlordreferencing.co.uk/forum/discuss/community-forum/those-who-take-rents-in-cash-please-read/