The Tenancy Deposit Protection Scheme
Under the provisions of the United Kingdom Housing Act 2004 every landlord or letting agent that takes a deposit for an assured shorthold tenancy in England and Wales must join a tenancy deposit scheme. The new regulations came into effect from 6 April 2007. The deposit acts as a safeguard should the tenant cause any damage to the property.
The purpose of the new regulations is to ensure good practice in this area. The secondary purpose of the new regulations is to try and keep disputes between landlords and tenants out of the courts by encouraging alternative dispute resolution.
In November 2006 three companies were awarded contracts by The Government to run Tenancy Deposit Schemes:
- The Deposit Protection Service (The DPS)
Insurance Backed Schemes
- Tenancy Deposit Solutions Ltd (TDSL) (now trading as my deposits)
- The Tenancy Deposit Scheme (TDS)
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