New Tenancy Deposit Protection Scheme

From the 6th of April 2007, by law, every landlord and letting agent in England and Wales will have to sign up for a Tenanct Deposit Protection Scheme; failing to do so could lead to a court order and fine

On the 6th of April 2007, a new legislation called the Tenancy Deposit Protection (TDP) will be activated in order to provide protection to tenants security deposits. The protection act will apply to all shorthold tenancies in England and Wales, where a deposit fee is taken.

All landlords must belong to a tenancy deposit protection scheme or they could be taken to court and fined.

The National Association of Estate Agents has urged all landlords and estate agents to act now by joining one of the three government approved schemes if they haven’t already done so.

The three schemes are:
The Deposit Protection Service (The DPS) - www.depositprotection.com
Tenancy Deposit Solutions Ltd (TDSL) - www.mydeposits.co.uk
The tenancy Deposit Scheme (TDS) - www.td.gb.com

Jan Bartlett, lettings expert at the NAEA, commented: “As of 6th April if you let a property under an assured shorthold tenancy agreement - the most common type in England and Wales - you have to be part of a government authorised scheme. If you are not then you may be ordered to repay the deposit you hold, with the possibility of an additional fine. You may also be prevented from serving a Section 21 notice
to evict your tenant if the need arises.”

For a more in-depth breakdown of this issue, go to my tenancy Deposit Protection Easy Guide article.

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