Tenancy Deposit Protection Proposals

Date published: 30 November 2005

The Government is from today consulting on proposals on how statutory Tenancy Deposit Protection will operate from October 2006.

The provisions, among the measures included in the Housing Act 2004, will offer protection for nearly 1.5m assured shorthold tenants and an estimated £768m of tenancy deposits, currently held in England and Wales.

The measures will help drive up standards in the private rented sector, alongside other Housing Act provisions such as HMO and Selective Licensing, the Housing Health and Safety Rating System and Empty Dwelling Management Orders.

The consultation, Tenancy Deposit Protection: consultation on secondary legislation, sets out the rights and responsibilities of both tenants and landlords at the beginning of a tenancy where a deposit is taken. The Housing Act requires all landlords or agents, taking a deposit to be safeguarded by a Tenancy Deposit Scheme (TDS), to provide 'prescribed' information to a tenant. The consultation is seeking views on the content of that information.

The Government announced on 5 August 2005 the start of the procurement exercise to seek potential suppliers to run Tenancy Deposit Schemes.

Commenting on the proposals, Local Letting Agent Adil Ansari of Keystone Properties (www.keystoneestates.co.uk) said: "Tenancy Deposit Protection will prove to be useful to both tenants and landlords. Deposits are taken at the beginning of the tenancy and it is sometimes unclear as to what specifically the deposit is held for and under what circumstances deductions will be made. Such legislation will undoubtedly prove useful."