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Tenancy Deposit Scheme

Contact Details
 
Online Services
Phone:
024 7637 6406
Fax:
024 7637 6551
Email:
Service Unit: 
Housing
 
 

Tenancy Deposit Scheme

Please note changes to the Tenancy Deposit Scheme rules attached below
 
From 6 April 2007, all deposits (for rent up to £25,000 per annum) taken by landlords and letting agents for Assured Shorthold Tenancies in England and Wales, must be protected by a tenancy deposit protection scheme.
 
What are Tenancy Deposit Schemes?
 
The schemes:
  • allow tenants to get all or part of their deposit back when they are entitled to it
  • make any disputes easier to resolve
  • encourage tenants and landlords to make a clear agreement from the start on the condition of the property
 
There are two types of tenancy deposit protection scheme available for landlords and letting agents. All schemes provide a free dispute resolution service.
 

Insurance-based schemes

  • the tenant pays the deposit to the landlord
  • the landlord retains the deposit and pays a premium to the insurer - the key difference to the custodial scheme
 
Within 14 days of receiving a deposit
The landlord or agent must give the tenant the details about how their deposit is protected including:
  • the contact details of the tenancy deposit scheme selected
  • the landlord or agent’s contact details
  • how to apply for the release of the deposit
  • information explaining the purpose of the deposit
  • what to do if there is a dispute about the deposit

At the end of the tenancy:
  • if an agreement is reached about how the deposit should be divided, the landlord or agent returns all or some of the deposit
  • if there is a dispute, the landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved
  • if for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it
 

Custodial schemes

  • the tenant pays the deposit to the landlord or agent
  • the landlord or agent then pays the deposit into the scheme
 
Within 14 days of receiving a deposit
The landlord or agent must give the tenant the details about how their deposit is protected including:
  • the contact details of the tenancy deposit scheme selected
  • the landlord or agent’s contact details
  • how to apply for the release of the deposit
  • information explaining the purpose of the deposit
  • what to do if there is a dispute about the deposit
 
At the end of the tenancy:
  • if an agreement is reached about how the deposit should be divided, the scheme will return the deposit, divided in the way agreed by both parties
  • if there is a dispute, the scheme will hold the deposit until the dispute resolution service or courts decide what is fair
 
The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will be used to offer interest to the tenant, or landlord if the tenant isn’t entitled to it.
 
For further information on the scheme please go to the following website on Tenancy Deposit Schemes or view the leaflet below.

View/Download Documents
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Tenancy deposit information  (67.3 KB)
 
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Important New Tenancy Deposit Scheme Rules  (51.0 KB)
 
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Tuesday 22 May 2012