As part of the Housing Act 2004 the government is introducing tenancy deposit protection for all assured shorthold tenancy (ASTs) in England and Wales where a deposit is taken. From April 6th 2007 all deposits paid under an AST have to be protected within 14 calendar days of reciept by the landlord.

This legislation aims to ensure that tenants who have paid a deposit to a landlord or letting agent are entitled to recieve all or part of it back at the end of that tenancy, actually get it.

Available Schemes

The Deposit Protection Service (DPS)

The Tenancy Deposit Scheme (TDS)

mydeposits (the trading name of Tenancy Deposit Solutions LTD)

If a deposit is not protected, the landlord will be breaking the law. S/he will be unable to regain possesion of the property using notice only-only grounds for possesion under Section 21 of the Housin Act 1988.

The tenant can apply for a court order requiring the deposit to be protected, or for the prescribed information to be given to them. If the court finds that the landlord has failed to comply with these requirements, or that the deposit is being held in accordance with an authorised scheme, the courts must either:

• Order the landlord to repay the deposit within 14 day of issuing the court order, or
• Order the landlord to pay the deposit into the designated account held by the custodial scheme administrator.

The court must also order the landlord to pay to the tenant (or person who paid the deposit on his/her behalf) an amount equilavent to three times the deposit within 14 days of the making of the order.