Tenancy Deposit Protection Scheme

Tenancy Deposit Protection Scheme (TDPS)

From 6 April 2007 tenants who pay a deposit to a landlord in an assured short-hold tenancy will be protected under the new national Tenancy Deposit Protection Scheme (TDPS). Introduced under Part 6 of the Housing Act 2004, this new mandatory scheme will significantly improve tenants' rights and ensure that their deposits are not unfairly withheld.

The new scheme applies to all deposits that are paid by tenants after 6 April 2007. Within 14 days of the tenancy starting, the landlord must protect the deposit through one of three Government sponsored schemes. At the end of the tenancy, if the landlord and tenant cannot agree how to split the deposit, there will be a new free-to-use alternative dispute resolution service.

There will be heavy penalties for landlords who fail to safeguard their tenants' deposits. Following an application by the tenant, the Courts can order the landlord to pay the tenant three times their original deposit as a lump sum payment. Landlords also lose the right to obtain automatic possession of the property under section 21 of the Housing Act 1988.

To find out more about the Tenancy Deposit Protection Scheme, please click the link below.