Tenancy Deposit Protection: Guide for Landlords

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From 6 April 2007 the Government has introduced Tenancy Deposit Protection to ensure deposits are safeguarded by an approved Tenancy Deposit Protection Scheme.

On this page are details of the scheme and what you must do as a landlord to ensure you have Tenancy Deposit Protection. There is also available a printed guide which has recently been produced entitled 'Tenancy Deposit Protection - a guide for landlords'. Copies are available from Guildhall One reception or you can download a pdf version - see related documents below.

What is Tenancy Deposit Protection?

The Department for Communities and Local Government (DCLG) has introduced Tenancy Deposit Protection to help resolve deposit disputes.

When does Tenancy Deposit Protection come into force?

From 6 April 2007 all new deposits must be safeguarded by an approved Tenancy Deposit Protection Scheme.

What happens if I don’t protect a deposit I hold?

If you fail to protect a deposit you can face a court fine to the value of three times the deposit amount you hold.

You will also not be able to obtain a possession order under Section 21 Housing Act 1988 if you fail to protect a deposit provided to you after 6 April 2007.

Can I avoid Tenancy Deposit Protection?

Tenancy Deposit Protection applies to all assured shorthold tenancies.

You will not be able to provide a different type of agreement where the actual terms of the letting confirm an assured shorthold tenancy.

Do I need Tenancy Deposit Protection for a deposit I already hold?

Yes, if you renew a letting with your tenants after 6 April 2007.

No, if you do not renew a letting entered into before 6 April 2007.

What Tenancy Deposit Protection Schemes are available?

You have a choice of either a Custodial or an Insurance Backed Scheme.

Under the Custodial Scheme you forward the deposit to the scheme provider. The Custodial Scheme returns the deposit to the tenant at the end of the letting but only where the tenant is entitled to this.

Where there is a dispute about the return of deposit the Custodial Scheme will withhold the deposit until the dispute is resolved either through the dispute resolution service or the courts.

Under the Custodial Scheme interest on deposits held will be used to maintain the running costs of the scheme. The Custodial Scheme is free.

With the Insurance Backed Scheme you retain the deposit but you must pay a premium to the insurer.

Under the Insurance Backed Scheme if there is a dispute about the return of deposit you must hand over the disputed amount to the scheme provider until the dispute is resolved.

Where a disputed amount is not transferred to the scheme provider where the tenant is entitled, the insurer will pay the amount due to the tenant and seek to recover monies from you.

Tenancy Deposit Scheme Providers

There is one Custodial Scheme provider:

The Deposit Protection Service (The DPS)
Phone: 0870 707 1 707

There are two Insurance Backed Scheme providers:

Tenancy Deposit Solutions Ltd (TDSL)
3rd Floor
Kingmaker House
Station Road
New Barnet
Hertfordshire EN5 1NZ
E-mail: info@mydeposits.co.uk

The Tenancy Deposit Scheme (TDS)
E-mail: deposits@tds.gb.com
Phone: 0845 226 7837

Do I need to provide an inventory?

Tenancy Deposit Protection does not require the provision of an inventory but to help avoid disputes it is good practice to do so.

What do I have to do now?

You should now be considering which of the Tenancy Deposit Protection Schemes you want to use - the Custodial Scheme or one of the Insurance Backed Schemes.

What do I do when I have chosen a Tenancy Deposit Protection Scheme?

When you receive a deposit you will have 14 days to notify a tenant  which Tenancy Deposit Protection Scheme you are using.

Where do I go for further information?

Directgov - the UK Government website
Phone: 0845 609 0696
Leaflets available in other languages

National Landlords Association
22-26 Albert Embankment
London SE1 7TJ

Phone: 020 7840 8900
Fax: 0871 247 7535
E-mail: info@landlords.org.uk
Web: www.landlords.org.uk

Housing Advice Service
Guildhall 1
Kingston KT1 1EU
Phone: 020 8547 5468
E-mail: housingadvice@rbk.kingston.gov.uk

Open: Monday to Thursday 8.45am to 5.00pm; Friday 8.45am to 4.45pm

Citizens Advice Bureaux

Phone: 0870 126 4019

Visit at the following offices:

Citizens Advice Bureau
Neville House
55 Eden Street
Kingston KT1 1BW
Open: Monday, Tuesday and Friday 11.30am to 1.30pm

Citizens Advice Bureau
Library Court, Elm Road
Chessington
Open: Tuesday 10.00am to 2.00pm; Thursday 10.00am to 1.00pm

Citizens Advice Bureau
New Malden Library
Kingston Road
New Malden
Open: Wednesday 10.30am to 2.00pm

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