As of 6^th April 2007, the government introduced the tenancy deposit protection scheme for all assured short hold tenancies in England and Wales under the Housing Act 2004. The legislation aims to ensure that tenants who have paid a deposit and are entitled to receive all or part of it back, actually get it.

The following will not need to be registered with a tenancy deposit protection scheme:

• Resident landlords (those living in the property)
• Landlords of tenancies with rent of over £25,000 a year *
• Company lets
• Student accommodation let directly by Universities or Colleges.

* This amount will rise to £100,000 from 1st October 2010

In addition to these, deposits taken before 6 April 2007 do not need to be protected by a scheme. However, as an existing tenancy is renewed and a landlord agrees a new fixed-term tenancy, the initial deposit taken must then be lodged with a tenancy deposit protection scheme.

If you don’t protect your tenants’ deposits when required to, your tenants can take you to court and you may have to repay them their deposit plus three times the amount of their deposit. You will also be unable to seek possession of your property in certain circumstances.

If you have any questions or queries relating to the topic there are websites providing information on this such as; www.direct.gov.uk and www.depositprotection.com.  

We are also always here to provide you with any assistance you may need on 0800 970 7172.

Many thanks,

Jade