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Tenancy Deposit Protection

Posted: 05.05.2009

When a landlord or letting agent takes a deposit from a tenant, the deposit must be protected in a government-authorised tenancy deposit scheme. This new rule applies if the tenancy is an assured shorthold tenancy.

At the beginning of a new tenancy agreement, the tenant pays their deposit to their landlord or agent as usual. The landlord or agent must then ensure it is protected. Landlords and agents have a choice of three schemes providers, offering two types of scheme to protect the deposit.

Custodial schemes

Money is held by the scheme until it is time for it to be repaid at the end of the tenancy. The custodial scheme is free to use. The landlord simply puts the deposit into the scheme at the beginning of the tenancy. There is one custodial scheme provider.

Insurance-based schemes

Under the insurance schemes the landlord keeps the deposit, and pays the insurance scheme to insure against the landlord failing to repay the tenant any money due to him. There is a choice of two insurance-based schemes.

Other Landlord Property Regulations

Energy Performance Certificate
HMO (Houses in Multiple Occupation)
Gas Safety (Installations and Use) Regulations 1994 (as amended)
Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended 1989 and 1993)