Further information

Deposists: information for landlords

Any landlord taking a deposit which they do not protect by joining a scheme will be breaking the law. They will be unable to regain possession of the property using notice-only grounds for possession and will be liable to pay the tenant three times the value of the deposit.

Deposits: information for tenants

If you are a tenant, at the beginning of a new tenancy agreement, pay your deposit to your landlord or agent as usual. Within 14 days, the landlord or agent is required to give you details about how your deposit is protected.

Tenancy Deposit Protection is the final measure brought in to drive up standards in the private rented sector set out in the Housing Act 2004.

Aims of Tenancy Deposit Protection

There are two main aims:

1. To ensure good practice in deposit handling, so that when a tenant pays a deposit, and is entitled to get it back, they can be assured that this will happen.
2. To help with the settling of disputes by having an alternative dispute resolution service (ADR). It will also encourage tenants and landlords to have in place, from the outset, clear agreement on the condition of the property through best practice, such as the use of inventories, and agreement on the condition of the property.

Types of scheme

There are two types of scheme:

1. The custodial scheme under which the landlord must handover deposits to the scheme operator. This scheme is operated by The Deposit Protection Service.
2. The insurance based scheme which allows landlords or their agents to retain the deposit monies until the tenancy ends. There are two operators for the insurance based scheme: Tenancy Deposit Solutions Ltd. and The Tenancy Deposit Scheme.

All tenant’s deposits must be protected by their landlord or agent with one of these three operators.

Tenants: if your deposit isn't protected

If your landlord or agent hasn’t protected your deposit, you can apply to your local county court. The court can order the landlord or agent to either repay the deposit to you or to protect it in a scheme.

If your landlord or agent has not protected your deposit, they will be ordered to repay three times the amount of deposit to you.

Tenancies from before 6 April 2007

This only applies to tenancies that are created from 6 April 2007. Tenancies started before this date are not affected.

However, if your have been a tenant for some time and then sign a new assured shorthold tenancy agreement after 6 April 2007 for the property you are living in, you will be covered by Tenancy Deposit Protection.

External links

Advice & information

Tenancy Deposit Protection, Department for Communities & Local Government
Provides frequently asked questions for tenancy deposit protection, a factsheet on tenancy deposit schemes and a study report on tenancy deposits implementation.

Crisis
Charity working to fight homelessness.

Scheme operators

Deposit Protection Service
The company that provides the 'custodial' Tenancy Deposit Scheme (see 'Further information' above for details).

Tenancy Deposit Solutions
Operate the insurance-based scheme. Includes answers to frequently asked questions fro  landlords.

The Tenancy Depost Scheme
Second provider of the insurance-based Tenancy Deposit Scheme. Includes information about the scheme and the dispute service.

About links to other websites.