Tenancy deposit protection

Tenancy deposit protection: how it works

Tenants have been able to benefit from enhanced security and peace of mind since the introduction of the Tenancy Deposit Protection scheme (TDP), which offers a faster, cheaper and fairer way of settling any disputes over the return of deposits in the private rental sector.

Landlords entering into new tenancy agreements are required to place any deposit with a government-authorised scheme, which safeguards the money and offers independent adjudication in the event of any dispute. Tenants who have kept their rented property in good condition can be confident that they will not have all or part of their deposit withheld on spurious grounds, a common complaint made by tenants.

The establishment of the alternative dispute resolution service (ADR) also encourages tenants and landlords to have in place, from the outset, clear agreement on the condition of the property through use of inventories, and agreement on the condition of the property – thus ensuring that landlords are also protected.

TDP applies to all assured shorthold tenancies (ASTs) in England and Wales, where a deposit is taken. Virtually all new contracts to let a property are ASTs. A contract that is an AST will be clearly marked as one. The TDP is an effective addition to the measures set out in the Housing Act 2004 to drive up standards in the private rented sector, including licensing multiple occupancy homes and new safety rules.

For further information visit www.direct.gov.uk/tenancydeposit

Useful leaflets on the Tenancy Deposit Scheme

You can download a useful leaflet on the tenancy deposit scheme by clicking either landlord or tenant.  Both of these leaflets will give you important information on the scheme and what it means for you as a tenant or as a landlord.

You can also find further advice on the tenant deposit scheme and a special Q & A section by clicking here

Unipol/TDS Deposit Protection Scheme

The Unipol/TDS Deposit Protection Scheme enables Unipol Code landlords to protect deposits quickly and cheaply through The Dispute Service, an insurance-based deposit protection scheme. This is exclusively for Unipol Code landlords in Leeds, Bradford and Nottingham, as a benefit of their accreditation scheme membership. It enables smaller owners access to a scheme that was previously unavailable to them. For more information click here

Information on the handling of deposits by agents

The Dispute Service is aware that some member firms are registering deposits on behalf of other, non-member, companies. Member firms should be aware that, by doing so, they are accepting full responsibility for the deposit and subsequent compliance with TDS's rules and the requirements of the tenancy deposit legislation. TDS would like to warn members that failure to pay over to them any amount in dispute will result in legal action to recover outstanding sums and will prejudice their TDS membership.

More information on deposits

Unipol has lots of information on deposits for students.  This information could be used to help your tenants with any queries they have and includes:

  • deposit recovery
  • deposit tips on how to avoid problems
  • deposit inspection checklist.

To go to this section please click here